High Sea Sales


‘A’, an overseas seller supplies goods to ‘B’ an overseas buyer. Once after completion of necessary export procedures, A submits all necessary documents to his bank at seller’s place.

‘B’, enters in to an agreement of sale with C under high sea sale, once after movement of goods from the territorial border of exporter but before arrival of goods at the territorial border of India.

B accepts documents from his bank which has been sent by A through his bank. If the payment terms with A and B are on sight LC or DP, B remits invoice value of goods to A before collecting documents from bank. Incase of credit arrangements with A, B remits invoice value of goods to A as per the arranged credit period. The Bill of Lading (or airway bill) is endorsed by B and transfers the title of goods in favor of C.

B prepares invoice to C in local currency ( INR ). B delivers endorsed original Bill of lading (or airway bill), his invoice in local currency along with import invoice, packing list, certificate of origin, insurance certificate and other necessary documents if any for import clearance duly endorsed. A retains a copy of all documents which he delivers to C.

C files Bill of entry along with other import documents delivered by A with customs authorities. C pays necessary import customs clearance charges with import duty if any. B can also under take customs clearance and delivery to C, if B does not want to know the actual contract price of A and B. In this case, B is filing documents on behalf of C to hide the selling price between A and B.

Once after completion of import customs clearance procedures, C delivers a copy of bill of entry to B. B files the said bill of entry and other copies of import documents and high sea sale documents with his bank.

Apart from document needed for regular import consignment below documents are also needed for high sea sales Documents Needed :
  • Buyers Confirmation letter confirming that the Consignment has been bought on HSS.
  • Seller Confirmation Letter confirming that the consignment has been sold on HSS.
  • High Seas Sale Agreement on Rs. 200/ stamp Paper duly notarised. (notary should be done from the same local advocate from where the agreement is prepared)
  • Commercial Invoice in foreign currency
  • Local Invoice in INR.

[P.N : The same person who is signing the buyer/ seller letter has to sign the agreement. Date of the HSS Agreement has to be between the BL date and arrival date of the shipment.]