How does a high sea sale work, and who pays the duty?
The trader who bought the goods from the overseas supplier sells them to you while they are still at sea, by signing a high sea sale agreement and endorsing the bill of lading to you. You then file the Bill of Entry in your own name and pay the customs duty and IGST, and the IGST credit is yours. There is no GST on the high sea sale invoice itself. We check the papers, file the entry and deliver the goods to your plant or site.
When does a high sea sale have to be completed?
After the goods have been shipped and before the Bill of Entry is filed. For cargo arriving by sea the Bill of Entry is usually due before the vessel arrives, so the agreement and the endorsed documents need to be ready while the ship is still sailing.
What is MOOWR, and would it suit our plant?
MOOWR lets a factory work as a customs bonded warehouse. Imported raw materials and machinery come in with the duty deferred and no interest on it. Duty on the imported content is paid only when finished goods are sold in India, and it is waived on exports. There is no export obligation. It suits plants that import heavily, whether they sell in India, export or do both. We help you assess it and apply, and run the imports into the bond.
Should we use Advance Authorisation, EPCG or MOOWR?
Advance Authorisation covers inputs that go into goods you export. EPCG brings in machinery without customs duty in return for an export obligation. MOOWR defers duty on both, with no export obligation. The right choice depends on how much you export and how you manage cash, and many plants use more than one. Our trade experts will work it through with you before you commit.
Can you import second-hand machinery?
Yes. Most used capital goods can be imported freely, apart from a few restricted items such as some electronics, air conditioners and diesel generating sets. Customs expects a Chartered Engineer's report on the machine's condition and value, and we arrange it before the machine ships.
Can you move heavy and over-dimensional machinery by road?
Yes. We plan the route survey, the trailers, the national highway and state permits, the escorts and the unloading at your plant, and pack and insure the machine for the whole journey. Moves between your own plants are planned the same way.
Will our cargo be held at the port for BIS or other approvals?
Not if the checks are done before your supplier ships. Some inputs need BIS certification, an import monitoring registration, EPR registration or another approval before they can be cleared. The rules change often, so we check each product against the rules as they stand, not last year's list.
How do we move stock between our own plants and warehouses?
Within one GST registration, goods move on a delivery challan. Between two of your GST registrations, such as plants in different states, the move counts as a supply and needs a tax invoice. Both need an e-way bill, and we raise the paperwork with every transfer.
Which ports and airports do you clear cargo at?
Sea ports on both coasts, including Mundra, Nhava Sheva, Chennai, Tuticorin, Visakhapatnam and Kolkata, the inland container depots in the main manufacturing cities, and the air cargo terminals at the major airports. Imports and exports are cleared the same way at each, and the cargo moves on to your plant or your buyer with the same team.
Do you handle the export of our finished goods as well?
Yes. We collect from your plant, file the shipping bill, clear customs, deliver to the port inside the cut-off and book the freight to your buyer, with every shipping bill counted against your licences.