Forward Transactions on Bond Transfer

High Seas Sale

High Sea sales (HSS)

High Sea sales (HSS) is a sale carried out by the actual consignee (i.e. 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.
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.
Strictly committed by Seller for physical delivery of material in 1st Half i.e. (date 1st to 15th) or 2nd Half i.e. (date 16th to 30th / 31st) of a calendar month without any delay beyond last date of delivery (1st Half or 2nd Half as the case may be), or else, commit with vessel name/ Voyage no., as mutually agreed upon, with firm loading laycan / load port – disport details, Vessel ETA (Expected Time of Arrival) etc..
Seller, however, will not be liable for any delay in delivery due to late arrival of vessel, despite sailing of vessel as per loading laycan, for any reason whatsoever beyond its control when committed with vessel name / details. Vessel NOR would also mean proof of vessel arrival for deemed delivery of material. By Seller, with vessel name or as 1st Half / 2nd Half delivery, as specified explicitly at the time of commitment between Seller and Buyer. Berthing delay will also be part of force majeure beyond control of Seller.
In all cases, both storage and payment to be counted either from the date of tankage, or from the date of clearance of warehouse B/E, whichever is later.
For some reasons, if physical delivery is not possible by Seller and replacement also not available in open market, then Buyer – Seller should mutually agree through Broker for monetary settlement as per price difference prevalent in the market.
Seller to send BT / HS Inv. within 3 working days from BT / HS agreement date, and Plus Tax Inv. within next day of loading.

On Bond Transfer

Basic Price+ CVD +S. Tax (if applicable)

On bond transfer basis

For purchasing imported material On bond transfer basis, buyer must have “IMPORT EXPORT CODE CERTIFICATE”.
Generally in this case, material will be sold in the terms of 35 days free storage period with 60 days (Credit period) payment from the date of Bond Transfer Agreement Or as per the Terms & Conditions decided at time of commitment of deal, with mutual understanding of Buyer, Seller & Broker.
Procedure for Bond Transfer Sale from Kandla Port :
After commitment of deal –
Buyer must send formal Purchase Order on their letter head duly singed by authorized person with rubber stamp.
After receipt of Purchase Order seller forward Original Bond Transfer Agreement (Transfer of Ownership, General Bond under section 59 of Custom Act 1962, Sale contract, Bill of Lading, copy of Import Invoice etc.) to the buyer.
Buyer must return Original Bond Transfer Agreement duly signed, Sealed & Notarized, to the seller along with Post Dated Cheque as per terms of Payment, decided at the time of commitment of deal.
After receipt of document, Seller make arrangement for appointment of CHA (Custom House Agent) for clearance of material.
After filling the Bill Of Entry by CHA, buyer must arrange to pay online Custom Duty on given website. ( http://www.icegate.gov.in/ or https://epay.icegate.giv.in/epayment/index.html ).

Ready Stock (Plus Tax) Delivery

Basic Price + Excise + VAT / CST

For Immediate Lifting

FAs name indicate Ready Stock means Custom Duty paid imported material which is absolutely in ready condition for physical delivery, after fulfillment of some procedures framed by Seller.
Generally Ready Stock Delivery given in below terms:
For Immediate Lifting: within two working days at Kandla and within three working days at Mumbai when tanker/s placed by the Buyer within the stipulated loading hours of terminal. However, Buyer must lift the goods within 5 working days by all means.
With Storage Period: Generally in this case material will be sold in the terms of 30 days free storage period & 60 days (Credit) payment Or as per the Terms & Conditions decided at time of commitment of deal, with mutual understanding of Buyer, Seller & Broker.
After commitment of Deal –
i) Buyer must send formal Purchase Order on their letter head duly singed by authorized person with rubber stamp along with Post Dated Cheque as per terms of Payment decided at the time of commitment of deal.
ii) After receipt of PO & PDC, seller will issue Delivery Order in name of Transporter authorized by buyer & must lift the material within the stipulated time period.
If buyer failed to lift the material within given time period, then additional storage charges will be applicable for Acetic Acid & MEG @ Rs.1500/- per Mt/ per Month Plus Service Tax as applicable And rest of all products @ Rs. 1000/- per Mt/per Month plus Service Tax as applicable Or subject to any changes.
For some reasons, if physical delivery is not possible by Seller and replacement also not available in open market, then Buyer – Seller should mutually agree through Broker for monetary settlement as per price difference prevalent in the market.

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