Highseas Sales process implementation in SAP

HIGH SEA SALES

Business Example:

• High Sea sales (HSS) is a sale  carried out by the carrier document consignee to another buyer while the goods are yet on high seas or after their dispatch from the port/ airport of origin and before their arrival at the port / airport of destination.

•  HSS is accepted under the import trade control regulation.

•  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.

• On concluding the HSS agreement, the Bill of Ladding should be endorsed in favor of the new buyer. In respect of air shipment, HSS seller should write to the airline / consol agent informing that a HSS agreement has been established with the HSS buyer and that the carrier document should therefore be considered as endorsed in favor of the HSS  buyer and further the IGM should be filed by the carrier in the name of the HSS buyer.

• If the EDI system allows name of HSS buyer to be entered in the system, then there may not be any need to amend the IGM. In this case the B/E is filed in the name of the original importer as the IGM is in this importer name. However , the B/E shows the name of HSS buyer under a separate head in the B/E format. If the system has no provision for showing the name of HSS buyer on the B/E ,then the IGM should be got amended and B/E filed in the name of the HSS buyer.

• In the case of HSS , the CIF ( Cost Insurance and Freight ) value for calculation of duty is taken to be the HSS value.

• 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 customs documents –Bill of Entry is either filed in the name of HSS buyer or such Bill of Entry has an endorsement indicating HSS buyer's name.

• The title (Means ownership ) of goods transfers to HSS buyer prior to entry of goods in territorial jurisdiction of India. The delivery from customs is therefore on account of HSS buyer. The CENVAT credit in respect of CVD paid on import is entitled to HSS buyer.

• HSS is also applicable to goods imported by air. Don't get confused on name of business process. As long as the sale is concluded after dispatch from airport / port of origin and before arrival at the first port of discharge / airport at destination, such sale is considered as HSS.

 Mapping in SAP