Any goods is imported for personal use through Post then you have to pay Customs duty @ 17.34% on the value of goods .This duty is in force now. you have to pay duty only if duty amount is more than
Rs 100/-.(cn 21/2002,sn 406)
However, if any body imports second hand goods, then he has to pay fine and penalty ,in addition to duty, as per 2.17 of Foreign Trade Policy(2004-2009).
Most of new goods can be imported without any fine and penalty, but, with payment of duty if any.
36 comments:
Hi Ravindra Kumar,
Your answers to my question in your other posts was very helpful. I appreciate the effort taken by you to provide accurate answers to the questions.
From your posting, it is clear that we have to pay customs duty plus fine and penalty to import used goods. Can you please provide me an idea how the fine and penalty is calculated. Suppose I want to import a used cisco router which cost US$ 300, Shipping $ 150. Then the total amount is $450. How much I have to pay as fine and penalty.
Awaiting for your reply
Dear Jose,
If you read my previous post. i have explained in detail that the fine should not more than the profit margin.The personal penalty is imposed on you, if you are first time violating law than the fine will be less than .It is discrinationary power of the Customs authority.A accurate answer is not possible.If you are interested than i can give the formula for calculating margin of profit.
regards
Hi Ravindra Kumar,
Please provide me the formula for calculating margin of profit.The thing is that I am still confused and I really want to import these things because I require these things to complete my certification. Also please inform me whether there are some kind of concessions if the purpose is for educational purposes..
Regards
Hi, Can someone let me know the Foreign post office for any parcels sent from UK ? I have sent a parcel of 1.5 KG on the 04/06/2007 from UK to Chennai. It is a mini Router well packed with the connecting wires. Can some one let me know the earliest date the parcel would reach the destination ? Any help is much appreciated.
Hi Ravi ,
I was in search for info about rules for getting a feeding chair for my baby from US. I enquired in one of the Speed post centers but i didn't get proper information. It will be a new baby feeding chair and it's cost will be around Rs 4,000. According to ur info i don't need to pay anything to receive it through speed post. Am i right?
Thanks,
kiran
Dear Kiran,
You can receive feeding chair without duty if you receive as Gift,otherwise, you have to pay duty.
regards
ravi
Hello Sir,
I am trying to buy the classic straight edge razor and some accessories from US. This is for personal use. The value of the items would add up to about $250/-. I intend paying by paypal or credit card and the goods may come through DHL. Can i import for personal use? Will DHL pay customs and collect from me?
Thanks for your time and patience in answering such questions.
Hi Ravindra,
Thanks for your very informative blog!
I have a question. I bought an mp3 player from the US. My friend carried it along in person. After receiving it in India I find that it's defective. Does not start or even charge. I contacted the manufacturer's warranty service and they have asked me to send it to their repair facility in Singapore for repair or replacement.
However, they have mentioned that I'll have to bear the customs charges if any. I'm planning to send it by Indian Post as they have the cheapest fares.
Could you let me know if customs is payable in this case? The item is being sent only for warranty service, which moreover is going to be charge free because it's within the warranty period.
I bought the mp3 player for US $212 (~Rs 9000) on which I also got a $50 mail-in rebate. So the effective price to me is $162 (~Rs 7000).
Regards,
Proloy
Dear Proloy,
Thank you for your appreciation.your issue has two stages, first it is export for repair ,then, it is re-import of the same MP-3 player.
you have to declare goods are being exported for repair under warranty ,model,make and value for customs purpose
at the time of export .
However, if you donot get the same MP-3 player then you have to pay duty as if it is new one.Moreover, your supplier should say that he has not charged any money from you.
pl submit all documents to the customs to prove that the goods belong to you and your seller is sending back after repair.
regards
ravi
Dear smaiitm,
Sorry for late reply.The goods intended for personal use imported through Post are charged @ 17.34% even if they are priced more than rs 10,000/-.In case of import through courier ,then, if price is more than rs 10,000/- you may have to pay duty @ 32%(approx).But if the price of goods is lower than rs 10,000/- and received as gift then no customs duty, whether it is through courier or postal.
The DHL is expert in such clearance and they will clear the goods from Customs department.Duty will be collected from you by the DHL.In case, if customs department raise any query then you have to answer the same .
As far payment is concerned,it is the RBI and your bank is going to monitor.In my opinion ,you should not have any problem.pl write me ,this time i will not be late.
regards
ravindra
Hello iraj,
There is foreign post-office in MEENAMBAKKAM.It is located on 100 feet road,just after Trident Hilton Hotel.In the same premises, the customs staff is sitting . you can inquiry first with the Postal authority about your parcel then contact the Customs authority.No need to worry.you will have smooth clearance from Postal and Customs authority.pl write if you need more information.
regards
ravindra
Dear Jose,
The formula for calculating to determine Margin of profit(MOP);
MOP= (market price-landing cost)/cif x 100,
where landing cost means value of goods + total duty payable ;Market price is wholesale price of goods at place of importation.
regards
ravindra kumar
Thanks for the response, Ravindra!
I guess, to reduce complication I'll rather send it to the original US warranty site itself. The postal charges are the same to send either to the US or to Singapore. I can get the repaired/replaced item at some friend's location in the US and ask somebody to carry it. The only disadvantage here is that it might involve a lot of delay.
Or I may ask my friend to send it by courier again, and mark it as gift. Which should be allowable, I suppose?
Dear Proloy,
It is also advisable to discuss courier company at the time of export, whether ,they can help at time of re-import, to clear the goods.
otherwise,second option can be explored.
regards
Thanks Ravindra. However, the only courier company that is viable here is good old Indian Post. They charge about Rs 500 to send a packet weighing upto 500 gms, to either US or Singapore. The other couriers charge a minimum of Rs 2200. For something that I bought for Rs 7K, certainly I can't spend 2K+ for just courier. (Customs extra!)
I fact, some days back I had to send a simple letter (10 gms) to the US. Blue Dart, DHL, DTDC etc quoted me Rs 1800-2000 for it. I sent it finally by Indian Post (registered) for just Rs 40. Can you believe it? Rs 40 versus Rs 2000.
One more suggestion which I forgot to put in last time: if possible put in some links to government websites which speak of the laws (and limits) that you give in your blog. Those will be helpful in case someone lands in a difficulty. A blog won't convince officials, you know. :-)
I'll inquire with the post office whether they think reimport will be exempt from customs duty. I'll update here once I get further info.
Thanks for your advice, nevertheless!
Dear proloy,
Thank you for your suggestion. you can see website of central Board of excise and customs ; www.cbec.gov.in. There is customs manual which explain various procedures to be followed for import and export.
But, still many things are not updated even on the Government website.There is another popular website www.taxindiaonline.com .
further, if you import any new electronic consumer goods valued more than rs 2000/-(cif) through post, then you have to pay fine and penalty.But no such fine and penalty if imported through Courier.
if you export through Post for repair and return ,then at the time of re-import into India,you have to establish identity of goods with respect to export documents. Then,You can avoid fine and penalty and end up paying lower customs duty. The value on which you are going to pay duty will be equal ,to and fro freight cost,repair cost,insurance and handling.
PL decide based on various factors involved in Importing through courier or postal.
Further, you can refer Customs Act,1962 and Customs Tariff ACT 1975, which are available on cbec website.
As far postal procedures are concerned Postal website on gov.in are informative.
regards
ravindra kumar
Dear proloy,
you have to pay duty at the of re-import only on value which is equal to freight amount,repair cost ,insuarance and handling charges.
pl refer earlier posts for insurance rate,percentage of handling o goods.
regards
ravindra
Sir, I had ordered 3 Hard disk movie players from eBay-Honk Kong. The first one sent to me as a sample through DHL was cleared without any custom duty. The second one ordered a week later was also sent as a sample but they levied a custom duty of 1300. I imported the third one as a GIFT through EMS China, and the shipment tracker shows it is stuck with the customs for over 15 days now and there has been no communication either from EMS or customs department.
What will be the future course of action by the customs? Have they impounded my package. Will they send me a show cause notice? If they impose a penalty, will I be allowed to not pay the fine and relinquish my claim on the package?
Dear Arun,
Donot worry.it is not clear whether your item is stuck with indian customs or Chines customs.
If it is with indian customs and detained by them then you will get information from EMS and Customs simultanously.
Will you please let me know your present receiving address?
In one of my blog post i have given tentative route and expected time spent by parcel in travelling through out India, depending upon place of export and receiving address.
Pl contact your nearest foreign post office for further inquiry.Also inform me your product Import price to know probable duty and other liability,if any.
with regards
ravindra
Dear Iraj,
pl track your parcel on the website of Tamil nadu postal circle.Also detail of help line and e-mail are available in my previous posts. You can browse the same.
if you need any further information,pl write to me.
regards
ravindra
Sir thanx for your reply. I'm grateful for your help.
EMS China tracker shows that the Item was handed to the Customs at Mumbai on 16th, and since then there has been no update. I don't thing EMS service should take this long for delivery. I am located in Nagpur. The sender has put up a price of 20 dollars on the package and marked it as gift. The actual price however is 70 dollars.
Dear Arun,
pl contact Director (foreign Post ), Mumbai or his suboridnate staff to find out whareabout of your parcel.
Once Customs detain parcel then only local parcel number is generated by the postal services.
regards
ravindra
Sir, how do I reach the foreign post office? Can you provide me with a number/email or even a postal address where I can enquire. I tried googling, but coudn't find anything.
Hi Ravindra,
Appreciate your effort here. I recently ordered 3 DVD worth Rs 5000 from amazon uk. The post office levied a customs duty of 718 Rs. Is this correct? They did not levy it the last time I ordered for DVDs
Dear tsrfamily,
Since you have ordered or purchased these DVD`s, they are not the gift.Hence duty was charged.The duty for goods intended for personal use is around @17.34%,if imported through Post. The duty difference between your assessment in duty and duty levied by the Customs , may , be due to differeent value arrived by the customs department.
the customs duty are charged on Assessable value of the goods which is higher than your Amazon price.For more clarification pl refer my earlier post on valuation of goods through post.
regards
ravindra
Dear Ravindra, thanks for your help. I contacted the Foreign post office at Mumbai. The seller had not included an invoice for the gift item, and hence the customs had seized my parcel. They want to fax me an invoice.
Could you please tell me, whether the shipping charges are taken in account for the Rs.2000 limit for electronic goods? The Hard disk player in question is worth a lot more than Rs 2000. Should I send them an invoice of close to 2000 (say Rs 1950) and mention shipping charges separately alongside? Kindly assist.
Dear Arun,
If your item is hard disk driver and part of computer, then,it will not attract any fine and penalty.It is then not classified as Consumer electronic goods.pl write if you need further help.
regards
ravindra kumar
Sir, it is a hard disk video player which can be connected to the TV.(A similar one is listed here -http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=120151008797&ssPageName=MERC_VIC_RSCKCK_Pr4_PcY_BID_Stores_IT&refitem=120131788631&itemcount=4&refwidgetloc=closed_view_item&usedrule1=StoreCatToStoreCat&usedrule2=CrossSell_LogicX&refwidgettype=cross_promot_widget)
It would surely be categorized as a video player.
Kindly assist me how to make the invoice. Should I send them an invoice of close to 2000 (say Rs 1950) and mention shipping charges separately alongside? Kindly assist.
Dear Arun,
The video player is consumer goods.if C.I.F price(Cost ,insurance and Freight) is more than Rs 2000/-,then, it will attract fine and penalty in addition to duty.It include freight amount also.
The maximum freight can be 25% of F.O.B VALUE of goods.Further, the Customs valuation are based on wholsale price and not on Retail price.
The Customs authority have recorded price of many product and Internet also act as source.They may or may not accept your price.
To decide your price you do back calculation based on duty amount,margin of profit, other incidental expenditure related for selling goods.
Based on above , you may plan your Invioce value.The price should be transactional value,which is price you paid for product to your foreign supplier.
regards
ravindra
Dear Ravindara, thanx for your help. I sent the invoice and got my parcel delivered the very next day.
Btw, this is the contact number of Postal customs at Mumbai:
Phone - 022 26156152
FAX - 022 26156311
Dear Ravindra
I need to buy these old (used) machinical large format and medium format camera from an American site.These would cost me $1800 approximately
these are old model and probably not in production.
So do I pay fine for buying used camera or as their production has stopped I may get around these clauses.
Secondly do custom department open all parcel and check if they are used or new even when air-mailed through fedex or DHL ?
I have used Debit/credit card for for purchases of books can I pay this much amount through cards.
Thanks in advance
Deepak kumar
Dear Deepak,
The Customs open all the parcels those contain dutiable goods.The parcels are scanned if they comes through air.
Second hand electronics consumer goods attracts fine and penalty.
Regarding payment,it is your bank who along with you is accountable to the RBI.You can pay through international cards to your seller.
with regards
ravindra kumar
Dear ravindra ,
i m ranajith from pune i have imported an acer notebook its now in custom office since one week i got ems speed post letter regarding purchase bill for that it has been sent frm my friend frm usa and i was not in contact with him that time and my frnd forgot to write as gift on it so he kept bill inside the parcel now i told him to send an fax to your office and to call your office. as covering letter as gift and receipt if he has . so what will tax margin. ? please ur earliest attntion will be appriciable. thanks.
please read the below paragraph and let me know abt the duty taxes. cos its the matter contaning acer notebook and my frnd sent me acer notebook. so. thanks.
ptops Exempt from Additional DutyTechtree News Staff, Nov 12, 2007 1631 hrs IST
The Supreme Court has held that the government cannot levy an additional seven percent customs duty on imported laptops (notebook PCs) as in the case of desktop PCs.
E-Mail Print In what might ultimately prove beneficial to customers, the Supreme Court of India has ruled that the government cannot levy an additional seven percent customs duty on imported laptops (notebook PCs) as in the case of desktop PCs. The basis: laptops and desktops are two totally different entities.
Bangalore-based Acer India had filed an appeal challenging the additional levy imposed by the government.
A Supreme Court bench headed by Justice S B Sinha held that the government cannot ask IT companies to pay seven percent additional customs duty on notebook PCs unlike desktop PCs as the two items are totally different though capable of performing the same or similar functions.
However, the court upheld the judgement by the 'Customs, Excise, and Services Tax Appellate Tribunal', which said that additional levy is just to provide a level-playing field, and protect domestic manufacturers.
Meanwhile, the Supreme Court said that a laptop or a notebook PC comes in an integrated and inseparable form, unlike a desktop PC which is a combination of items, including the CPU, monitor, mouse, and keyboard. As such, a laptop or notebook computer is not a set of individual items as is the case with a desktop PC.
Who knows where to download XRumer 5.0 Palladium?
Help, please. All recommend this program to effectively advertise on the Internet, this is the best program!
Hello Mr. Ravindra,
Thanks for all your responses. I finally got a BY tracking number from the EMS Mumbai office and they diverted me to the postal customs office after that.
After much struggle I managed to talk to the concerned person at the postal customs office and he said that he has sent me a notice on 20-Jan-10 asking for the invoice and IEC which I obviously havent received till date. He also gave me a cell number of a person who happened to be a clearing agent when I called him back. Now couple of thing here...
- Is this indirect bribery that is being hinted to me.
- As the product which is worth $50 is for personal use and hence IEC is not required.
Please let me know what should I do now. The parcel has been with customs for almost 3 weeks now.
Regards,
Pijush
Dear Pijush,
You have to reply the customs and produce invoice for the same.No IEC is required.
Regards
Ravindra Kumar
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