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.

44 COMMENTS

Tharaka Madarasinghe February 17, 2023 At 6:22 AM

Dear Team,

Kindly support to clear below,
* Hope BL endorsement enough by consignee ( On BL) to the HSS buyer
* Can we use the same invoice for the CUSTOMS clearance?
* In case BL consignee don’t like to disclose that value , what is the next option? Can he issue the new invoice under his letterhead for the clearance?
* What are the advantages and disadvantaged from the both of them point of view?

Thanks.
tharaka1008@gmail.com

Debarshi Datta November 18, 2021 At 1:28 PM

Dear all thanks very much for the inputs I have a query in case of high sea sales of the importer dont want to share the original price or the import invoice what is the alternate document to be issued. Is that possible in the 1st place

Tasmiya January 1, 2021 At 4:38 PM

What is the role of Freight Forwarder In handling High Sea Sale (HSS)shipment ?

Exim January 10, 2020 At 10:11 AM

Who will issue the container bond..High sea seller or the buyer?

MURALI A September 18, 2019 At 8:59 AM

Is it allowed to close a deal by concluding price and finance terms before shipment and make it high sea sales after shipment. Means, the buyer arranges delivery order to local dealer in January, shipment happens in February and the goods are sold to the buyer in February. Is this allowed under HSS

Pravin Waghamare August 20, 2019 At 11:24 AM

who pays the DO charges during import custom clerance ???

Wadhwa December 1, 2018 At 10:36 AM

Hello, Sir! In the case where the shipping company bill is issued in the name of the original importer but the BoE and HSS agreement is in the name of the HSS buyer, will the HSS be valid? Kindly answer

- Hariesh Manaadiar December 1, 2018 At 11:20 AM
  
  If the bill is issued in the name of someone, it is a STRAIGHT BILL OF LADING which is non-negotiable and non-transferable, so it cannot be endorsed to the HSS buyer.. If there is such plans then it is better to issue as a TO ORDER Negotiable bill so that it can be transferred..
- P.K.Sen December 30, 2019 At 8:24 AM
  
  Yes. Bill of Lading should be endorsed in favour of H.S.Buyer well before receipt of the goods at destination to fall in HSS.
Samson November 22, 2018 At 12:52 PM

Dear Sir.,,
If the buyer changed after HSS & IGM filed on on first buyer but container not discharged at POD. Is there any chance to transfer the same HSS to another buyer? Like transferred High Sea Sale agreement?

- Pradip Kumar Sen December 30, 2019 At 8:28 AM
  
  Yes. But the same to be done well before the goods arrival at port of destination. Port of destination includes both sea port and airport.
mayuresh June 24, 2018 At 8:43 PM

HSS can be applicable in EUROPE region?

ram June 7, 2018 At 11:15 AM

please confirm whether the date of sale agreement can be after the flight landed in destination

- P.K.Sen December 30, 2019 At 8:17 AM
  
  Simple answer is ‘NO’ HSS Agreement must be done prior to flight landing at destination. Otherwise it will not be HSS at all. Original sellers Invoice, Bill of Lading, Packing List etc should be ‘ENDORSED’ in favour of HSS Buyer and IGM should be filed by the carrier in the name of HSS Buyer well before arrival of the goods at destination port or Airport to make it a HSS.
Sandeep April 19, 2018 At 3:54 AM

Hello sir
we can sale goods to another country in high seas sale basis & high seas commission will be any duty.

Hariesh Manaadiar February 25, 2018 At 10:26 PM

Hi Chandrasekhar, not clear on your question.. Can you elaborate..

Chandrasekhar B February 25, 2018 At 12:24 PM

Gd evening.. .have you got the answer. Whether different countries can involve in high sea sales??

parveen yadav September 28, 2016 At 8:36 AM

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

Kyaw Lin May 22, 2015 At 6:31 AM

Does shipping line have right to collect High Sea Sales Charges ?

Vikas January 6, 2015 At 2:49 PM

Hello. I have question on high seas delivery? I have order to deliver Bitumen high seas. what this means.

Pranab Bhattacharya April 18, 2014 At 8:48 AM

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

Mohammed Shabbir February 10, 2014 At 9:19 AM

Whether high sea sales is within ICCA cover

Rajesh November 22, 2013 At 9:02 AM

Share with me your mail id

- Hariesh Manaadiar November 23, 2013 At 12:18 PM
  
  manaadiar@shippingandfreightresource.com.. Its available via the Contact Link..
Malay October 12, 2013 At 1:16 PM

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

9958756689 September 27, 2013 At 3:41 PM

Hi Guys

I have got published book on High Sea Sales, if some body interested can reach me on sunraj.18@rediffmail.com.

Regards,
R. Kumar
Mob.no. 9958756689

- Hariesh Manaadiar September 27, 2013 At 4:52 PM
  
  Hi Kumar, maybe you can share some of the info from your book with interested readers..??
Sanjay September 25, 2013 At 7:22 AM

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?

Gajanan August 28, 2013 At 8:28 AM

Realy it is worth

SHRIDHAR MAVLANKAR July 23, 2013 At 8:31 AM

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.

Sampa Pramanik July 12, 2013 At 12:55 PM

Worth reading…….

- jane Migongo September 2, 2022 At 11:21 PM
  
  Found the content and comments very important. Jane Migongo
anto joseph July 8, 2013 At 5:39 PM

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!

Dhanesh Parekh April 2, 2013 At 10:43 AM

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.

Rakesh Dubal October 12, 2012 At 7:16 AM

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

Jitendra Meher September 2, 2012 At 7:58 PM

Yes tax invoice is issue by the importer to the end user

ranjeet March 26, 2012 At 1:03 PM

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.

Hezal March 14, 2012 At 11:06 AM

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

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

Tenille January 5, 2012 At 9:14 AM

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

Neelam December 30, 2011 At 2:10 PM

can we issue the tax invoice before sailing of the vessel for High sea sale shipment

- kumar October 29, 2013 At 12:33 PM
  
  what is section of HSS
prasad December 9, 2011 At 9:20 AM

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

Abhishek Jain January 24, 2011 At 11:36 AM

Dear,

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

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

Regards

Abhishek Jain
9251040087

- manaadiar January 24, 2011 At 11:56 AM
  
  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..