What is a High Seas Sale..??

Here is an interesting topic from Asha’s Maritime News..

High Sea sales (HSS) is a sale carried out by the actual consignee (ie, the consignee shown in the Bill of Lading) to another buyer while the goods are yet on high seas or after their dispatch from the port of loading (POL) and before their arrival at the port of discharge (POD). HSS contract/agreement should be signed after dispatch of goods from origin & prior to their arrival at destination. The agreement should be on stamp paper. The word ‘Sea’ appearing in HSS should not be taken by it’s literal meaning. As long as the sale is formalized after dispatch from port of origin and before arrival at the first port of discharge at destination, such sale is considered as HSS.
On concluding the HSS agreement, the B/L should be endorsed in favour of the new buyer. If the seller does not mind disclosing original import values to HSS buyer, in such case it is better from custom clearance point of view for the seller to endorse the B/L, invoice , packing list in favour of the HSS buyer. The endorsement should read “Transferred on High Sea Sales basis to M/S ——– for a sales consideration of Rupees ——–“. Such endorsement should be stamped and signed by the HSS seller.
Sometime HSS buyers buy goods after their arrival. Such sale are not HSS. The stamp paper on which the HSS agreement is executed must not bear the stamp paper purchase date as being post cargo arrival date. Such a case can easily be detected by customs as being a post arrival sale. 

The IGM should be filed by the carrier in the name of the HSS buyer. If not Import General Manifest (IGM) should get amended for which Customs will impose a penalty.

Same goods can be sold more than once on high seas. In such cases, HSS agreement should give indication of previous title transfers. The last HSS buyer should also obtain copies of previous HSS agreement as such documents may be called upon by the customs. HSS is considered as a sale carried out outside the territorial jurisdiction of India. Accordingly, no sales tax is levied in respect of HSS. The title of goods transfers to HSS buyer prior to entry of goods in territorial jurisdiction of India.
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27 comments on “What is a High Seas Sale..??”

  1. By parveen yadav Reply

    dear sir

    i am parveen yadav from haryana , i am working in company my issue is that our company do high sea sale . can we raise invoice in sale invoice series or raise other series

  2. By Pranab Bhattacharya Reply

    very briefly narrated . would be better if pre-requisites for High sea sales is given .

  3. By Malay Reply

    Yeah, that can be and even there may be numbers of High Seas sales between the port of loading to port of discharge

  4. By Sanjay Reply

    In respect of High Seas Sale, can there be different countries involved? e.g. Original shipment from India to Singapore, can this be diverted high seas to Myanmar? Would the shippling line object to the COD(change of destination) request, if we disclose such high seas sale prior to the original shipment?

  5. By SHRIDHAR MAVLANKAR Reply

    I am trying to know about HSS risk, insurance, ownership are transferred from seller to final buyer? Who should carries the costs of overheads till completion of dealing of HSS.

  6. By anto joseph Reply

    by reading of the nature of high sea sales, I presume it can be done only if it is an FOB IMPORT. SINCE IN CASE OF CIF IMPORTS PROPERTY IN GOODS PASS TO BUYER ONOY AT PORT OF LANDING, HENC HE HAS NO OWNERSHIP OF THE SHIPMENT FOR SELLING IT HIGH SEAS. PLS. CONFIRM this view!

  7. By Dhanesh Parekh Reply

    Can we give and commercial invoice before the ship sails.
    Can I do HSS on same day the ship sails.
    Can HSS be disallowed if date of issuence of B/L is later than date of shipping.

  8. By Rakesh Dubal Reply

    Can importer sell oh HSS basis to different buyers where there is only one BL for multipal container ?

  9. By ranjeet Reply

    here i would like to clear that high seas sales are considered only if goods have not crossed the custom barrier of the country and before the custom clearance of the goods are transferred to buyer and buyer will clear the shipment from the custom no matter goods has come through air of seas, for that both party will sign a agreement of high sea sale and on the basis of that buyer can clear the shipment from customs of the country. format of the agreement of high sea sale can be obtained from internet and need to be filled in the a stamp paper and stamp paper.

  10. By Hezal Reply

    Yes! we can do Highseas Sale for Air cargo as well.

    In this case we have to use 200 rs stamp paper for agreement.

  11. By Tenille Reply

    Good Day All,

    I am trying to understand everything on a HSS. I am however not sure when risk, insurance, ownership are transferred between initial seller and buyer, and next final buyer? Who carries which costs till which point?

    Any help will be much appreciated.
    Kind regards,
    Tenille

  12. By prasad Reply

    Dear Abhishek, In case of air cargo lifting it cannot be ment High sea sales it can be High air sales.

  13. By Abhishek Jain Reply

    Dear,

    Is High Sea Sale is applicable in case of air cargo lifting????????????

    Please reply at the earliest????????????

    Regards

    Abhishek Jain
    9251040087

    • By manaadiar

      Hi Abhishek, i have limited knowledge of Air cargo.. But irrespective of the mode of carriage, i suppose this should be a possibility.. Maybe one of the other readers with a bit more experience with air cargo can assist..

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