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Wednesday, August 16, 2006





Personal import through Post and Courier in India
One day my freind Mr.Venu asked me about customs formality to procure computer peripheral and electronic parts for personal use from the abroad. He
was surprised to know that through postal and courier service most of goods for personal use can be cleared without any problem.
The personal import combines power of Internet,E-Commerce and supply chain network of the post offices and couriers.It places you as retail customer at the core of decision making for importing goods meant for personal use.
The seller is a person from popular auction websites like ebay and Amazon.ThePayment is made through international cards or PayPal.The supply is effected through postal or courier services.
On your behalf , it is the Postal department or courier companies take clearace from the Customs authority.You are receiving your goods at your door step from postman or courierman after paying their dues.You need not to go the customs department to pay any duty . The customs duty ,if any,is collected by the postman or courierman.
No export-import code is required for personal importation.But there are certain restriction regarding importing through postal service and courier service in india.
First i will focus on postal import.

In India there is a network comprising of 1.55 lakh post-offices that could ensure delivery of goods into every nook and corner of the country.Further there is peneteration of Internet and mobilephone even in tier II and tier III cities. Therefore India`s fast growing middle class of 300 million can make use post and courier services to import and export goods for personal use.

Bonafide personal gifts without payment of customs duty:

The price declared by the foreign supplier on the postal parcel is taken as value to determine the customs duty on the bonafide gift. The freight and insurance amount is not included in the value of the gifts. No need to pay any customs duty for such bonafide personal gifts valued upto rs 10,000/-.
Consumer electronic goods:
No import licence is required for consumer electronic goods of CIF(cost+insurance+freight) value upto rs 2000/-.If any body import any electronic consumer%2

179 comments:

Global Tax Guru said...

procedure and duty liability of goods are same for both air and sea mail.you have cost advantage if you import thru sea.But only disadvantage that it may take long time to reach you.whether to import through air or sea is purely individual decision.i hope i have answered ur question.

Global Tax Guru said...

in addition to duty,you have to pay fine and penalty if the value of electronics consumer goods based on CIF basis IS Rs 3000/.
pl read my blog dated, September 05, 2006

Global Tax Guru said...

pl see my today`s blog on procedure for export through post

Global Tax Guru said...

i have seen the US postal link.It is not updated or may be omitted by oversite. Bonafide gift upto RS10,000/- except prohibitive category are allowed without any duty.
if you are not satisfied with above clarification.i will post you the detail of exact notification issued by indian govt

Pharao 2.0 said...

I bought a used laptop from
EBAY(USA)valued 399 USD.it is being posted thru USPS .I was unaware of the fact that I might be penalised!!
What are the taxes and penalties which may be put on me.
can you please suggest a way out as the item has already been shipped.

Global Tax Guru said...

you will receive a detention notice from the postal department as well as notice from the Customs authority.
Nothing to worry.You may personally visit to the foreign post office.Give representation to the Assistant/deputy commissioner of customs stating that the used laptop is for personal use and you were not aware that used laptop attracts fine and penalty.
A lenient view may be taken and goods can be released without any fine and penalty but duty may be collected.
further you can state in your letter to the Assistant/deputy commissioner of customs that the present market value of the similar/identical goods is so much.All this may help you to pay lesser fine and penalty.If the Assistant/deputy commissioner of customs ,in his discretion,is satisfied with your reply than he may released your laptop on just warning.This is done in exceptional cases.


How fine and penalty is imposed

The duty , fine and penalty is collected on assessable value of the goods.The assessable value is equal to CIF price and landing charge.The landing charge is equal to 1% of the CIF value.

The quantum of fine and penalty are decided by the adjudication authority. Before imposing any fine and penalty a notice is served to you.Based on reply submitted by you, the adjudication authority in his own discretion,impose fine and penalty.

Normally fine is not more than the margin of profit on the goods. The margin of profit is determined based on landing cost(i.e. assessable value +duty) and price of the goods in indian market.However, if you feel that you are paying more duty, fine and penalty then you can appeal against the adjudication authority order.

If you have sufficient evidence that you have been charged more duty. You can make request to the assessing authority for re-assessment and excess duty paid can be refunded to you by the customs authority.

Global Tax Guru said...

No IEC Code is required for buy an item for personal use in Ebay USA and bring it to India.

No licence is required to import
Porcelain show piece for your persoal or commercial use.

As far duty is concered , you have to pay @36.82% on value fixed by the Customs authority.

The customs authority may accept value declared by you if it is fair value and you have supporting documents such as invoice / payment proof through banking channel.

The postal wrapper is to be produced to your foreign exchange remitter as proof of import of goods for which you have made foreign remmitance.

Global Tax Guru said...

you have paid more duty if it is believed that your price is correct. it may be possible that the customs authority had come to conclusion that your parcel is not bonafide gift item.It also possible that some body might have imported the same type phone and declared higher price than yours to the customs.
the real reason can be ascertained from the customs authority only.

If you are confidant that your price is correct than you can apply for refund of duty to the assistant commissioner /deputy commissioner of customs within six months of payment of duty.
But if you produced commercial invoice then you have paid price for your phone and then it is not gift.Your invoice should says that no price is paid and it is decalred only for customs purpose then only it is considerd as free gifts.
Honesty pays by paying less duty if you are declaring that the parcel is purchased and not gifts.
Procedure to get refund is explained in my previous blogs and in reply to one question.

Mer vimal said...

hello, sir

This is too good to get knowledge about EXIM personaly , sir i want to know how one can personally export , we are the manufactures of handicraft item wall hangings and paintings.

how can i personally export through post or courier services ?

Ashish said...

Hi Ravindra,

i want to send ipod(mp3 Player)as gift to my wife in india worth 237$.I am going to purchage that online and vendor will parcel it as a gift. I just want to check whether she needs to pay any duty. if yes, how much?

thanks,
regards

Global Tax Guru said...

Dear Ashish,
The MP3 player attracts duty
@18.473%.This is also consumer electronics goods and valued more than CIF Rs 2000/-. Therefore you have to pay fine and Penalty in addition to duty.

But before making any shipment to India,compare the market price of same model in Indian market. you may search this information on the eBay,Rediff,yahoo,indiatimes or similar portals who are selling the MP3 player.It is wise if you procure in india itself if there is hardly any price difference between indian and foreign market.
ALTERNATIVELY,Pl write on the parcel ``price for Customs purpose and personal gift ``.
If you take indian market price as base then your price for custom purpose may be MINUS the duty amount(@18.473%), profit margin of 15%,fine of 20%.Normally no penalty is imposed on personal gifts.Hence the suggestive price for custom purpose may be approximate to half the price of SAME MP3MODEL available in the indian market.
Further if you can give me model number and make of your MP3 player then i may give you price at which the customs have already cleared the MP3 player.I hope i have answered you.

Global Tax Guru said...

There is variation in CUSTOMS LAW of various countries.Therefore ,it is important that you should ask your foreign buyer that what are documents and information required to clear in that country.

There is no restriction as far export of handicraft item wall hangings and paintings is concerened.BUT if any item is appears to be antique then NO OBJECTION CERTIFICATE is required from Archaelogical Survey of India .
The exporting parcel should contain Commercial Invoice and Packing List.
To receive foreign exchange, you have to declare export price in the PP FORMS.
The PP forms are required to be completed in duplicate for export by Post.

Export incentive in nature of DRAWBACK is also available for postal export.

Faster method of exporting through post


You can hand over your parcel to the Post office for export purpose then the parcel is presented before the Customs authority. Again parcel is re-open for customs formalties.

The other alternative is to first produced parcel to the Customs Authority and get it examined. The customs department will put a seal that it has been passed in the Customs.Then the parcel is handed over to the Postal authority.At this stage the parcel is not opened by the postal authority.Therefore, you know that parcel is not delayed by the postal authority on account of non obtaining Customs clearance.

Riaz said...

Hi Ravindra,

I am planning to send some jewellery to my wife in India.

Will this be a problem and what duty will need to be paid if value is over Rs 10000.

Also I am getting conflicting opinions on the internet where some people say that there is duty to be paid on gifts that are over Rs 5000.

Is Rs 10000 the duty free limit for all gifts?

Global Tax Guru said...

Dear Riaz,
yes, you can send jewellary as personal gifts of Value Rs 10,000/- without paying any custom duty.presently, free gift value is increased form RS 5000/- to Rs 10,000/-
However the value of RS 10,000/ is per parcel.It inclueds all containts of the parcel.Therefore you should send only jewellary of rs 10,000/- to avaial maximum limit of free gift.
if the value of the jewellary is more then Rs 10,000/- then you have to pay duty 16.2618% .The jewellary can be made of gold, silver,platinum and with or without Pearl,diamonds.
But IMITATION jewellary are charged duty @ 22.1136%.
pl write if you have any clarification

Global Tax Guru said...

i am very happy to know that my blog is beneficial to you.Still,we have to go long way to create awareness about usefullness of post and courier as mode of personal import and export.
Thank you for valuable feedback.
I hope that i shall make this blog more rich in relevant information.

Shiva said...

Dear Ravindra:

You mentioned Paypal as a mode of Payment. Can you tell us if Paypal payment both for import or export is legal in India.

I know Paypal is extensively used by ebay users, and also many people in India for buying personal merchandise (import). This imports are usely through post/courier and it is cleared without much investigation on the source of fund for purchase.

But I dont think Paypal is advisable for importing goods for commercial transaction.

Also in case of Export. The withdrawal of fund from Paypal Account is in form of Check from Paypal in INR.
- Can you tell if INR Payment is ok for accepting payments for Exports.
- Is there any way for getting FIRC for Paypal Check in INR.

I did talk to a local CA here, he is not very familiar with Paypal & Ecommerce, but told me is Paypal issues check in USD it will be ok.

Please do let us know what you think.

BEst, Shiva

Global Tax Guru said...

Dear Shiva,
You hava asked a very interesting question.The foreign remittance is governed by the RBI. You can get required information on The RBI website .There is a list of Banks and authorised agents who can handle Foreign remittance.You can get more information in Foreign exchang Manual on this subject. The FEMA is proper law for foreign exchange.
You can visit any Bank who deals in the foreign exchange,they are the right source for such issue.
There are issue of Money laundaring and convertibility invovled in the any money transaction.What ever transaction any body does ,the source of money should be legal and as per RBI guidelines.
you have to fill different type of foreign exchange declaration form for different mode of export .
It is better that you contact your Bank regarding foreign remittance through PayPal.
Pl share your information with me so we can go further regarding payment through PayPal.
I will write further on this topic as soon as i get some time.
Currently, i am in Chennai and busy in shifting to Gurgaon.
with regards

mib200 said...

What if we import NEW COMPUTER PARTS like MOTHERBOARDS, RAM, GRAPHICS CARD etc. Will they be imported to our doorstep normally or they will attract some duty or fine.
How can we import such parts without paying custom duty and other additional charges.
Also, if an item is delayed, where we should contact to know the current status of the item?

Global Tax Guru said...

Dear Manish,
All these items can be imported without any fine at your door steps, You have to pay duty as indicated in my Post.
You can track your cosignment/ parcel to check any delay.
with regards

needinfo said...

Hello Ravindra Kumar
i bought one ipod.iam planning give it as gift for my frends birthday.who is INDIA.the ipod is 30GB classi which is worth 249$.shall i send this directly from USPS as gift item? does my friend needs to pay any thing in india? please help me out.if my friend has to pay money how much it would be?
thank you
nagesh

Global Tax Guru said...

Dear Nagesh,
your gift item is borderline case to be fitted into Rs 10,000/- free gift.The dollar is fluctuating.The duty on this item will be approx 17.34%.The item being electorinics consumer goods and more than rs 2000/-(CIF).It will attract duty,fine and penalty.Other related information about quantum of fine,penalty etc may be seen from earlier post.But through courier you may save fine and penalty.The Indian law is not in favour of people importing through Post,even though it has largest network of delivering postal articles.

Unknown said...

Hi,
I'm a little confused here. I have seen some body jewellery at Body Jewellery Shop,which is an online shopping store. The items that I would like to buy would be charged in GBP. Would I have to pay any import duty for these itmes worth approx about 1600/-INR? This purchase would be for personal use and not for Sale. Please advice.

Global Tax Guru said...

Dear nagalaksmi,
You have to decalre that these body jewellery are other than gold and silver jewellary.This is to justify that the price of jewellary is only rs 1600/-.Normally ,if it is gold and silver jewellary then it will be detained by the Customs.The jewellary expert will check the value.Further,gold and jewellary in any form is not allowed to import .So,it will attract fine and penalty.The duty is 17.34%.If total duty is less than rs 1oo/-,then you need not pay.
You may be lucky,if you get the jewellary without much delay.There is lot of discretion involved in handling clearance.
Best of luck.
ravindra kumar

Unknown said...

Hi Ravindra,
I just ordered a car accessory on ebay and paid for it thru PayPal.Is that illegal?Its for my personal use?What kind of dutied or taxes will it attract?

Unknown said...

I have mialed a packet via USPS to India. It contains 2 jackets, a watch, and some inexpensive items like lipstick, socks, gloves, etc. The cutoms forms was declared at $109 and sent via USPS express mail international. Now the packet has reached Jaipur and sitting in the postal department. Upon inquiry they are asking to re-declare price of each item and pay customs as according to them only good worth Rs2000 are free. After reading on thsi blog i figured out gifts upto Rs 10,000 are free then why are these postal people asking for money. And on top of that the package has been opened and some itmes are missing from the list they have sent. Thanks for reading this and any advice would be helpful as how can the packet be retrieved from the postal workers without trouble/payment of money.

Global Tax Guru said...

Dear Vijayendra,

Except electonic item worth more than Rs 2000/- is not allowed without fine and penalty,in addition to duty. What is your item? Without knowing about your item ,it is difficult to comment.
You have to produce proof of import to your bank.pl consult your bank regarding remittance.Even though RBI is very relaxed for small remittance.
If car accessory for your own use
then you have to pay duty @17.34%.
if you go through my previous post,you will get fair idea.Specially comments section check for similar doubt.
NEED more detail for exact advice.
regards
ravindra

Global Tax Guru said...

Dear Veena,
In my opinion you should get all items without payment of duty.
You may write letter to Director (post) and AC/Dc(customs) if you have any doubt regarding missing containts and charged any duty on the goods.

If the parcel is insured then you may approach the postal authority for further guidance to get money on your lost item.
regards
Ravindra

Dr Hitesh said...

Hello Ravindra... Your blog and particularly this post is very informative..

But it seems your post ends suddenly from your last sentence "If any body import any electronic consumer%2.."

Also, why to pay fine or penalty for importing consumer electronic goods above Rs2000 and thats too for personal use ?

I want to buy an apple ipod from ebay worth around 200 $... What duties I will (or the courier) have to pay ? ( can i tell the seller to make it a gift to save duty ? )

Thanks.

Global Tax Guru said...

Dear Dr Hitesh,
Thank you very much for your feedback.Regarding import of i-pod.You have to make choice between courier and Post.
Any consumer electronics item as per Indian law above Rs 2000/-(CIF) is not allowed to import without fine and penalty through post.But,no fine and penalty ,if you import through Courier.The import duty @ 18.624% on i-pod is same for both Post and courier.

You have to pay more freight in case of courier but you save on fine and penalty.

Through postal only upto Rs 2000/- bonafide gifts of i-pod can be imported without any duty,fine and penalty.But in case of courier,you can receive gift of i-pod upto Rs 10,000/- without any duty,fine and penalty.

How and why duty,fine and penalty
on i-pod is collected on i-pod ? Answer to this you may find in my previous post,specially posts titled and dated :-
`` Wednesday, March 21, 2007
Customs duty after budget on electronics items imported through Post``, ``Wednesday, September 06, 2006
pl post me questions for further clarification,if you have doubt``,


``Sunday, September 17, 2006,

``Tuesday, September 05, 2006
The following items are not allowed to import through post``.

I hope that all above post will clear your doubts.
PL write to me if you have any clarification.

regards
Ravindra Kumar

Ray said...

Hi
How much will be the customs duty for a sound recording device ( digital 8 track sound recorder)
something like
http://www.sweetwater.com/store/detail/D888
In USA it cost ~ 700$ . Can my brother ship it to me as Gift ?
Also while calculating duty does the customs will use the listed price ~ 800$ or the actual sale price ~ 700$ normally available in most if the US shop.

best regards
Sup

Ray said...

Hi
How much will be the customs duty for a sound recording device ( digital 8 track sound recorder)
something like
http://www.sweetwater.com/store/detail/D888
In USA it cost ~ 700$ . Can my brother ship it to me as Gift ?
Also while calculating duty does the customs will use the listed price ~ 800$ or the actual sale price ~ 700$ normally available in most if the US shop.

best regards
Sup

Unknown said...

Hi Dr Ravindra,
I purchased an electrical item for my car thru PayPal and its shipped through USPS.I had asked the seller to have it marked as gift and less than $ 30.Will i have to pay penalty and duty?

Unknown said...

The car accessory is a pair of fog lamps which has has been marked as gift and value mentioned as under $30. It is coming thru the US Postal Service as a priority mail.
Do i have to wait for the bank to contact me regrading the payment thru PayPal or should i do this voluntarily?

Global Tax Guru said...

Dear Ray,
Being your item consumer electronics of value more than Rs 2000/-,you have to pay fine and penalty in addition to duty @ 34.130% for importing through Postal.But if you are importing through courier,then,only you have to duty at above rate.No fine and penalty.Of Course,you have to pay more on freight.Choice is yours.

As far value is concerned,Customs take only actual sale price.
If you declare as gift ,then ,also,you cannot get duty exemption of Rs 10,000/- as you are purchasing the goods.

Global Tax Guru said...

Dear Vijayendra,
You have to pay through Bank if you are purchasing and customs duty is also to be paid.The e-bay will take care of remittance part and guide you.
If you are purchasing then you have to inform your bank to avoid future query from RBI and income tax.I donot think any problem as remittance amount is too low.

Gifts are received free.No foreign remittance and duty upto Rs 10,000/- valued gifts.
regards
Ravindra

Saurabh said...

Dear Mr. Ravindra,
I have gone through the whole post as well as the comments.They indeed clarify some of my doubts but still I thought of writing since there are other issues i wanted to take ur opinion on.

I want to purchase a cell phone HTC advantage x7501 but it is launched only in USA but can be used world over since it tri band.

The cost of the phone is $ 899 . I have two options now:
1.)Get it couriered or posted.
or
2.)ask someone to carry it with them when they come here.

Please tell me in detail as to what tax/duty/penalty the case 1 attracts.

and

in the case 2 do i have to pay any duty?

also if the phone is not packed and the person coming to India opens it and gets it showing that he is using it...will it attract any duty?

Kindly reply.

Thank you

Saurabh

Saurabh said...

Dear Mr. Ravindra,
I have gone through the whole post as well as the comments.They indeed clarify some of my doubts but still I thought of writing since there are other issues i wanted to take ur opinion on.

I want to purchase a cell phone HTC advantage x7501 but it is launched only in USA but can be used world over since it tri band.

The cost of the phone is $ 899 . I have two options now:
1.)Get it couriered or posted.
or
2.)ask someone to carry it with them when they come here.

Please tell me in detail as to what tax/duty/penalty the case 1 attracts.

and

in the case 2 do i have to pay any duty?

also if the phone is not packed and the person coming to India opens it and gets it showing that he is using it...will it attract any duty?

Kindly reply.

Thank you

Saurabh

Global Tax Guru said...

Dear Saurabh,
Duty is 4% on mobile phone.Import through courier to avoid fine and penalty.
regards
Rvaindra

Saurabh said...

Thank you Mr Ravindra.
May i request you to kindly reply to the 2nd query...

Saurabh said...

Dear mr ravindra,
As advised by you i am importing it using courier service by fedex...could you also tell me is there anything special that must be mentioned on the packet like gift or something related to custom clearance etc on the packet or the price of the goods inside...Kindly enlighten all of us on the process.Also please tell us once the shipment arrives in india what must a person do like how should he approach the customs etc!

I am sure all the info u provide will help many like me who have zero knowledge about customs
Thank you

Regards
Saurabh

Global Tax Guru said...

Dear Saurabh,
If you are buying then you cannot declare the goods as gift.Declare actual price at which you are buying.The Customs and courier compnay have price of goods.
pl contact your courier company over phone for clarification as they are going to handle your goods before the department.
Regards
Ravindra

Saurabh said...

Hello Mr. Ranivndra,
As advised by you that the customs will be charging an overall 4% duty but as per my finding on the CBEC site at this link http://www.cbec.gov.in/customs/cst-0708/chap-85.pdf
under chapter 85 section 17 ie 8517 it says that telephones for cellular networks inshort mobile phones do not attract any duty ie they are free

kindly see that and confirm!

regards
saurabh

Rahul Sharma said...

Hi,
I am boy from INDIA and recently i have order 1 Apple Iphone from Ebay and the total cost for item is 470$ USD and i just know that seller has mark it as a gift but i dont how much price he has discribe on BOX it is coming via usps Priority mail international so sir is there any chance for customs or duty if yes how much duty i have to pay and How should i pay it do i go Forgine post office or INDIAN POST OFFICE

PLEASE HELP ME

Global Tax Guru said...

Dear Rahul,
duty is 4% on phone.Additionally,you have to pay fine and penalty for used goods.
it is long time before any action start.Pl relax!.contact me when you donot receive any communication,or,parcel,for further guidance.
best of luck.
ravindra

Saurabh said...

Dear Mr. Raghvendra
Kindly reply to Dec 25, 2007 12:08:00 PM ....As per CBEC site it is duty free ...what is the 4% is it some other kind of duty?

Rahul Sharma said...

Thankx for reply

Sir can you please give me your contact number I would really like to talk with you sir I am from Delhi sir if you would like to call me please fell free my number ((9810512149)) Thankx a lot sir for help

Global Tax Guru said...

Dear Saurabh,
It is correct that basic customs duty is nil only.But in addition to customs duty,other duty popularly known as CVD are also levied on any imported goods.
The CVD are excise duty,additional duty of central excise,cess,and,additional duty of customs in leiw of sales tax,etc,.
In case of mobile phone,all duties are nil except Additional duty of customs which is 4%.

pl go through CBEC website.cbec manual on website and informaion about all duties is available.
regards
Ravindra

Ankit Bhargava said...

Dear Mr. Kumar

Thanks for such a wonderful blog!

I am willing to import new Vaio micro computer from US which is worth $1099. I am ordering via Fedex. Could you please help in estimating the duties I will have to pay on this?

Thanks
Ankit

Global Tax Guru said...

Dear Mr.Ankit,
Thanks for appreciation.
The custom value is based on CIF (Cost insurance Freight)price of the micro computer.Therefore,assessable value on micro computer will be as:
Cost= US 1099,
FREIGHT= 20% of the cost or actual freight paid by you,lower of them will be taken for calculation,
Insurance= 1.125% of US 1099.

Add of all these three will get you CIF and then 1% on CIF .The final value is called Assessable value and duty @ 17.240% on this assessable value of the micro computer.You have to pay duty in Indian rupees.Normally your courier
company pay duty on your behalf.
Pl discuss duty amount liability with your courier company and make your decision before receiving goods from the FedEx.
warm regards
Ravindra Kumar

Ankit Bhargava said...

Thats a BIG hlp

Thanks

Anonymous said...

hi
i am planning to bring 4 ipod for my family use one for my dad one for my mother one one for sister and one for me, also one body massager toatal cost around $670 i have to pay any tax or i no need to pay any thing for the same.

Global Tax Guru said...

hi,
it is not clear whether you import through post or courier or bringing into india as personal baggages.
The ipod are charged 4% duty and body massager 21.522% duty.Bonafide gifts upto Rs 10,000/- is free through post and courier.Each parcel is treated seperat import.
Under baggage rule,there is allowance of RS25,000/- without duty.Any thing above this will be charged 35% duty.
regards
Ravindra

Anonymous said...

I have ordered gold clubs from US and they have sent it thru USPS. Will the parcel come thru FPO and how much duty should I pay. Will it be delivered at my residence.
Pls help.

Global Tax Guru said...

Dear anonymous,
The gold is considered as currency and regulated by the RBI.It has to be valued by Jewellary expert.Normally, basic customs duty on gold is charged Rs 200 OR 100 PER 10 grams depending whether it is gold bar,gold tola bar,etc.The duty on gold jewellary is 13.760% of the value.
Your parcel will be delivered at home.But lot of legal procedures to be followed.
regards
Ravindra Kumar

Anonymous said...

This has reference to my earlier query,...

********************
Anonymous said...
I have ordered gold clubs from US and they have sent it thru USPS. Will the parcel come thru FPO and how much duty should I pay. Will it be delivered at my residence.
Pls help.
********************

I am extremely sorry it's GOLF Club instead of GOLD Club.
Awaiting you early reply.
The online status of the parcel says "Status: Into Foreign Customs

Your item is being processed by customs in INDIA."

I stay in Delhi.

Pls help.

Global Tax Guru said...

Dear Anonymouse,
Gifts no duty upto Rs 10,000/-.For personal import ,duty @17.34%.Less than rs 100/- as duty amount not collected.
Regards
Ravindra

$DEV$-ROCKS said...

Dear ravindra,
I have purchased a remote control 6 channel helicopter which's declared price values is 200 usd. It has been shipped by using USPS international express mail. The fact is that i have been tracking it through usps but now it shows that it has already left USA on 13th but i have not yet got any response from the customs or the postal service. can u please tell me what import duty will be charged and penalty if any ??? and how will the process initiated as i stay in a city where there is no foreign postal office.

waiting for ur reply...

Global Tax Guru said...

Dear Dev,
Toys are charged duty @14.712%.personal import of toys @17.34% through post.But always lesser of two duties should be claimed.
It may take some time before it reach you ,as inland tranfer of parcel in India may take place through Rail.If you have paid for speed post,then you get tracking and fast delivery.
Wait some more time,it will reach soon to you.
regards
Ravindra

Anonymous said...

Hi Ravindra,

Ref: my earlier query regarding Golf Clubs.

You mentioned 17.34% duty.

The Cost was USD534+USD133shipping. They have charged me Rs.7780 duty. Is it correct. Pls help.

$DEV$-ROCKS said...

Dear ravindra,
Thanks for the support but can i trouble you a little asking you about if the indian postal service will pay the duty and cleared the producct to my doorstep and then i need to pay or i will recieve any forms or something from the customs and then i need to pay after which the goods will be cleared. as this is an USPS shipment. can i track it through indian post service.

thanks.
Dev

$DEV$-ROCKS said...

Hey ravindra,
since i was tracking my usps shipment. i check it on packagemapping.com where it showed that it has already entered into kolkata customs. But since i have not yet been contacted i am eager to know about my good. can you please help me with any contact no for my queries regarding this shipment. I am ready to pay the customs but it has not yet contacted me.
Thanks and regards.
Dev

$DEV$-ROCKS said...

INDIAN CUSTOMS ARE ILLITERATE.

i had ordered one toy remote controlled helicopter and guess what the appraiser says me in the postal customs office ,. He says., That you need to get an import licence for this product since this is an aircraft .. AIRCRAFT>>< heheh.. He says. If you import a kite also.. U need to give this licence. He showed me some act in His. trade policy book. where it says that helicopters less than 2000 kgs is restricted. But as per me this is an toy helicopter which . doesnt make sense.. and cannot accomodate anybody on board. wat the hec.. this stupid and illiterate customs.. do. is just ask for bribe,, SO guys if u import in India please prefer courier services like UPS OR FEDEX., bot not USPS or any other EMS Service since this can ..... get ur items blocked..

Dilip said...

I ordered a pulse oximeter(Medical equipment) online from China costing US $ 65. The device is for monitoring patients in my clinic.
The item was sent trough EMS China and was delivered to Mumbai customs on 24/3/2008.
However to date nothing further has happened.
What can I do to expedite matters.
Anticipated thanks
Dilip

Anonymous said...

Sir,

I am planning to buy mobile phones from china and the worth of 5 mobile phone is 1200 US dollars including shipping charges. I dont have any import license. And i need know how much i want pay customs. Can we able to import mobiles without any import license as it is of small quantity (i.e 5 mobiles). And my seller said he will decrease some amount for customs issue. give me an idea how to import that mobile phones and how much i need to pay customs Duty? please help me out..

Anonymous said...

sir,

i am going to buy 5 mobile phones from china for 1200 US dollars including shipping price. I dont have an import license and i am 0% knowledge in importing and about customs tariff . i didn't know how much i need pay customs to import this item. The seller said he will sent the items through EMS courier.IS there any problem Occur if i import this without an license. Seller said he will put least price for custom clearance if he does so any problem will occur here in india.. please help me out how i can safely buy those products and also how much i need to pay customs. And also tell me how i can buy mobile phones without paying any customs duty? Upto what value i can bring mobile phones without any customs duty..please help me out..

Global Tax Guru said...

Dear Jai,
Import of mobile phone is a regular activity.The Customs have price for all models .Accordingly they will charge duty to you.Your courier company will guide you for all procedures.Through post,electronics conumer goods of value RS 2000/- are not allowed.
You are advised to go through many post of this blog and question asked by fellow importers to get fair idea.
warm regards
Ravindra Kumar

Global Tax Guru said...

Dear Jai,
Import of mobile phone is a regular activity.The Customs have price for all models .Accordingly they will charge duty to you.Your courier company will guide you for all procedures.Through post,electronics conumer goods of value RS 2000/- are not allowed.
You are advised to go through many post of this blog and question asked by fellow importers to get fair idea.
warm regards
Ravindra Kumar

Anonymous said...

hey Ravindra
I want to purchase a digital camera from US (during my 10 days tour), which costs nearly USD 300. I am a resident of India. Will i be charged an type of custom duty or tax?

Global Tax Guru said...

Dear Sir,
You are covered under Baggage rule,if you are bringing along with you.There are free limit for bringing along with you.
If you import throuh POST and Courier,then,you have to pay duty.
regards
Ravindra Kumar

Unknown said...

i am from delhi i have ordered a pair of exhaust for my bike on internet, it is coming via usps the item cost me 460 dollars, do i need to pay duty if yes then how much n to whom? will the parcel be delivered at my door step or do i need to visit some post office if yes then which post office in new delhi? please help

Unknown said...

sir i am planning to import a wacom cintiq pen tablet in india its price is 67000 and in dubai its 55000 so i have bought it in dubai, and planning to send it through courier . how much duty will i have to pay

Global Tax Guru said...

Dear saddy,
expected duty is @17.240%. Your courier company will tell you rate of duty.
regards
Ravindra kumar

Unknown said...

sir i have been to dhl and fedex offices no one helped me out, they saying all will be depending upon the custom authorities. so pls can u tell me. its a electronic item like LCD monitor. costing in dubai around 50000 INR . sir please help me what to do? it will be used for educational purpose i am a student and require that stuff for my graphics study. please help me sir. is there any way how to save or bypass this duty i mean if i get any authorisation from anyone for not imposing custom duty.
in ur post u said that its 17%approx the i will have to pay 17% on 50000 pls help me sir.
i am so much confused

Unknown said...

sir i have went to dhl and fed ex none of them helped me out they said its in customs hand. so pls can u tell me how much exact duty i will have to pay. i am a student and it will be used for educational purpose only. its cost around 50000INR in dubai.
its a type of LCD monitor or laptop computer screen.
pls help me sir how much i will have to pay. i want the exact % of duty.
is there any type how to save duty?

Unknown said...

dear ravindra ji,
i would like to ask you one more thing that although my LCD MONITOR is 50000INR and noramally the normal LCD MONITOR comes of around 12-15 thousand if i declare the value as 15000 will it solve my problem? and i will import it through DHL or FEDEX and it will bes ent by my father so its clearly shows that its a gift and for personal purpose only.
no comman man will find out whats this every one will mark out that its a LCD MONITOR.
pls advise me sir.
i will be highly obliged as i am very much tensed.

Global Tax Guru said...

Dear Saddy,
Bonafide gift upto Rs 10,000/- is allowed to be imported without any duty through courier.
What ever value you declare,the customs authority is going to ascertain correct value and duty will be charged accordinly.
Further,the customs duty may be 31.703% for your product.
You are advised to consult your Courier company ,as this may be regular item for them.
Regards
Ravindra Kr

Shahul Hameed said...

Sir,
I recently bought some computer parts from USA and its in indian customs now. They sent me a memo - notice and requested me the receipt of the items including the postal receipt from the country of despatch. I have all these documents but they have requested to send me IEC code which i don't have. I have imported this for personal use and not for any re-sale purpose. So what should i do?

Secondly, I ordered a hairmax laser haircomb which is approx $410 for my personal use. How much do u think i will be charged and what formalities do i have to go through. Please give me an estimation and what can i do to reduce the duty for hairmax.

Thank you sir

Global Tax Guru said...

Dear Mr Shah,
No IEC required for importing goods for personal use through Post.

As far duty is concerned, if the goods are imported for personal use then duty to be charged @ 17.34%.

Warm regards
Ravindra Kumar

fibrebundle said...

Sir,
I live in Delhi. I am about to import a guitar from the U.S. I am paying the dealer via PayPal,
and he is sending it by USPS express mail. He has said that he will give me the tracking number, and that the package will be insured. The cost of the guitar is about 700$, and the USPS charge is 125$. I have the following queries: Where
will I get my guitar from, once it arrives in India? What is the clearance, customs procedure?
Hoping for a reply,
Abhinav.

Global Tax Guru said...

Dear Abhinav,
The duty on guiter @ 31.703%.The Postal department will collect duty before handing over guiter parcel to you.It will be cleared by Foreign Post Office ,Delhi.If customs department detain the parcel then you will receive notice by the Customs.
Regards
Ravindra Kumar

fibrebundle said...

Sir,
I am still a little confused. Once the parcel lands in India (it is coming by express mail, so it is by Air), does it go to the foreign post office, or the Speed Post office, or the GPO (general post office)? Further, is there a way that I can inquire if the parcel has arrived, and if so, which of these post offices do I contact? I will really appreciate if you could give a slightly detailed reply.
Thanks a lot,
Abhinav.

fibrebundle said...

One more thing, Sir. Do I have to pay any money other than the duty, say, in the form of some fine, penalty, etc?
Abhinav.

Global Tax Guru said...

Dear Abhinav,
Nothing except duty.
Ravindra Kr

Global Tax Guru said...

Dear Abhinav,
You may contact Foreign post office at PALAM,Or,local post office as per address.
Regards
Ravindra Kumar

Ray said...

Usually when things come from abroad by postal service then the material first goes to Indian Govt."Postal Customs" office ( can be inside GPO, or another postal office, ask in GPO where is the postal customs office). "Postal cutoms" is a department of "Indian Customs" inside postal department , delaing only with postal item came from abroad. Once customes decide that they need to take tax , they inform postal department ( in the same floor) ..Then you get a postal letter asking you to come there , and once you go there they will ask you what you have inside..( this is kind of cross check whether u are saying correct things,..).etc etc. and then they will open your box in front of you and check and will will take duty from you. A customs Gp C officer called "Affraser" decide the duty amount, it doesnot matter that you bought something from USA on sale say a MP3 player for 20$ which actually cost MRP 150$...Appraser will decide what price it should be ...they can check in the web for that model and decide its MRP as the real price i,e 150$, not the real 20$ that you paid unfortunately, even you have actual cash memo.
Also remember since your item came in USPS Express mail, ...USPS express mailis equivalent to a EMS, so postal department immediately ( within 24 hours) will send you a "EMS urgent letter" asking you to come and release. Usually they are fast, but unfortunately customs department is very beurocratic and slow . Many times they ask you to come another day , you come that day and they say no come on next day, they ask again come next week etc etc....
Good luck

Global Tax Guru said...

Dear Mr Ray,
I partially agree with you.My purpose of this blog to create awareness about the Post and courier as medium of import-export for gifts and personal use.

The MRP price are not value for customs purpose.Even to calculate ,excise duty on some of imported goods in India,based on MRP,there is abatment in the Price.In some case even it is around 35%.

The Customs Value are price at which goods are sold in normal course of trade,where buyer and seller are not related.If related then ,it is examined by the Customs.

You are advised to go some of posts of this blog which are dealing issue of Valuation in detail.

Thank you very much for your feedback and comments.
warm regards
Ravindra Kumar

Ray said...

Dear Rabindra

Thanks a lot, you are right ...There is much more on top the the MRP. its really frustating how Indian customs extort common people who just want to buy simple personal things from abroad.....

Its not the duty...people are ready to pay duty...its uncertainty, lack of information, hopeless work culture...everthing added up...

I do have experience for few years dealing with customs in various country (India, USA, Israel, UK, Sweden ) mainly for personal import from ebay, amazon, gift from friends. ..I must say I never saw such a horrible department like India Customs...one should know really in details the rules before buying something from abroad...also has to know how to handel those people...otherwise it will be a hedache later. To my experience.....
1) For personal import from USA, Europe if the price is not a constrain use private courier ( UPS, FedEX etc)...UPS/FedEX release everything on behlaf of you,...you just have to pay ..and also valuation of the goods (by Affraiser) is very starightforward ...most times just based on what written on box, the customs even dont bother to open manytime ...while when you use postal mail(normal mail, air, surface, EMS, USPS..) ...you fall pray to customs department and its complex rules and it will be nightmare.....

Regarding Abhinavs enquiry..on tracking ....since ur shipment is coming by USPS Express mail...you should have a USPS tracking number( ask the seller for it..) ...Then go to USPS website and track that number....u will able to see where is ur package now...and once it enter into customs , whether its held , released etc...

Good Luck

fibrebundle said...

Dear Mr. Ravindra,
I think you have done us all a great service. If not for your effort, I would
probably have not dared to go ahead and import the guitar. However, I am a lot
less suspicious about our local govt.
services, and so I have finally ordered.
Thank you as well, Mr. Ray.I appreciate your comments as well. I will be on the lookout for the speed post letter informing me that my guitar has arrived.
Thanks,
Abhinav.

Global Tax Guru said...

Dear Abhinav,
Thank you for your appreciation.Pl share your experience of importing and receiving guiter as done by Ray.
regards
Ravindra Kumar

Anonymous said...

Dear Ravindra Kumar...
Well...This is a great blog...My brother who works in US is planning to send me a " Apple Ipod nano " worth "$199" as "Gift" through courier...So do i have to pay any duty for receiving "Apple ipod"...Pls..Your Reply will be much appreciated...

Global Tax Guru said...

Dear Vinod,
The value of this Ipod is very near to exemption limit .The legally any gifts valued less than Rs 10,000/- should be without duty .You are advised to check with the courier company ,whether they can get this clear without any duty.It may be regular item for courier company.

warm regards
Ravindra kumar

Anonymous said...

Hello, Mr. Ravindra.
I had posted before regarding a guitar that I have imported through USPS Express Mail. I have been tracking the Package, and the USPS site says that the package has arrived in India, and is being processed by Indian Customs. What should be my next move? Should I pay a visit to the Foreign Post Office? If so, then, when?
Abhinav.

fibrebundle said...

Dear Mr. Ravindra,
This is regarding my previous post. I had mentioned that I have imported a guitar through USPS Express Mail, and the USPS site says that it is being processed by Customs in India, having reached India today (25th). I forgot to mention that the guitar has been imported from the U.S., and that I live in Delhi. I have been told that the Foreign Post Office is near Bal Bhavan, ITO. Is this where I need to go to clear customs and get my package? If yes, when do I go and what papers, etc. do I need to carry?

Unknown said...

Dear ravindra,
Your blog is most definetely educating for me considering im a housewife and am home24/7..
I placed an order for clothing and accessories thru the Victoria secret website, which valued at US $224...this was inclusive of shipping and was sent by UPS... To my surprise today when the package arrived I am asked to pay Rs 2200 as import duty...Is this right..? A friend who ordered along with me clothing and accessories for $104, is also asked by UPS to pay Rs1500...Im confused... and worried since Ive ordered for another dress which totally valued at $105..Do we still have to pay after paying shipping for the same..Who can I speak to?
Thanks
Mrs Sistla

Global Tax Guru said...

Dear Mrs Sista,
Import duty on goods imported through Post for personal use is around 17.34%. The duty is charged on assessable VALUE,which is calculated by adding 1% on C.I.f value of the goods.
if u think it is case of excess duty,you should not accept the parcel,ask for re-assessment to customs.
Detail procedures is given in this blog for re-assessment of duty.

warm regards
Ravindra Kumar

Unknown said...

Thank You Mr Ravindra for the quick response..
Unfortunately, I was told by UPS that I would need to pay Rs 2200, which is 34% import duty for the package since it is not a gift but for personal use, and if I donot pay the same immediately, the same will be sent back..
I have paid the delivery boy the same, since I have been anxiously waiting for the same. Is there anyone that I can contact to bring this to their attention for a refund of the excess that I have paid..?

Thank You,
Mrs Sistla

Ray said...

Hi Monalisa

I think you can send a email to UPS asking clarification, on which head they took duty 0f 34% for a cloth knitted apparel/item and why they should return you the money in case it is above the specified rate. If the UPS in Delhi dont reply (unfortunately all this professional American companies Indian stuff working in India are very unprofessional and often rude..which is really strange..I have bad experience with FedEx guys in Calcutta..when you shout them...saying you are going to complain to USA...then they start to work) then send a complain letter to UPS head office in USA. They really take things seriously and will instruct the Delhi office to respond.

Pl have a look in the Indian customs website that clarifies all the duty on vaious item when you import things( chapter 1 , chapter 2 etc...)
http://www.cbec.gov.in/customs/cst-0708/cst-main.htm

Also specially this page says that the duty on knitted cloth apparel is 12.5% of the value.

http://www.cbec.gov.in/customs/cst-0708/cst-main.htm

Rabindra can clarify more (I dont know about this particular information) ..as you are not a registered importer , rather importing for personal use...whether the same duty listed their is applicalble or something another need to be addded.

When you write the letter to UPS , use the Customs notification chapter no(chapter 61 , section XI for knitted cloth apparel) to address the issue.

Try to buy things from eBay USA ( very easy to make account, create "paypal" account using your credit/debit card, extremely safe, and start to buy things sometime at throw away price....).as things are much more cheap their...so you pay less duty...and also sellers are more friendly and sometime will be happy to assist you and will send things as gift.


best regards
Ray

fibrebundle said...

I wish to share my experience about importing a guitar from the U.S. by USPS
Express Mail. I had absolutely no problems at all, and everything went very, very smoothly. I had ordered for the guitar on the 20th of September online, and had paid the dealer through PayPal. The guitar was dispatched from the U.S. on the 23rd, and I was given a tracking number. To my pleasant surprise,
the USPS website informed me that my package had arrived in India on the 25th, and was being processed by the Indian customs. I had been informed by Mr. Ravikumar that such parcels usually reach the Foreign Post Office, so I called up their inquiry. A very polite lady told me to call up the Speed Post Office, where she said the parcels coming via USPS Express Mail arrive. I called up Speed Post, they checked my USPS number, and informed me that the parcel had been sent to the Customs at the Foreign Post Office. I called up Foreign Post again, and the polite lady informed me that the parcel must have arrived, but probably had not been listed on the computer. She asked me to call up the next day. The next day, I called up again, and she informed me that my parcel number had been entered, and the parcel had been submitted to the Customs. The next day was a Sunday, so I called up on Monday, and was told that it was still waiting for custom inspection. The next day, on Tuesday (the 30th of September), I personally went to Foreign Post Office, where I found out that 31.7% duty had been imposed on the guitar, based on the invoice price the dealer had attached. No extra charges had been imposed, and the package had not even been opened for inspection. I told them that I was ready to pay, and if I could take it with me. The customs officer was a very polite and helpful lady, who told me that the official procedure was to send it through post, and it would reach my local post office. I told her that I needed the guitar urgently for a performance (it was not true), and she asked me to contact a certain officer in the same building. The officer asked me to write a request letter, which I did, and asked me to attach a photocopy of my ID proof, which I was carrying with me. I attached it, and they released the parcel immediately, after I paid the required duty at a counter.
The Foreign Post Office was a very messy, dingy place, but fortunately, people were helpful, and I had no problem whatsoever. In a nutshell, the guitar was in my hands precisely one week after it had left the U.S.
Abhinav.

Global Tax Guru said...

Dear Abhinav,
Thanks for sharing your experience with us. It will act as reference for others too.
warm regards
Ravindra kumar

Unknown said...

Dear Ravindra,
I have a problem in front of me. I have purchased a Car tail lamp on ebay australia, and paid 239 Australian $ + 89 A.U$ Shipping for it through paypal(I was debited 13.5 K INR on my card). The item was shipped out of Taiwan through EMS International on 2nd Oct. I was tacking the item on Chungwa post of Taiwan. The item reached Mumbai on 3rd Oct,with comment Non-Dutiable and send the Bangalore the same day. As i did not find any update after this, i called EMS Mumbai to check, and i was told the iteam is Detained by Customs Bangalore, and they have given me the customer care numbers. As it was a week end i could not do any follow up on this.
What should i do from here on, i need to follow up on this tommorow9Monday).Why is the item detained. Is there a duty on this item, if so what will it be.Will the duty be charged on the Value of the item in A.U $ or INR.Is there any other surprises i need to expect when i contact them.
Your quick response will be of great assistance.

Global Tax Guru said...

Dear Vinod,
Need not to worry.Produce value evidence before Customs and get duty charged.
Import duty on goods imported through Post for personal use is around 17.34%. The duty is charged on assessable VALUE,which is calculated by adding 1% on C.I.f value of the goods.
You can visit PAD ,Customs ofiice,Bangalore. Duty will be charged in Indian Rupees.
warm regards
Ravindra Kumar

Ray said...

Dear Rabindra

My friend will send me a panasonic DECT phone set marked as "GIFT" and costing (declared value) - 60$+ shipping 35$ from USA through postal Express mail (USPS). Do I need to pay any Tax ? How they count the values of the item for gift for taxation.

best regards
Ray

Anonymous said...

hey..how do you guyz ship the iteams, i know how to buy the products but the thing is i cant ship the iteam or good that i want,so can anyone tell me about shpping through any mode, for example i bought a laptop from ebay okie! so i want to ship it through EMS, could you tel me how will i send through EMS? hope you guyz understood my point!

warm reagrds
shunaan

Unknown said...

Dear Mr.Kumar,
Thanks for your advice, i did get my stuff with a custom duty of 700 Rs. I did have to do lot of follow ups with the postal dept for the status.
I have done another purchase from china. It is a TFT screen for a car headrest. The item has a value of 50$ declared, and it is marked as a gift. What would be the duty on this item.

Unknown said...

Hello Sir,
I recently bought a iPhone from eBay.com. The seller is in the US and is shipping the item through FedX.
The item price is 300$. I am worried if the customs will cease it. Can you kindly tell me how much import duty i wud have to pay for this iPhone(300$)
Thanking You

Anonymous said...

Dear Mr.Kumar!
I oder a pair of TENNIS SHOES prise 89.95 USD from USA Tennis Wear House using Federal Express,as it is came to Chennai i was inform to pay taxes RS.2085/- is it correct,and how much if it not i have to pay?
Alex

chinki said...

Dear Mr. Kumar,

I want to order some clothes from an online store and get it gift-wrapped. The cost is around $400 and it will shipped via the UPS. It is for personal use. Do you know how much duty i will have to pay on those and will i also have to pay any brokerage fees to UPS? Can you please tell me?

Anonymous said...

Dear Ravindra,

Your blog is of great help to people who are new to importing goods for personal use. Thanks for the wonderful effort.

I have a query and would be obliged if you can shed some light on it. I am about to receive a digital camera as a gift which would be mailed by a web hosting company named rapidshare as part of their reward program.

The value of the camera as saw in some some websites is in range of Rs 8000 - 9000 give or take a few.

I dont know how the parcel will arrive by courier or post so will I be asked to pay any duties as such as this is purely a gift and I am not paying any money for it.

Many thanks for your comments.

Global Tax Guru said...

Dear Mr Keshav,
Through courier consumer electronics upto Rs 10,000/- received as bonafide gift is without any duty. But through postal , CONSUMER Electronics goods upto Rs 2000/- (C.I.F) is allowed without any duty .
Let us wait for arrival of your gift into India for further action.
Regards
Ravindra Kumar

Global Tax Guru said...

Dear Chinki,
Garments through Postal for personal use may attract duty @ 17.34%.
Regards and wish you a happy new year.
Ravindra Kumar

Global Tax Guru said...

Dear Alex,
The Shoes attract duty @31.703% of assessable value.The C.I.F(cost,insurance ,freight) + 1% C.I.F equal to Assessable value of goods.Convert your price into assessable value in Indian rupees and get fair idea of duty you are supposed to pay.
Regards and wish you a happy new year.
Ravindra Kumar

Anonymous said...

Dear Mr. Ravindra,
Thanks for your information.
It looks like that
I may have to pay duty on the digital camera as its price surely exceeds Rs 2000/- and it will in all probability be sent by post as that would be cheaper than courier.
I read somewhere that duty for consumer electronics goods is around 30% of the cost.
Is that a correct figure?
Regards,
Keshav

Global Tax Guru said...

Dear Keshav,
It is 31.703% of assessable value.
Regards
Ravindra Kumar

Anonymous said...

Ravindra.. My package sent through USPS..
status - Out of Foreign Customs, December 19, 2008, 4:40 pm, INDIA

How long will this take to come to chennai.

Anonymous said...

Dear Ravindra,

First of all I really do appreciate the kind service you are doing. Happy New Year wishes for you and your loved ones!

Lately I've been planning for a projector to use as home theater, but found that though good brands are selling projectors in here, but they are mostly obsolete models and they have no plans of introducing new and better ones in near future. The one I'm planning to buy has MRP $699, but selling online for $565-$590 at big online stores like B&H, Buy.com, Office Wonderland, etc. Even in India, there is a difference of Rs. 2000-4000 between MRP and actual sale price. Now my queries are as following:

1. What shall be duty (plus fine & penalty) chargeable to me for importing a projector for personal use?
2. Is there separate duty for importing LCD or DLP projectors? If yes, how much for each? The reason I'm asking this is because a Panasonic dealer told me that I will be charged 4% tax for LCD projector, but 12% for DLP projector in India. I'm not sure on the authenticity of his claim.
3. If I buy from online stores, will duty be charged on MRP or actual invoice value?
4. Will it be of any use, if I ask one of my friends in US to buy one and then Courier it to me marking it as a Gift?

An early response shall be appreciated.

Thanks & Best Regards,
Arminder

Raaga said...

Hi i am purchasing a cell phone from uk for which i will be paying 300$ usd including shipment cost, product will be shiped thru fedex, can you tell me how i have to pay the tax in india, I heard total tax will be 31% for product cost (excluding shipment cost) is it true or are there any other payments required?

Global Tax Guru said...

Dear Raaga,
The cost also includes shipping.You have to pay duty only. The shipping cost upto Indian border only to be included in the Cost of camera.FedEx will have standard shipping cost from foreign buyer location to Indian arrival port. Inland transportation cost is not included in the cost for paying duty.
Regards
Ravindra Kumar

Anonymous said...

Hi I have purchased an astronomical telescope from HK and dealer sent it through TNT but after arriving in India my agent called me and said that you have to pay the fine because you dont have the IEC no. and that they will check the value again as they think it is lower than it should be.It is already more than 2 weeks.Any dea how I can get my shipment safely.
Many Thanks

Global Tax Guru said...

Dear Sir,
NO IEC for personal import .Value evidence may be your purchase invoice can be produced before authority. Final decison on value is of Customs department only.
Regards
Ravindra Kumar

Anonymous said...

Dear Sir Many thanks for the reply regarding my query posted on Jan 15, 2009 7:36:00 PM.
But TNT agents already paid 10000 INR as Fine and Penalty imposed by Assistant Commisioner although it was a personal import and now I have to bear the charges 10000+4106 duty.
Is there any chance that I can pleade my case to the customs and get back the Penalty that I have paid.
Thanks
Anand

Anonymous said...

Dear Mr. Ravindra,
Your blog is really wonderful for providing wealth of information to people. I have a question which I would like to ask you and be grateful if you can enlighten me in this regard.
I work from home providing web based consultancy services to customers outside india. I get paid in USD in my paypal account.
I want to know whether I need an Import Export Code (IEC) to carry out such activities.
As such I had read somewhere that for a service to be qualified as export the payment has to be in foreign currency. I am receiving payments in USD in my paypal account but when I transfer the fund to my savings account through wire transfer the money is converted by paypal from USD to INR and then transfered to my bank account.
So I am a bit confused whether
this qualifies as export because payment to my bank account is in INR and not foreign currency.
Thanks for your time.

Global Tax Guru said...

Dear Mr Deepak,
You have to pay service tax for export of service,even if money is received in indian currency.The tax is on activity of consulting and receipient is located outside India.
Regards
Ravindra Kumar

Anonymous said...

Dear Mr. Ravindra,
Thanks for your information.
Can you please tell me whether I need an IEC code for carrying out
export of service to customers outside India.
regards,
Deepak

Global Tax Guru said...

Dear Deepak,
You should get IEC for export of services.see link of dgft on my blog for procedure to get IEC.
Regards
Ravindra Kumar

Anonymous said...

I have purchased a camera tripod from China through EBAY, now the parcel is handed over to customs at Mumbai on 22nd Feb2009, How long i will take to clear from customs? please help me in this regard

Anonymous said...

Hello Ravindra,

Your blogs and information are very useful for many people. I'm planning to import Laptops from US through Post / courier. Could you please tell me how much would be the import duty. Do I need an IE Code / Any license. Can I import the Refurbished / Reconditioned laptops. Will this attract any fines/fees and customs? Please let me know.

Thanks for your details

Suresh

VJ said...

You have mentioned at several places that gift items are duty free upto a value of Rs 10,000. However, the Postal department keeps denying that, why? Who can we complain that to? How can their acts be straightened out? Why do they not obey the rules and regulations? I sent a parcel from US and it is again sitting at Jaipur as those people need custom duty for items above Rs 2000. Ridiculous! I think those people just want to fill their pockets. Would you know of anyone (Postal department, Jaipur) who would listen and rectify the issue? I would appreciate your help/input on this.I am appalled with their behaviour..... Either these people are ignorant about the rules and regulations (or at least pretend to be) or all they care is money, no matter how much anxiety it causes the customers.
Thanks!

Unknown said...

hi,
i want to import one mobile phone from uk to india through popular online shopping site for personal use. It is worth GBP 350 (About Rs.27000). The shipment available is DHL. What kind of duties and taxes will be applicable on this? What is the process to pay duties? Will DHL facilitate payment of customs?

Regards

Ajay

karan said...

i have been ordered uniden radio scanner($82+$42 ) from usa.
The tracking info shows below.

Is this shipment detained by customs?
Now the tracking shows like below..
whether it released from customs or not? why it is moved from calcutta to chennai ?

May 01, 2009 8:44 am CHENNAI (MADRAS) PARCELS, Into Foreign Customs
May 01, 2009 8:39 am CHENNAI (MADRAS) PARCELS, Arrived Abroad
April 29, 2009 11:37 pm CALCUTTA PARCELS, Into Foreign Customs
April 28, 2009 12:30 pm CALCUTTA PARCELS, Into Foreign Customs
April 28, 2009 12:30 pm CALCUTTA PARCELS, Arrived Abroad
April 25, 2009 12:45 pm ISC NEW YORK NY(USPS), International Dispatch
April 24, 2009 4:50 pm DULLES, VA 20101 Processed
April 24, 2009 9:48 am ARLINGTON, VA 22203 Acceptance
April 22, 2009 3:37 pm WASHINGTON, DC 20036 Electronic Shipping Info Received

Vinod Nair said...

Hi Ravindra,

Great Blog...I am importing a battery called as "Pandora battery" from USA which costs about $39.99. As per your information in your blog..consumer goods up to Rs 2000 can be imported without paying any duty. So do i need to pay duty on this one.??? Your reply will be highly appreciated sir.!!

dinesh said...

Dear Ravindra Kumar,
I firstly thank you for providing a valuable forum about import and export matters.
I like to import Pedometers and other small electronic health gadgets from china for furthur resale in india. I want to do do it in a cent percent legal manner by paying customs duty etc. Since the item sizes are small qty upto 50 can be imported by courier.
Kindly guide me on how to go about it and the procedure to be followed.Is there a need to take prior permission or can I pay the duties when they arrive in India?

Please give your valuable advice

dinesh

dinesh said...

Dear Mr.Raveendra,
Thank you for your valuable inputs. I wish to import small electronic health gadgets from China through courier for purpose of resale. I want to do the import legally by paying duty. Do I need to take prior permission for import? Is there any limit upto which I can pay through Paypal without permission from RBI regarding forex? kindly guide me

Regards
dinesh

Anonymous said...

Dear Mr. Ravindra,
i read your blog comments they are very useful but still i have some doubts and i will be very thankful if you clear them,

I live in Maharashtra, Pune.

I am importing a GPS device which is receiver + datalogger from ebay the link is-

http://cgi.ebay.co.uk/HOLUX-M-241Bluetooth-GPS-Receiver-and-Data-Logger_W0QQitemZ280347507325QQcmdZViewItemQQptZLH_DefaultDomain_0?hash=item4146037a7d&_trksid=p3286.c0.m14


The price of the item is $108, i want to ask that how much import duty + custom i will need to pay if i import it through courier and how much duty + fine + penalty if i import it through post.

The CIF will not be more than $150 in any case.

Please reply,
Thank You,
Akshay Tate.

Anonymous said...

ebay india has introduced global easybuy so they take care of doing custom clearance and ship items from international seller directly to you

www.ebay.in/globaleasybuy

Anonymous said...

Hello Sir,
I have been importing hobby items purchased through ebay and clearing them through the customs after personal apperance every time I get a Call Memeo. I beleive that PAD has me marked and every time I am served a call memo whereas few others get thier items delivered at thier door step without much hassle.
I would be obliged if I could know whether personal apperance is mandatory on receivg the call memo or can I send the requested documents through registered/speed post?
Thanks and regards

Global Tax Guru said...

Dear sir,
You can send documents along with letter addressed to AC/DC requesting to release based on these documents.
Regards
Ravindra Kumar

Anonymous said...

Thanks Mr Ravindra,
Your help is appreciated

MANISH GUPTA said...

hhi mr ravindra
i want to import mobiles from dubai to india for personal use. does i liable any duty to the custom if i bring it through courier . the value of goods Rs 25000.

reagrds

manish

Global Tax Guru said...

Dear Mr Manish,
You have to pay duty for mobile. Mobile import is not allowed into India ,if phone is not having IMEI.It will be seized. Therefore, you check your IMEI.
Regards
Ravindra Kumar
www,globaltaxguru.in

Global Tax Guru said...

pl read it as www.globaltaxguru.in.
Regards

Unknown said...

hi sir,

i am willing to import computer component to be speific it is a mother board (EVGA X58 CLASSIFIED) which is priced 400$ in us if i buy it via ebay global buy it would cost me 25000 rs with out tax.

i dont know how much tax and fine would be added and it is for personal use and it is not available in india.
sir i need your help would be much useful

Anonymous said...

Dear sridhar,
Duty on mother boards for computers is @ 12.827% of assessable value, classified under CTH 84733020.
Pl visit my website www.globaltaxguru.in for know duty on lcd tv etc.This site is integrated with ebay and amazon.Still under development and testing.It will show you what is best way of importing ,such as courier, postal,air,sea or baggage

Pl give me your suggestions for making site user friendly.
Regards
Ravindra kumar
www.globaltaxguru.in

Global Tax Guru said...

Dear sridhar,
Duty on mother boards for computers is @ 12.827% of assessable value, classified under CTH 84733020.
Pl visit my website www.globaltaxguru.in for know duty on lcd tv etc.This site is integrated with ebay and amazon.Still under development and testing.It will show you what is best way of importing ,such as courier, postal,air,sea or baggage

Pl give me your suggestions for making site user friendly.
Regards
Ravindra kumar
www.globaltaxguru.in

Anonymous said...

Hi Ravindra,

Thank you very much for taking time to address people's question. I have a question that has been partly been answered in a number of places, but nevertheless here is what is my problem:
I am planning to send a gift to India to one of my friends. The gift is an External Hard Disk Drive and a USB flash drive (bought from Amazon.com and with a cost of about 140$). It costs less than 10,000 Rs and is a benevolent gift. So I think it is exempt from duty. I am planning to place the original purchase receipt and also a greeting card inside the same package (since it is a birthday gift) and send it via the postal system. Do you think it should reach there fine without any customs issue?

Thanks,
Bharat

Unknown said...

I have bought a graphics card from ebay USA at 289USD. Will i have to pay any custom tax etc. for that? I paid through Paypal and it is coming by USPS Priotity Mail International.

Ravindrak kumar said...

Dear Mr Arindam,
Rate of duty @ 14.712% ( If imported through post for personal use.
You can see other goods duty ,if imported from ebay ,like lcd tv ,mobile phone, mp4 ,etc. Your item being part of computers,will take some more time to be added into wesite www.globaltaxguru.in
Regards
Ravindra Kumar

Unknown said...

How do i know if the package is being detained by the customs or not? Basically, when should i start worrying?!!

Global Tax Guru said...

Dear Mr Arindam,
If Customs doubt value or need information about product then they may detain and issue notice to you.
There is no need to start worrying. It is their duty to assess correct duty.If you need my guidance, pl write to me.
Regards
Ravindra Kumar

Unknown said...

Dear sir i have bought a RC 6 ch Helicopter on internet from USA it has reached Delhi and is with foreign post office custom office they sent me a letter on 14th jan . and asked to produce some documents . i did that but now they say there is some law that says you cant get RC equipment . and they are asking me to get NOC from ministry of Aviation . i tried to tell them that what i have is just a toy and one can get them in Delhi in regular shop .. but no they don't want to listen to logic
what do i do now i have made 3 visits to custom office already

regards

Anurag

Global Tax Guru said...

Dear Anurag,
If you can forward scanned documents related to your import including technical documents, i may guide you. Otherwise, it is not possible for me to comment any thing.
Regards
Ravindra Kumar

Unknown said...

Dear Ravindra Kumar jee

i have posted some documents to you


from my Email account as attachments

regards

Anurag

Unknown said...

Hi,
One of my friend is sending me IPOD touch from Spain. Its value there is 179 Euros. Indian market price is nearlyly Rs 12,000 approx.

I want to know how much custom duty will be levied on the same. And if he pays the tax there do i have to pay the tax in India too. Pls suggest.

Thanx & Regards,

Sushil

dinesh said...

Dear Mr Ravindra Kumar,
I want to import Pedometers and other small gadgets from china By Courier for further sale in India. What procedure should I follow to carry out this biz legally.

Ravindrak kumar said...

Dear Mr Dinesh,
Pl see my website ebay.globaltaxguru.in ,or, www.globaltaxguru.in for all your queries

Send me your feedback and recommend to all your friends,if you find useful.
Regards
Ravindra Kumar

Global Tax Guru said...

pl see website www.globaltaxguru.in. pedometer is importable without any licence, you require IEC ,duty may be taken as 21.53 % .
Regards
Ravindra Kumar

rushil said...

I want to pay for an item through paypal on ebay.com.Approx 20 USD including shipping. Will i have to pay custom duty in india?

Ravindrak kumar said...

Dear rushil,
If it dutiable goods and attract duty, you have to pay duty.Pl see my site for e bay user www.ebay.globaltaxguru.in to know more .
Warm regards
Ravindra Kumar

rushil said...

Thanks for the help but your duty calculator doesn't seem to be working.This is my item.If possible tell me how much I'm gonna have to pay.
http://cgi.ebay.com/Zippo-1600-brushed-chrome-windproof-lighter-FREE-GIFT_W0QQitemZ390096105098QQcmdZViewItemQQptZLH_DefaultDomain_0?hash=item5ad38a2e8a

If not possible please send me a link to your calculator when it works.Thanks for all the help.Rushil.

Ravindrak kumar said...

Dear Rushil,
Thanks for your feedback. There was a problem with server . It has been rectified.
Regards
Ravindra Kumar

Saurabh said...

Hello Sir,
Could you tell me how much duty I need to pay when importing Nikon D90 (DSLR) by fedex and by post

Thank you
Saurabh

Saurabh said...

price of which is 1000$

Ravindra kumar said...

Dear Saurabh,
Digital camera are consumer electronic goods, and , if cost (CIF) is more than Rs 2000/-,then, same attract fine and penalty , in addition to duty on being imported through Post. There will be delay on account of adjudication proceedings.
It is advisable to import through Courier,as no licence conditions is attached for personal import.
In the recent budget, CVD has increased to 10% for this item ,if imported through Courier.
You may explorer my site www.globaltaxguru.in for getting fair idea. This site is still under construction and not updated for change in rate of duty after budget. It is in process.
Regards
Ravindra Kumar

Ravindra kumar said...

Dear Saurabh,
You may pl see www.ebay.globaltaxguru.in ,if you are buying from ebay. Site will be ready by end of this month.
Regards
Ravindra Kumar

Anonymous said...

Dear Sir,
I just came accross your website & it obviously seems to be the place I've been looking for. I am very keen on importing a specific chinese mobile model,it has several features such as GPS, wifi, TV etc costing around $150 (not available anywher in Mumbai); I can buy it online have it shipped as a gift.
It will be highly appreciable if you can kindly let me know about the taxes/duties & if there could be any customs problem.
Thanks & regards..

Global Tax Guru said...

Dear Naveen,
Pl visit my site www.globaltaxguru.in for duty on mobile phone.
Regards
Ravindra Kumar

Anonymous said...

Dear Sir,
Thanks for your advice; saw your website (globaltaxguru)- it seems you are not advising import of mobile thru post(can't fig out why); please advice which shipping method do you recommend for a mobile from China (where EMS is being offered as an economical mode)and could there be any customs / duties problem.
regards
Naveen

Global Tax Guru said...

Dear Naveen,
For importing mobile phone ,either it is courier or air cargo. Post is recommended if it is COSTING Rs 2000/-(CIF).
regards
Ravindra Kumar
www.globaltaxguru.in

Anonymous said...

Dear Sir,
Thanks again; just one more question - as per your website the custom duty on mobile is indicated as "nil" if it is shipped as Gift & the value is upto Rs 10000/-. In my case the value is around US $150, so will it be really duty-free.
regards
Naveen

Anonymous said...

Dear Sir,
It seems my last comment got lost (or may be moderated out);I'll highly appreciate if you kindly advise:
1.0 Is it legal to import a chinese mobile phone, or can it lead to any legal/custom hassles.
2.0 What will be the over all tax/duty if it is below Rs 10k & courriered as a Gift.
regards
Naveen

Global Tax Guru said...

Dear Naveen,
Pl see my website (http://www.globaltaxguru.in ),it
will answer all your queries such as it is legal to import from china, if it is bona fide gift( where you have not paid money to buy the phone),then ,no duty.
Otherwise ,it is 1.03% ,AS DUTY OF EXCISE. Refer websire for detail calculation ,if it is not gift.
Regards
Ravindra Kumar

Anonymous said...

Dear Sir,
I've gone thru your website, it's very helpful but I also seem to be getting lot of conflicting information,Merit duty is shown as 1% but the footnote talks of some MRP based assessment & not the merit duty, then at another place some 4% CVD is also mentioned - the subject seems to be just getting more complicated, may be it is supposed to be that way so that people don't just see beyond what's available in India. anyways plz tell me is it legally permitted to import a mobile phone from china. Also tell me if a mobile battery is permitted by post.
regards
Naveen

Anonymous said...

Dear Sir,
Visited your website again, it is quite useful but some detals seem to be conflicting - the duty for mobile phones is shown as 1.03% but the calculated amount appears to be about 15% (GPS mobile), some foot note also says that 1.03% is the merit duty but actual assessment is MRP based, then there is also a mention of 4% CVD some where.The subject seems to be getting more & more complicated, may be it is meant to be that way so that people don't see beyond what's available in India. Anyways plz tell me if it is legally permitted to import a mobile phone from china, also if a mobile battery is allowed by post.
regards
Naveen

Global Tax Guru said...

Dear Naveen,
Pl send me sequence , you have followed in website www.globaltaxguru.in. I can clarify your doubt. Mobile phone and battery are freely importable as far licence is considered. Duty on mobile phone is 1.03%.
Regards
Ravindra Kumar

Anonymous said...

hi,
i have bought a iphone on ebay and has been sent via usps priority, he has marked item as gift and has set the value at 95$, should i expect customs, if yes then what all should i expect.
cheers,
bipsiboy

Global Tax Guru said...

Dear bipsiboy ,
Duty on mobile phone
is 1.03% of the MRP value in India .
For more information you can visit my site www.globaltaxguru.in ,you can go ebay site directly and can see what is duty.
Bought goods cannot be gift and declaring like this is illegal.
Regards
Ravindra Kumar

drashkum said...

dear sir,
i am contemplating import of a musical keyboard from U.S based website

http://www.sweetwater.com/store/detail/MotifXF6/

this model is not yet launched in india ( i have extensively enquired in yamaha music store all over india) and is available abroad only the cost in india is not known as it is not launched in india. the cost of the keyboard roughly comes aroud 1.06 lakhs INR converted from US $. The web site says it can ship it through international courier FedEx. But web site also says i have to bear the customs duty and clearency if any!!.

Can you please elaborate me what are my liabilities in importing?

I just stumbled upon your blog by chance. it is amazing for people like us. please continue your good work

cheers
drashkum

Global Tax Guru said...

Dear Drashkum,
Pl visit my site www.globaltaxguru.in for more information.You have to pay Customs duty. Find likely duty on this website.
Regards
Ravindra Kumar

Vaiboo said...

Hello Sir,

I am Vaibhav from mumbai. Recently I won an Ipad2 as prize in a competition. Since the electronic item is not available in India yet, the organizers are going to courier it to me from their UK office.

Wanted to know whether i will have to pay any import duty when the item arrives in India?

Please help. Thanks..

Unknown said...

Hello, Nice to see that blog commenting done right still has many benefits. Thanks for sharing your insights.
Import Procedure India

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