Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Discussions Forum
Home Forum Customs - Exim - SEZ This

A Public Forum.
Acknowledging the Value of Experts.

Contribute Your Wisdom, Shape the Future.
Let Your Experience Guide Others

Submit new Issue / Query     My IssuesMy Replies
A free service.
You may submit an issue for brainstorming also.

NFMIMS - UNDER HIGHSEAS SALE, Customs - Exim - SEZ

Issue Id: - 119445
Dated: 6-12-2024
By:- Ritesh Dave

NFMIMS - UNDER HIGHSEAS SALE


  • Contents

Dear All,

We sale import to our sister concern under the High Seas Sale.

The product is Copper.

As per the New FTP - We have to obtain registration certificate from the NFMIMS website before the arrival of the vessels.

We have taken NFMIMS Certificate in the name of original importer and not second importer who by the copper under the High Seas Sale. The reason is that at the time of issue of NFMIMS Certificate, we have to mention foreign currency and in High Seas Sale - the invoice amounts under the INR.

Now, custom officer raised the objection that NFMIMS should be in the name of the last purchaser who buys under the High Seas Sale. They try to taking disadvantage of their positions which is comes around in Lakhs. The value of certificate is INR 500/- only and it is only to collect the date of metals imported in India.

Can anybody informed us the rules or notification to import metal / copper under the High Seas Sale ?

Regards,

Ritesh Dave

Post Reply

Posts / Replies

Showing Replies 1 to 2 of 2 Records

Page: 1


1 Dated: 11-12-2024
By:- Shilpi Jain

2 options - 

1. The High sea sale purchaser could write to the customs officer stating that he is paying in INR and getting an INR invoice and the form does not have provision to enter the INR. So what details he should enter to register. OR

2. Fill foreign currency equivalent amount of the INR paid (since the original importer will not disclose his purchase price) and when questioned this reason can be mentioned.


2 Dated: 15-1-2025
By:- YAGAY andSUN

High Sea Sales (HSS) transactions, particularly for non-ferrous metals, are subject to specific regulatory requirements, including DGFT registration under the Non-Ferrous Metals Import Monitoring System (NFMIMS) and the declaration of the correct value to Customs.

1. High Sea Sales Transaction

A High Sea Sale (HSS) transaction refers to the sale of goods that are still in transit and have not yet reached Indian shores. These goods are sold by a foreign seller to an Indian buyer before they arrive in India, but the goods are cleared by the buyer after arrival. In such transactions, the goods remain under the ownership of the seller until they reach the Indian customs port, but the buyer assumes the risk of the goods as soon as the sale is concluded.

2. Non-Ferrous Metals Import Monitoring System (NFMIMS) Registration with DGFT

As of the recent amendments, importers of non-ferrous metals such as aluminum, copper, lead, zinc, etc., need to register with DGFT (Directorate General of Foreign Trade) under the Non-Ferrous Metals Import Monitoring System (NFMIMS) before they can import such metals into India. This system aims to monitor and regulate the import of non-ferrous metals and ensure that imports are aligned with policy requirements, including the proper valuation and declaration of transactions.

NFMIMS Registration Process:

  1. Who needs to register?
    Any importer (including those involved in high sea sales) who is importing non-ferrous metals needs to obtain an NFMIMS registration from DGFT. This applies to both direct imports and high sea sales transactions.

  2. Steps for Registration:

    • Apply online through the DGFT's Online DGFT Portal.
    • Provide the required documents such as the IEC (Importer Exporter Code), proof of business, GSTIN (Goods and Services Tax Identification Number), etc.
    • The importer must specify the types of non-ferrous metals they are intending to import.
    • After the registration is approved, the importer will receive an Importer Registration Number (IRN) and other registration details.
  3. Validity of Registration:
    The NFMIMS registration typically lasts for a year, after which it needs to be renewed, subject to any updates or changes in the import policies for non-ferrous metals.

3. Value to be Declared to Customs for High Sea Sales

When it comes to declaring the value to Customs for High Sea Sale transactions, the Customs Department requires the transaction value to be properly declared at the time of clearing the goods.

Value for Customs Declaration:

The transaction value for goods in High Sea Sales is based on the actual sale price between the seller and buyer, which is commonly known as the High Sea Sale Price.

  1. Transaction Value (HSS Value): The value declared to Customs should include the actual purchase price agreed upon in the High Sea Sale transaction. This is the price at which the Indian buyer has agreed to purchase the goods from the foreign seller (or intermediary).

  2. Customs Valuation: According to the Customs Act, 1962 and Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, the value for Customs purposes must include:

    • The High Sea Sale price (including the cost of goods purchased under the high sea sale agreement).
    • The freight charges incurred from the port of loading to the Indian port (if not included in the sale price).
    • Insurance charges (if not included in the sale price).
    • Any other incidental costs incurred in transporting or handling the goods to India.
  3. Transaction Value Formula: The total value declared to Customs will be:

    Transaction Value=High Sea Sale Price + Freight + Insurance + Other Incidental Charges.
  4. Documentation for Customs: When the High Sea Sale transaction is being cleared at Customs, the following documents should be submitted:

    • Bill of Entry: The buyer of the goods in India needs to file a Bill of Entry, which will declare the customs value.
    • Invoice of High Sea Sale: The buyer should provide the High Sea Sale invoice, which clearly shows the sale price agreed upon between the buyer and seller.
    • Purchase Order and Sales Agreement: These documents help establish the pricing agreement between the parties.
    • Bill of Lading or Airway Bill: The original Bill of Lading or Airway Bill is needed as proof of shipment.
    • NFMIMS Registration Number: The importer's registration number under the NFMIMS system must be provided.

4. Customs Duty Calculation and Payment:

Once the Customs value is determined, Customs duties will be calculated based on the transaction value. These duties may include:

  • Basic Customs Duty (BCD)
  • Integrated Goods and Services Tax (IGST)
  • Social Welfare Surcharge (if applicable)
  • Any cesses or other levies that are applicable to the particular commodity.

The import duties are assessed based on the declared customs value (transaction value of the high sea sale) and the applicable duty rates.

Key Takeaways:

  1. High Sea Sales transactions for non-ferrous metals are subject to the registration requirements under the Non-Ferrous Metals Import Monitoring System (NFMIMS) with the DGFT.
  2. The High Sea Sale Price is the basis for Customs valuation. Additional costs such as freight, insurance, and other charges should be included in the transaction value for customs purposes.
  3. Importers must ensure proper documentation, including the High Sea Sale invoice, bill of entry, and proof of registration with NFMIMS, when declaring goods to Customs.

By following these steps, importers can ensure that they comply with the regulations governing High Sea Sales transactions and the importation of non-ferrous metals under Indian customs laws.


Page: 1

Post Reply

Quick Updates:Latest Updates