Hss, sici
Querist :
Anonymous
(Querist) 26 September 2011
This query is : Resolved
To the experts
Please advise on what is meant by the expressions "High Sea Sale" (HSS) and "Sale in course of import" (SICI) and their respective tax implications as regards VAT and other such taxes.
Awaiting a prompt revert.
Regards
R.Ramachandran
(Expert) 27 September 2011
High Sea Sales and Sales in the course of import are similar in nature. In the case of High Sea Sales, the concept is, the goods would get sold when they are still beyond the territorial waters of India. Since they are beyond the territorial waters, and not within the territorial jurisdiction of India, there is no Sales Tax (VAT) on such a sale. For this, the seller and buyer have to enter into a Formal Agreement. The seller will endorse the documents in favour of the buyer. It would then be the buyer, supported by the Agreement, who would file the Bill of Entry. The seller (who was the original importer) having sold the goods on High Sea Sales basis will be off the loop.
Similarly, in the case of Sales in the course of Import, the original importer will endorse the documents in favour of a buyer, before the goods leave the 'Customs Frontier'. Here again, the buyer will be filing the bill of entry. Since the goods have been sold prior to their entering the Indian domestic area (i.e. before passing the customs frontier) there will be no incidence of VAT in respect of the sales effected by the original importer to the buyer.
In both the cases, the persons who file the Bill of Entry have to pay the SAD (Special Additional Duty), and claim refund of the same later on if they are eligible to such a refund.
