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Thursday, November 15, 2007

Import customs duty on Mobile phone,PDA,smart phone,GSM

There is lot of convergence in mobile space.Now,mobile phone act as camere,video recorder,modem,FM radio,Mobile TV etc.There is only 4% duty on mobile phone irrespective additional features.This duty is also refundable for the trader who are importing and paying sales tax.However , the government circular to clarify classification aspect is reproduced for reference:
Circular No.17/2007-Cus
F. No.528/26/2005-Cus(TU)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

North Block, New Delhi.
Dated the 19th April, 2007.

Sub: Clarification in respect of classification of higher technology featured mobile / cellular handset or telephones – regarding.
****

Board has received certain representations from the trade and industry regarding classification of higher technology featured mobile / cellular handsets or telephones, which contain GPS features apart from other functions like music, camera, voice recording, e-mail, internet and related editing features. Field formations have also requested to issue a clarification in the matter of classification of a hybrid product containing PDA, mobile phone with camera and GPS, which are being imported presently.

2. It is represented that mobile, cellular handset / telephone has the essential characteristic of transmission and reception apparatus, such as aerial, display screen, keypad and that the same should be of small size so that it can be hand-held and is of lightweight for use as telephone instrument. The other functions such as radio receivers, music players, e-mail, net browsers, calculators, stopwatch, alarm, computing on software platform are subsidiary to the main function of transceiver.

3. The issue was examined in the Board. Telephones for cellular networks or other wireless networks are presently classified under sub-heading 8517 12 of the First Schedule of the Customs Tariff Act, 1975. This Act does not provide specific Chapter Note or Sub heading Note on this product. As per Harmonized Commodity Description and Coding System (HS in short) effective from 1.1.2007, ‘telephones for cellular networks or for other wireless networks’ are classified under heading 8517. Earlier, prior to HS changes 2007, cellular phones were classified under heading 8525. There is no mention of the mobile phones that also have features of word processing, e-mail, internet, Global Positioning System (GPS) Receiver, Personal Digital Assistant (PDA), Smart phone etc. in the HS Notes. Further, tariff Item 8526 91 90 covers ‘other radio navigational aid apparatus’, which, inter alia, includes Global Positioning System (GPS), radar apparatus. Similarly, sub-heading 8471 30 covers ‘portable digital automatic data processing machines, weighing not more than 10 kg., consisting of at least a central processing unit, a keyboard and a display’. HS explanatory notes to sub-heading 8471 30 state that machines which are equipped with flat screen, capable of operating without an external source of electric power and having an acoustic modem for establishing a link via the switched network are classifiable under sub heading 8471 30. However, there is no exclusion or specific note for classification of mobile/cellular phones with other functions as described above, in the HS Notes. Therefore, field formations were experiencing difficulty in classifying a product having combination of characteristics of a Personal Digital Assistant (PDA) / Personal Computer, GPS receiver, Camera and cellular phone.
4. The First Schedule to the Customs Tariff Act, 1975 specifies the various categories of imported goods in a systematic and well-considered manner, in accordance with an international scheme of classification of internationally traded goods, i.e. ‘Harmonized Commodity Description and Coding System (HS). Accordingly, goods are to be classified taking into consideration the scope of headings / sub-headings, related Section Notes, Chapter Notes and the General Rules for the Interpretation (GRI) of the First Schedule to the Customs Tariff Act, 1975. Rule 1 of the GRI provides that the classification of goods shall be determined according to the terms of the headings of the tariff and any relative Section notes or Chapter notes and thus gives precedence to this while classifying a product. Rules 2 to 6 provide the general guidelines for classification of goods under the appropriate sub heading. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining Rules 2 to 6 may then be applied in sequential order. Further, while classifying goods, the foremost consideration is the ‘statutory definition’, if any, provided in the Customs Tariff Act. In the absence of any statutory definition, or any guideline provided by HS explanatory notes, the principle of how goods are known in ‘common trade parlance’ is adopted, giving due importance for the common dictionary meanings.
5. In terms of the First Schedule to the Customs Tariff, ‘telephones for cellular networks or other wireless networks, push-button type or other’, would be classifiable under sub-heading 8517 12. Similarly, ‘portable automatic data processing machine weighing not more than 10 Kgs., consisting of at least a CPU, a key board and a display’ would be classifiable under sub heading 8471 30; and ‘radio navigational aid apparatus’ would be classifiable under sub heading 8526 91. From the scope of the headings / sub-headings, Board found that all mobile or cellular telephones whether working on the Global System for Mobile Communications (GSM) standard, Code Division Multiple Access (CDMA) cellular systems, Wireless Local Loop (WLL) or any other Mobile technologies, principally used as communication device would get covered under sub-heading 8517 12. These are essentially communication devices working on the basis of towers and base stations arranged into a network of cells, which send and receive radio signals for the cellular / mobile phone for communication. In view of the above, Board clarifies that sub-heading 8517 12 will cover all types of telephones that work on cellular networking technology or other wireless network.

6. Further, such cellular / mobile phones may contain certain facilities such as storage of contact information such as phone numbers (dialed / received / missed call), names and addresses, to-do lists, notes, appointments, E-mail address, facility for Short Message Service (SMS) / Multimedia Messaging Service (MMS), calculator, alarm clock, calendar, games and other similar facilities as a standard feature. These facilities assist the user to make calls to desired person, identify the caller, keep track of his calls, send/receive messages and enhanced use of communication using any of the above facility. Hence, these features of cellular/ mobile phones do not change the principal function of such equipment i.e., ‘telephony’.

7. Certain cellular/ mobile phones called as ‘smart phones’ may also have other additional features such as accessing the Internet, sending and receiving E-mails, video recording/camera, word processing, radio or audio capabilities with color screens, QWERTY keyboard, touch screen. It may also run application software and synchronize with PCs, function as Global Positioning System (GPS) receiver. These devices work on operating systems (software) like Symbian OS, Microsoft Windows Mobile OS, Linux OS, which are similar to the software used in desktop PC / laptop. All these functionalities grouped as PDA or pocket PC or camera or GPS receiver, contained in cellular/ mobile phones, though represent as composite machine, for the purpose of classification, it will be governed by the Customs Tariff Act and the General Rules for Interpretation (GRI) as explained in para 4 above. Accordingly, in terms of Section Note 3 to Section Note XVI when the goods satisfy the following conditions these would be characterized as transmission apparatus in cellular / wireless network rather than as an Automatic Data Processing (ADP) machine or camera or GPS receiver.

(i) use transmission of signals (representing speech, messages, data or pictures) by means of electro-magnetic waves which are transmitted through the ether without any line connection i.e., wireless, in any of the bandwidth allotted to mobile/cellular networks say 850 MHz to 1900 MHz; and

(ii) consist of transmission and reception hardware such as transceivers, antenna, microphone, speaker, battery, radio-frequency chip, basic band chip, power management chip, Subscriber Identity Module (SIM), International Mobile Equipment Identity (IMEI) or other unique identity for cellular/mobile phone as well as radio-frequency transmission software such as GSM, General Packet Radio Service (GPRS) and Enhanced Data rates for GSM Evolution (EDGE) etc.,

Hence, such cellular/ mobile phones remain classified in sub-heading 8517 12, as the principal function of these equipments remain as ‘telephony’.

8. It is further explained that cellular / mobile phones can also be employed as data modems to form a wireless access point connecting a personal computer to the Internet. In this use, the mobile phone is providing a gateway between the cellular service provider's data network and PCs. In terms of chapter note 5 D (ii), it is made clear that such mobile phones shall not be classified under heading 8471 when they are presented separately. In other words, only when such phones are presented along with ADP machine or when composite machines consisting of ADP and mobile phones, where ADP is the principal function, these would be classified under heading 8471. Further, it is clarified that GPS receivers having phone function that does not operate through any of the cellular network or mobile technologies for the transmission or reception of signals, but operates exclusively through direct satellite connection or differential GPS (on the longwave radio frequencies between say 285 kHz to 325 kHz) is however classifiable under sub-heading 8526 91 as other radio navigational aid apparatus.

9. In trade parlance too, it is noticed that the goods are sold as cellular or mobile phones with various additional facilities, the use of which is dependant on the cellular service provided. Further consumers purchase such cellular phones mainly because of their ability to transmit data in all situation and locations, and at all times, not just in specified places that offer Wireless / Wi-Fi access. In short, it is found that goods are marketed and consumers purchase a smart phone or other similar cellular/ mobile phone, because of the phone function with additional facilities and not for their PDA or GSM capabilities alone; as such these additional facilities will not become operational without subscribing to a cellular phone service plan. Hence, it is clarified that these instruments are to be categorized as mobile / cellular phones from the point of trade parlance.

10. Further, in terms of Note 5 (E), it is provided that machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. In view of the above, it is clarified by the Board that the smart phones or cellular / mobile phones with the capability described above are machines performing a specific function i.e. ‘telephony’ and hence, even if they satisfy note 5 (C), in view of the Section Note 3 to Section XVI, Notes at 5 (D) (ii), and 5 (E) to chapter 84, such mobile phones would be classified in the headings appropriate to their respective function i.e., ‘Telephones for cellular network or other wireless networks having the principal function of telephony’ under sub heading 8517 12.

11. The above instructions may be brought to the notice of all concerned for effective implementation. Pending assessments, if any, may be finalized accordingly.

12. Please acknowledge receipt of this circular.

Yours faithfully,(Anupam Prakash) Under Secretary (Customs Policy)
Ph. 2309 3859

129 comments:

Global Tax Guru said...

Hi,
i saw your blog at http://personalimport.blogspot.com/
Its nice blog for newbies like me who import lot of personal items...

I need a help from you
I bought an iPhone for $499 from US ebay site on 12th October 2007
Seller shipped the item on the same day and he marked that item as
gift while shipping...
Item is shipped in USPS Priority mail (6-10 days) and its
insured(without online tracking)

Till today (after some 17 days) i didn't receive the item... thats the prblm

I'm having lot of doubts regarding indian customs...
I saw in your site that cell phones can be imported without any duty?
Is that correct...
whether 17 days delay is OK(for US shipments)? because i received lot
of game discs for my PS3, 19 days after it was shipped from
HongKong(Play-asia.com).

Whether the item will be scrapped by customs so that i will never receive it?
whether the item will be delivered and import duty will be collected from me?
If I am ready to pay import duties how can I pay?

I searched a lot but i can't understand anythiing... please reply
answer to even single question will help me...

thanks
--
With best regards,
Prakash

Global Tax Guru said...

Dear Prakash,
Your item is costing more than Rs 2000/- and such electronics goods also attract fine and penalty in addition to duty.
The duty on mobile phone is 4% for personal use.But there is no duty for phones imported for re-sale purpose as the duty paid get refunded.
pl see similar questions and answers on previous posts.Your all doubts will get cleared. If you have any doubts,pl write to me.
regards
ravindra kumar

Global Tax Guru said...

Hi
Thank you very much for your reply...
I read your blog completely and understood many of the stuffs...
I still have a question...
How many max days a product can be kept in customs office for/without
inspection(without sending a detained note)? or in other sense
how many max days a product can be delayed from shipping by indian customs?

continue the good work... subscribed to your blog rss...
--
With best regards,
Prakash

Global Tax Guru said...

Dear Prakash,
No parcel is detained without any reason.The addressee is informed by the Postal and Customs authority before detaining.If no response then it is returned back to the sender.Any parcel containing prohibited goods then it is confiscated by the department.
Some of my posts i have written reasons for delay in receiving parcel.You may find answer there.You may in quire into nearest Foreign post office to your address.
Pl inform me how did you come to know about my blog.Also provide links to your website ,so,the blog can be helpful to many.Paste our mail to blog so more people can share your experience.
with regards
Ravindra Kumar

Rahul Sharma said...

Hi Sir same wid me sir i have ORDER used Iphone for 470$ and sir it is coming via USPS sir if its stucked in Customs how would i get to know my item get stucked in customs sir i need ur help please reply

Global Tax Guru said...

Dear Rahul,
Used consumer goods are not allowed to import.You will get notice from the customs and post.Based on reply,further action will be taken.
pl go through my previous post in archie,you will get fair idea.
Do not worry.i will guide you.
regards
Ravindra

Rishi Rich said...

Dear Ravindra First Of All I would like to thank you for putting up such a nice and informative blog. I am stuck up and i need your advise.

I want to buy a mobile from E-bay worth 850 USD exclusive of shipping. The condition is New/Never Opened and the seller is located in US. As per your Blog there are two classes of cell phone; one that attract 4 % duty and other class attracting 34 % import duty.

So now my concern is that the cell phone i am buying is an advance phone. And i am still afraid that custom people will levy 34 % import duty.

Also as per your blog i cannot import an item for personal use if they exceed a particular amount.

The handset is not available here in India and i am really desperate to get one for personal use.

Also i have an IEC Number in the name of my company issued on 12th March 2007. I applied for an export license and till date no trade has been done on it. Can i use the same number for Import and can this IEC Number prove beneficial for me in some way.

Rishi

Rishi Rich said...

Dear Ravindra First Of All I would like to thank you for putting up such a nice and informative blog. I am stuck up and i need your advise.

I want to buy a mobile from E-bay worth 850 USD exclusive of shipping. The condition is New/Never Opened and the seller is located in US. As per your Blog there are two classes of cell phone; one that attract 4 % duty and other class attracting 34 % import duty.

So now my concern is that the cell phone i am buying is an advance phone. And i am still afraid that custom people will levy 34 % import duty.

Also as per your blog i cannot import an item for personal use if they exceed a particular amount.

The handset is not available here in India and i am really desperate to get one for personal use.

Also i have an IEC Number in the name of my company issued on 12th March 2007. I applied for an export license and till date no trade has been done on it. Can i use the same number for Import and can this IEC Number prove beneficial for me in some way.

Rishi

Global Tax Guru said...

Dear Rishi,
Thank you for appreciation. You have yo pay only 4% duty provided that you import through Courier and Air Cargo. The Rs 2000/- restriction is only for importing through post.
warm regards
Ravindra Kumar

Rishi Rich said...

thanks for such a prompt reply.Does Post here means Indian Post ?. The seller will ship the set through Fed-Ex. So according to you i would be required to pay only 4 % duty.

Global Tax Guru said...

Dear Rishi,
Yes,you have to pay 4% duty.Post means Indian Post only.
best wishes
Ravindra Kumar

Anonymous said...

hi mr ravindra,
i am thambi working in singapore and need to send a panasonic dect phone for domestic home use for my friend in india, costing $120. i wish to send thro dhl jumbo box.
do my friend require an import license to clear customs
your blog is certainly an eye opener for many indians settled abroad and wish to send to their dear ones in india. thanks

Global Tax Guru said...

Dear thambi,
You donot require any licence for importing mobile phone through Courier.
Regards
Ravindra kumar

MoB said...

Hi Ravindra,
Thanks for ur valuable comments and suggestions. Am buying a used phone from a seller like u or me thro' internatinal courier. The new phone cost 250$ but since this is a used phone, am buying this for 100$.
Should the package contain bill or something that shows the valuation of the phone? Since this is a used phone, how in what form should the valuation be shown? Also what will be the import duty. thanks in advance

--Mohan, Chennai.

Chaitanya said...

Dear Sir,
I want know what is import duty India on Mobile satellite TV antenna. I want import to India from China. Any other regulations

Chaitanya said...

Dear Sir,
I want know what is import duty India on Mobile satellite TV antenna. I want import to India from China. Any other regulations

Global Tax Guru said...

Dear Chaitanya,
Import duty may be 24.421% of assessable value ,if it is dish antena type. Import being from China, some time ,it may take longer time for such communication equipment.Find out from deptt and other importer to know current practice ,otherwise,It is freely importable.
Regards
Ravindra Kumar

Anonymous said...

Hi Ravindra,

I am planning to buy a Chinese make mobile phone costing around $300. Can you guide me that how much would be the customs duty I have to pay considering following conditions..
1. Its a refurbished phone
2. Its not available in india
3. will be sebt from China through registered Air mail.

Anticipating your reply

Regards,

Yogi

Global Tax Guru said...

Dear Mr Yogi,
Refurbished consumer goods are not allowed to be imported.
Also require IMEI number on mobile phone to be declared. Additionally , you may pay fine and penalty.Further ,duty is 12.827% on mobile set.
Regards
Ravindra Kumar

Anonymous said...

Thanks Ravindra,

I am amazed to see your quick response.

About my query,

I can go for a new cell phone with a little more landing cost(about $350) in that case will my order attract any fine and penalty?

The seller said its ok at his part to mark the shipment as 'Gift' and mark cost around @30.

Please guide me should I go for the deal?

Regard,

yogi

Denal V D said...

Dear Ravindra,
I want to buy a iphone 32gb from UK by DHL courier.What is import duty for this? please reply fast it's urgent.

Global Tax Guru said...

Dear Denal,
The customs duty on mobile phone is 12.56960%.
Regards
Ravindra Kumar

Vince said...

Hi Ravi,

Hope u r doing great buddy.Brilliant job man. Please keep it going yaar.

I have recently bought a mobile phone on ebay for personal use.It cost me $149.99 . Extra Shipping costs were $15.So a total of $165....The item has been shipped from HONGKONG thru the HONGKONG POST and it left HONGKONG on 16th of November..

Can i get to receive the item??Jus wanted to know how much customs tax do i need to pay, if at all?? The shipper has shipped it in a normal Carton box...Please do clarify me on this buddy. Thanks in advance and cheers


Regards
Vince

Crusader said...

Hi Ravi,

Hope u r doing great buddy.Brilliant job man. Please keep it going yaar.

I have recently bought a mobile phone on ebay for personal use.It cost me $149.99 . Extra Shipping costs were $15.So a total of $165....The item has been shipped from HONGKONG thru the HONGKONG POST and it left HONGKONG on 16th of November..

Can i get to receive the item??Jus wanted to know how much customs tax do i need to pay, if at all?? The shipper has shipped it in a normal Carton box...Please do clarify me on this buddy. Thanks in advance and cheers


Regards
Vince

Global Tax Guru said...

Dear Mr Vince,

I am developing website www.globaltaxguru.in. At this site, you can find out what is best way to import goods, like,whether ,it is Post, courier, Baggage or Cargo. Currently , you can try LCD tV IMPORT for experiment.

Mobile phone duty @ 12.56960%.Above Rs 2000/-(C.I.F.) CONSUMER Electronics goods attract fine and penalty through Post, in addition to duty. But goods imported for personal use do not attract fine and penalty ,if imported through courier and cargo.
Your Mobile SHOULD HAVE IMEI number otherwise Customs will not allow clearance.
Regards
Ravi

Regards

Ravindra Kumar

Crusader said...

Thanks, Ravi, for sharing good information.I recently searched the customs site and came across a link http://www.cbec.gov.in/customs/cst-0809/chap-85.pdf. It mentioned that the tariff rate over cellular phones ( Under TARIFF ITEM# 8517) is FREE. I got a bit perplexed over it and hence sought information from ur side. Please do have a look at the link, if u already haven't that is. Anyways thanks again buddy :)

Regards
Vince

Unknown said...

Hi Ravindra,
First of all, thanks for sharing very good information. I would like to know about importing mobiles phones for sale in india. I am not a business man or don't have any import/export license. Will there be any legal problem, if I import say, 20 mobiles phones through cargo/courier and sale it in india? What are the formalities required and what will be the tax i would need to pay for that?

Thanks and Regards,
Shinu

Global Tax Guru said...

Dear Shinu,
You are importing mobile in commercial quantity. Therefoe, you require IEC and contact DGFT .
Further , i am developing website www.globaltaxguru.in. (site is under constrction). Where you can search what is duty,whether do you need licence, what is duty variability as per importing medium like postal ,courier,Baggage and cargo.

You may test by entering item like lcd tv and comment on usability of this site.

I am integrating www.globaltaxguru.in with ebay and amazon, so, at the time of buying any items ,you can check whether what duty and import condtions , i have to satify.
warm regards
Ravindra Kumar

Amol said...

Hello! I want to buy used iphone from ebay.com (USA),
1. How much custom duty will it take?
2. Can I import used iphone?
3. Is there any restriction on this?

Please reply.

Global Tax Guru said...

Dear Amol,
Pl see my website www.globaltaxguru.in which will suggest many option for importing i phone through courier, post, baggage,licence restrictions,etc. if you are buying from ebay than it extract data from ebay and gives all duty calculations and licencing conditions.send me your suggestions and experience.
regards
Ravindra Kumar
www.globaltaxguru.in

Tarak M said...

Hi,

I have ordered a new HTC phone from a UK online store, for personal use, and it will be shipped to India in mid Feb 2010.
Could you please advise if there is an import duty and how much.

Look forward to hearing from you.
Thanks in advance!

Tarak M said...

hi,

I am getting a new HTC phone from a online store in UK. Could you please let me know what would be the import duty on it?

Look forward to hearing from you. Thanks in advance!

Regards,

Global Tax Guru said...

Dear Mr Tarak,
Pl see my web site www.globaltaxguru.in and you will get details on rate of duty. No mobile phone is not allowed to be imported without IMEI number.
Regards
Ravi

ravindrak kaumr said...

Dear Mr Tarak,
Pl see link to my sites.
Regards
Ravindra Kumar

nishant said...

HI Ravindra,
I saw your blog and site. Very nice job!
I need your help, My friend(Hong Kong Resident) purchased Iphone from Hong Kong(worth INR 32k, she will be coming to India. my question is can she carry Iphone (packed) along with her, I hope she does not face any problems with customs, does she need to declare? kindly let me know the best way..thanks in anticipation

Global Tax Guru said...

Dear Nishant,
Thanks for appreciation. Happy Republic day.Pl see my website www.globaltaxguru.in,where you can explore various mode of importing Iphone through Post, courier and Baggage .Send me your feedback.Mobile phone/iphone should have IMEI number.It is integrated with ebay.
Regards
Ravindra Kumar

ravindrak kaumr said...

pl click this link for knowing duty and licencesing conditions.
Regards
Ravindra Kumar

Amol said...

Dear Sir,
I checked the pricing of used iphone on your site from ebay listing but I am till confused because it is showing almost Rs. 87,000/- Landing cost for the $250 used iphone from USA. Please help me.

Ravindrak kumar said...

Dear Amol.
Thanks for your feedback. Duty amount and assessable value are shown correctly for iphone found on ebay site.

But landing cost which is simple sum of assessable value and duty amount is not shown as such. We will rectify this clerical error. We are developing seperate module for ebay.You can see link http://globaltaxguru.in/Duty_Calculator.

The purpose of landing cost is to determine margin of profit for determining fine and penalty.To compare landing cost with domestic price of same goods. There fore, you may ignore this error at this point of time.

I will write post once the mistakes pointed by you is sorted out. Once again thanks for providing feedback
Regards
Ravindra Kumar

Vishal said...

Hi Ravindra,

I have imported an iPhone 3GS 16GB which has cost me Rs.33,000 from UK through Royal mail service. The phone is stuck at the customs and I am waiting for an invoice to be sent from the seller. The phone is for a personal use. The customs guys aren't even letting me know how much would the duty be. They say "first bring the invoice".

How much should the duty be for personal use?

If its for a commercial use, then how much would the duty be?

And what documents do I have to produce apart from the invoice?

Need your help urgently.

Regards,

Vishal

Ravindrak kumar said...

Dear Vishal,
Customs duty on mobile phone,smart phone,iphone is 1%

Customs duty is reduced on mobile phone after this budget. Now customs duty is only 1% and it is base on MRP price. To calculate duty, abatement of 35 % is given on MRP price. Now spl CVD is removed on mobile phone, smart phone , iphone.

Ravindra Kumar

Ravindrak kumar said...

Dear Vishal,
Customs duty on mobile phone,smart phone,iphone is 1%

Customs duty is reduced on mobile phone after this budget. Now customs duty is only 1% and it is base on MRP price. To calculate duty, abatement of 35 % is given on MRP price. Now spl CVD is removed on mobile phone, smart phone , iphone.

Ravindra Kumar

Sandeep said...

Hi Ravindra, can you please let me know the fine, penalty as well as duties on mobiles bought without IEC. There are 5 blackberry phones being imported from USA. Blackberry Curve 8300 for INR16,000. Therefore the invoice is of INR80,000 including the shipping cost. Shipped through DHL Airway. Please let me know the fine, penalty, duties for both personal as well as commercial purposes.

If I had the IEC license, how much would the fine, penalty and duty be?

Is there anyway I can call you to get more queries clarrified?

Thanks,
Sandy

Ravindrak kumar said...

Dear Sandy,
Pl visit my site www.courier.globaltaxguru.in .Enter blackberry /smartphone in the product column. It will show duty.As per licence conditions is concerned, it is free if you have IMEI number on your phone,otherwise, it it is restricted.
If you have IEC number, then there is no fine and penalty. But ,if you donot have then it will attract the same. Quantum of fine and penalty will be decided by Customs authority,so, i cannot comment on it.
If you wish to import regularly then you can apply for IEC ,even in most of case, it is given within one Week time. Visit DGFT site.
Regards
Ravindra Kumar

Unknown said...

I bought Iphone 3GS for $500.
I want to send that to my family in India. What will be the customs duty?
I am trying to read this topic on your blog but the website is not opening right now. I would appreciate if you could answer that here. Thanks

Anonymous said...

Dear Ravindra,

I would like to know what are the customs duties and tariffs for importing "Mobile Mouse" and a "Mouse" that can be used for Gaming segments. I want to import it for business purposes in due course, initially to test the market. For now, we are assessing the costs etc so if I can have some cents, it would be of great help to me. Apologies to post my queries on this blog as I could not find elsewhere. Many thanks.

Best Regards,
Manoj

Ravindrak kumar said...

Dear Manoj,
If you are importing through ebay then you can use my site http://www.ebay.globaltaxguru.in, if importing through courier then use www.courier.globalatxguru.in,if through post then you can use www.post.globaltaxguru.in.

You have to enter just mouse or mobile mouse in my sites. You can use main site www.globaltaxguru.in for information.
Many person like you use my paid service for knowing duty and other things in detail with notifications and other benefit, if any.
Regards
Ravindra Kumar
Global Tax Guru

Jayesh Thakur said...

Dear sir ,
My uncle from Boston wish to send me gift ,valuing near about 100$(say iphone)as birthday gift to me my current location is Mumbai,so whether the shipment of this gift from USA to India (at my place ) attracts any duty ,penalties ,charges etc...? so plz suggest which formality should i need to do.

Ravindrak kumar said...

Dear Jayesh,
If it is imported through courier ,then,bonafide gift is allowed without any duty.( pl see my website www.courier.globaltaxguru.in)

But it is not permitted from post, as value is more than Rs 2000/-(CIF).( Pl see website www.postal.globaltaxguru.in)

Regards
Ravindra Kumar

Jayesh Thakur said...

Thanks for help,i have one question in my mind that is there any difference between Courier duty and postal duty and plz tell how many type of duty should i have to pay for shipment iphone from USA.

GlobalTaxGuru said...

Dear Mr Jayesh Thakur,
There is same duty for postal and courier, if importing iphone, @ 1.03%. Only difference is that consumer electronics goods
Valued more Rs 2000/-cif,attracts fine and penalty,if imported through Post.
Visit my site www.postal.globaltaxguru.in and www.courier.globaltaxguru.in for duty and other information.
Regards
Ravindra Kumar

PurplemindZ Design Studio said...

Dear Mr. Ravindra Kumar

I have just ordered HTC Desire phone from one ok the UK's website and they will deliver it to my bangalore address through courier. You have given this website www.courier.globaltaxguru.in

in order to check import duties etc for mobile personal use, but i am not able to open this website.Could you plz advice if i have to pay any duty on delivery of the mobile phone. Can custom hold it and ask courier company to leave it with them etc etc. Kindly advice.

PurplemindZ Design Studio said...

Dear Mr. Ravindra Kumar

I have just ordered HTC Desire phone from one ok the UK's website and they will deliver it to my bangalore address through courier. You have given this website www.courier.globaltaxguru.in

in order to check import duties etc for mobile personal use, but i am not able to open this website.Could you plz advice if i have to pay any duty on delivery of the mobile phone. Can custom hold it and ask courier company to leave it with them etc etc. Kindly advice.

PurplemindZ Design Studio said...

Dear Mr. Ravindra Kumar

I have just ordered HTC Desire phone from one ok the UK's website and they will deliver it to my bangalore address through courier. You have given this website www.courier.globaltaxguru.in

in order to check import duties etc for mobile personal use, but i am not able to open this website.Could you plz advice if i have to pay any duty on delivery of the mobile phone. Can custom hold it and ask courier company to leave it with them etc etc. Kindly advice.

Regards

Ankush Wadhwa

GlobalTaxGuru said...

Dear Mr Ankush,
Pl see website www.courier.globaltaxguru.in. it is working. I am putting result below from the site:


Product Name mobile phone
Custom-tarif heading 85171290
Merit Rate of duty 1.03%
Licence Condition No Licence Required as per ITC(HS)


Note:This item falls under MRP based assessment hence above Merit Rate of Duty is not taken MRP into consideration.

Regards
Ravindra Kumar

PurplemindZ Design Studio said...

Dear Mr. Ravindra Kumar

Thanks for your quick reply.When you say 1.03 % of duty. Do you think phone will be held by customs or while delivering the phone courier company will collect it from me from delivery address.I am assuming 1.03% is on invoice amount excluding shipping charge.

Kindly advice!

Regards!

Ankush Wadhwa

GlobalTaxGuru said...

Dear Mr Ankus,
Courier company will collect and for duty ,shipping charges are included. You can find out total duty payable at my site www.globlataxguru.in.
Regards
Ravindra Kumar

Akash V said...

dear sir
My sister residing in us wants to gift me a iphone. It costs around 200$ there.. She's coming india next month, does she pay any duty or penalty..?? I visited ur website, but i couldn't understand. Plz help me...

Yours
Akash V

GlobalTaxGuru said...

Dear Akash,
Duty on phone is 1.03%.
Gifts upto Rs 10,000/- is with out duty , if imported through Post or Courier.
Visit my site www.courier.globaltaxguru.in,
www.post.globaltaxguru.in,
www.baggage.globaltaxguru.in( If bringing at the time of returning India)
Regards
Ravindra Kumar

Yasar said...

hi

One of my friend is living in u.k and i asked him to buy a Iphone 4 which will be launched in India somewhere around september. The cost of the phone is 500 pounds. My friend will bring the phone along with him. But he said if he is not able to come he will send it through courier. In that case will i have to pay the customs duty if so then how much it would be.

thanks

GlobalTax Guru said...

Dear Mr Yasar,
Pl visit my site www.courier.globaltaxguru.in for duty .Regards

Ravindra Kumar

Unknown said...

hi,

i wanted to know dat how many mobile phones can an indian resident bring from uk to india..
n wat kind of import duty is applicable..

Unknown said...

hi,

i wanted to know dat how many mobile phones can an indian resident bring from uk to india..
n wat kind of import duty is applicable..

GlobalTaxGuru said...

Dear Vijeta,
There is no restriction as fas quantity and value is concerned, provided, that you pay due duty as per law.
For more information ,pl visit www.baggage.globaltaxguru.in or www.globaltaxguru.in .
Regards
Ravindra Kumar

rahulhere said...

Dear sir,

I want to import mobile phone from Hong Kong in large quantity(100-500)pieces,which are having genuine IMEI nos,Please tell me what will be rate of duty on this phone and also any other tax is applicable on it? And also any other license is require for commercial use.please reply
Thank you.
Rahul Jain

rahulhere said...

Dear sir,

I want to import mobile phones for commercial use.But i am not getting one thing suppose if I import 100 pieces of mobile phone from hongkong of CIF value 35usd/unit(1usd=47.8inr),weight:300gm/unit and
MRP:3000.your website calculator shows duty of 42097.35 Rs,but rate of duty is 1.03% so it should be 1724 Rs.(1.03% of price)of cif value or MRP.Sir please help me how it is actually calculated.
Thank you.

Anonymous said...

Dear Sir,
I am very keen on importing a new chinese mobile handset model priced around $150 thru EMS / courrier; plz guide if I'm likely to face any problem & any advice for the same.
regards
Rajiv

Unknown said...

Dear Sir,

I have been in your blog for long. Its useful in many ways. First up all thanks a lot for sharing your knowledge with us.

Now my questions, one of my friend is sending me a Nokia N900 phone which is used and cost around $300 to $350 in US. So how can I get the product without custom detain or tax problems ?

Recently I got IEC Number, so did I need to use it ?

Please advise me.

Thanks

Sahil Chaudhry said...

Sir
i am getting a used iphone from EBAY USA and found no link for same on ur site.Please let me know whether i should ask the seller to write it as gift or used

Global Tax Guru said...

Dear Mr kochinguy,
Thanks for appreciation. Duty on mobile phone is 1.03%.Second hand goods attract fine and penalty in addition to this rate of duty.
Regards
Ravindra Kumar
www.globaltaxguru.in

Global Tax Guru said...

Dear Sahil Chaudhry,
My site shows only 100 items form ebay sites.But you can search without model number in main site www.globaltaxguru.in.
You may refer above reply for other details.
Regards
Ravi

Unknown said...

Dear Sir,

Thanks for your reply. Can you please tell me how to avoid Tax, or how to use my IE Code to avoid penalty ?

Thanks

so-Hell said...

Hello Sir,

I really appreciate your help...
I went to your website today itself but unfortunately i didnt get any help for my Query. It will be highly appreciable if you can give me reply over here or on my Email.

My Problem is that i had purchased an Used Iphone 3g 8GB (dated 16th July 2010) from Ebay (USA). And Paid $203 and shipping $20, The seller shipped it with USPS Express mail International (Seller marked the item as SOLD not Gift).
And he said me that i will be getting the shipment within 3-5 working days. But its more than a week and i havent recieved the phone. I tracked the shipment with the help of Label Reciept at WWW.USPS.COM and it is showing that the shipment is in INDIA FOREIGN CUSTOM since 21st July 2010. However i havent recieved any call or note from the Custom Dept. now i am very worried as this is my First purchased from Ebay. I dont know what and where to go.

Please help me on this issue. what should i do, should i wait and expect that the shipment will arrive me shortly or do i need to do something else???

Please help me,
Sohel (mumbai)

Global Tax Guru said...

Dear Mr Sohel,
You have to track your gods at local post office and foreign Post Office .If goods is detained by Customs , you will get intimation.
Regards
Ravindra Kumar

so-Hell said...

Dear Mr. Ravindra Kumar,

Thanks for your reply...
However as you have mentioned in earlier post that used mobile phones are not allowed, so does it means that the custom department will detain my parcel for sure (as its an used iphone)or they can hand over my phone to me charging certain amount of Custom duty and Panalty/Fine. If yes than how much will be the total percentage on MRP or on Purchase. as i got this phone for 10800 including shiping.

Kindly reply me here as i coudnt calculate it at your website.

Thanks and regards,
Sohel

Global Tax Guru said...

Dear Mr Sohel,
Fine and penalty ,if any ,imposed by the Customs department, they can only decide quantum of it. Therefore, i cannot comment on it.
Regards
Ravindra Kumar

Sandip Maurya said...

Dear Ravindra Kumar,
I have one question to be asked...
I want to import one shipment which may contain 100 mobile phones, it will be for comercial use...
total amount of that shipment will be near 60-70,000 INR Rs.

Can you help me regarding Import duty, excise duty and sales tax...

please help me.

Global Tax Guru said...

Dear Sandip,
Pl visit my site www.globaltaxguru.in for information.
If have any query ,pl write to me.
Regards
Ravi

Unknown said...

Hello Mr.Ravindra Kumar

I am willing to buy Car Folding Key Alarm/remote start up System from www.koreanautoimports.com costing USD 259.95 + 18.60 shipping via International Air Mail by usps, what custom tax charge I'll be taxed. thank you

Global Tax Guru said...

Dear Paras,
Find duty on www.globaltaxguru.in or visit www.post.globaltaxguru.in (for postal mode). Enter alram and select which is more appropriate to your product.

Either send detail description of your product.
Regards
Ravindra Kumar
Global Tax Guru
www.globaltaxguru.in

Unknown said...

Hello Mr. Ravindra Kumar,

I want to buy a refurbished laptop from ebay...Will it be allowed in India, any customs or Import license is required for the same. (Some vendors can ship it to India too thru courier).

Regards
Dilip

Global Tax Guru said...

Dear Dilip,
Refurbished laptop are restricted item for personal import through courier.Attracts fine,penalty and duty. Visit my site www.globaltaxguru.in for more information.
Regards
Ravindra Kumar
Global Tax Guru
www.globaltaxguru.in

Unknown said...

hello sir,

i want to buy a cellular phone online which will be shipped from UK. the cost of the phone is 440 GBP. This phone is for personal use. Can you tell me how much customs i will be charged fot the phone??

chetan verma

Global Tax Guru said...

Dear Chetan,
import duty is 1.03% on mobile phone.
Regards
Ravindra Kumar
Global Tax Guru

MANI said...

HELLO SIR,


IF MY RELATIVES IN USA SENDING ME IPHONE 3GS (COST IN USA ABOUT $299) IN INDIA(DELHI)AS A GIFT
THEN SIR CAN U TELL ME :-
Q1.WILL I HAVE TO PAY ANY COSTUM DUTY ?
Q2.IF YES THEN HOW MUCH IT WILL BE?
Q3.WHICH ONE IS TE BEST WAY OF SENDING IT TO INDIA( FROM MY RELATIVE SIDE)?

Anonymous said...

dear sir,

if my relatives sending me iphone 3gs , from usa to india (delhi)cost around $299, then what will be the costum duty on it or will i have to pay any costum duty on not?

Global Tax Guru said...

Dear Mani,
Duty on iphone is 1.03 % of MRP price in India if retail price is printed. Best is Courier.
Visit my site www.globaltaxguru.in for more information.
Regards
Ravindra Kumar
www.globaltaxguru.in

ronybhavin said...

hii
my friend is bring a IPHONE 4 for me in $750 at mumbai airport.
then does he have to pay any thing at mumbai airport in custom or anything??
and if yes then how many rupees he has too pay there on airport???
please rpl

Global Tax Guru said...

Dear Bhavin,
Duty varies according to duty free allowance available to your friend.Pl visit my website www.globaltaxguru.in and explore ,BAGGAGE ,module on the site for more information
Regards
Ravindra Kumar
Global Tax Guru

Anonymous said...

hello sir,

my brother is planning to send his I phone which is one year old as a gift to me. can you tell me what is the best way i can receive it in India

Global Tax Guru said...

Dear Reader,
It may be courier.Pl visit my site www.globaltaxguru.in for more information.
Regards
Ravindra Kumar
www.globaltaxguru.in

Scorpion said...

sir,

thank you for the reply. i could not browse the website you mentioned, www.globaltaxguru.in. can you help me?

THANKS,

Danel Eden

Global Tax Guru said...

Dear Sir,
Website is working. Pl browse the same.
Thanks and regards
Ravindra Kumar

Anonymous said...

Hi Ravindra,
I'm trying to get an iPhone from USA. It is a used phone. My friend (who's bringing that phone) says he'll need to pay 33% tax for that. Can't he just carry the phone with himself and show it as for personal use (despite of carrying 3 cell phones of his own)?

Global Tax Guru said...

Dear Reader,
Your friend is right. Duty is even more than 33 %,it is 35 % + 3% CESS on this 35%.Visit my site www.globaltaxguru.in and check in baggage module.
Regards
Ravindra Kumar

Verman said...

Thanks for this great article,

I recently bought mobile phone on ebay (canada) for 400$ , its a new phone,MRP of this product is 500-600 USD.

how much duty will this attract ?

Also the seller has accidentally marked this as a Gift not sure why does it make any difference ? How long can the customs hold this product its been 2 weeks since i purchased this, seller sent it on same day via Canada POST.

Thanks,
I.Verman
Bangalore

Global Tax Guru said...

Dear Mr Verman,
Delay may be
because , you have mis declared as gift . Customs may be ascertaining price of your item. Duty is 1.03 % of MRP price.
Regards
Ravindra Kumar

Unknown said...

Hello Sir,

I am getting a IPhone from a friend of mine from USA, the cost of the phone is $200 for example what will be the custom i need to pay, and also custom is applicable only on New Phones or on Used phones also ?

Waiting for your reply,

Regards

Bal

Global Tax Guru said...

Dear Bal,
Used iphone is also charged duty.And also fine and penalty in addition to duty.
Ravindra Kumar

Anonymous said...

Dear Sir,

i want to buy a Motorola V3 from China Mainland. it costs me US $61.53 Including Shipping. so how much dities i have to paid?

its urgent, pls reply me quickly....

Avinash said...

hello i m from delhi and i have purchased a secondhand i-phone from ebay.com US, i purchased it in 123$ i want to now how much custom duty i have to pay...or it will clear custom or not...

i have also cover it with insurance and the phone is parcel by USPS...plz give me suggestion of that

Global Tax Guru said...

Dear Avinash,
It will attract duty,fine and penalty being second hand goods.For more information,you may visit site www.globaltaxguru.in.
regards
Ravindra Kumar

Anonymous said...

Hi,

I am an Indian citizen residing in the US. I am coming to India for vacation and wish to bring 10 cellphones to give family and friends.

I tried using your website but unfortunately it crashed. These phones are new and never opened. Will I need to declare it or can I just walk through the green channel? If I have to declare, how much is the duty?

Thanks a lot!
- Ritesh

Maddy said...

I want to buy lg renior 910i(ebay.com) for 110$ and i want to resell the mobile in india what is the import duty for this.If i buy this as a gift what would be the import duty...!!! please help me

Global Tax Guru said...

Dear Ritesh,
It is commercial quantity.It will attract fine and penalty apart from duty. Walk to red channel. Check at baggage module of www.globaltaxguru.in.
Need more clarification. Again post your query.

Global Tax Guru said...

Dear Maddy,
If you are purchasing from ebay than it is not gift and you have to pay duty.
pl visit my site www.globaltaxguru.in and this site is linked to ebay .
thanks

Vishal Rao said...

Dear Sir,

i am exporting some mobil phones from UK, but my good is stuck in germany. they are asking about COO (certificate of ownership)required by buyer. whats that COO? its really neccessory, and how to get it?

Vishal Rao said...

Dear Ravindra Sir,

i am importing some mobile of 40 units from UK. they deliver and give me tracking no. however i am tracking my good i seen that its stuck in Germany. they ask about COO. (certificates of ownership) required from buyer.

what is this COO, and how to get it?

is this a necessory thing?

Global Tax Guru said...

Dear Vishal,
It is country of origin(coo),where goods have been manufactured. Normally, Your supplier to provide you. Issued by Chamber of Commerce or other authorized body in a particular country.
Regards

Vishal Rao said...

thanks sir,

there is not anything like "Certificate of Ownership"? that is i am a buyer and i have to issue them?

thanks for your prompt response sir.

regards
vishal parmar

Anonymous said...

I have recently purchased a desktop computer worth INR 30,000 from a chinese online retailer.
Is there an import duty that I will have to pay in India or will I get it at the same cost that I paid to online retailer in china.
Please advice

Global Tax Guru said...

Dear Reader,
You have to pay duty @ 14.71% in India on price paid to your Chines seller.
Regards

DEEPU SINGH said...

I want to purchase a Samsung Mobile Phone Galaxy S II I 1900 from Italy over the famous site eBay.com. Its price is USD 425. Seller will provide free shipping through registered post. Indian Market price of this Cell Phone is around 30,000. Please let me know, How much duty will be imposed on this shipment in India ??

Global Tax Guru said...

Dear Mr Deepu Singh,
Pl visit my site www.globaltaxguru.in and explore postal module for import of samsung mobile phone/iphone.
Regards
Ravindra Kumar

Brijesh said...

Hi, I bought new iphone 4s 64GB from US apple online store worth US$ 900. it was shipped in US at my cousin's place. If my cousin send it to me in india as gift then how much duty i have to pay. Is it good to declared low price in courier.

Angad said...

visited your website... dont know how to use it....

My Question is I want to buy a phone called htc sensation xl from Singapore for 548USD + 15USD shipping price to India... Just want to know what will be the additional cost to it...

If it's there on the gtg site please give the exact link to that page..

YOGI said...

Hi sir,
I bought new iphone 4s 64GB from london. how much customs fee is made on that mobile. please tell me the amount to be paid as customs fee.
my email id is yogicode@gmail.com.
please send mail as soon as possible.

thanks
regards
yogi

Global Tax Guru said...

Dear Mr Yogi,
Pl visit my site www.globaltaxguru.in.Required information is available.
Regards
Ravindra Kumar

praveen said...

Hi Ravindra, i have ordered a used mobile worth of 9,200(168$) frm us, am i eligible 2 pay custom duty, if yes how much i need 2 pay.. plz let me know .. waiting for reply

Global Tax Guru said...

Dear praveen.
You have to pay fine.penalty and duty for used phone.visit site www.globaltaxguru.in for more information

Global Tax Guru said...

Dear praveen.
You have to pay fine.penalty and duty for used phone.visit site www.globaltaxguru.in for more information

Fernando said...

Halo sir
I would like to thank you for putting up such a nice and informative blog. I would like to import mobile phones from US for commercial selling. I need to know the exact custom duties i should pay since the mobile phones are delivered through courier...

Global Tax Guru said...

Dear Mr Fernando,
Thanks for appreciations and feedback.Pl visit my site www.globaltaxguru.in
Regards
Ravindra Kumar

Bob said...

Hi Ravinder ji,
Went through your site but could not find this particular concern of mine.
If I send 10 New Smart phones through courier from USA,
1. Would it be considered commercial automatically ?
2. Do the receiver in INDIA need to obtain any IEC prior for this transaction ?
3. Do I need an Export License in USA ?
4. Will there be any difference if I use US Postal Service for the same ?

Thanks a lot.

Global Tax Guru said...

Dear Bobji,
It is advisable to have IEC for commercial import. Importing through Postal will also require you have to pay fine and duty. Normally,if value of goods is less than Rs 1,00,000/ no regular Bill of Entry and hence no IEC for clearance through courier. I have no idea about USA EXPORT law.
regards

Bob said...

Ravinder Ji,
So basically,
1. One must break the big shipment in parts and keep each part below Rs. 100000/- in order to keep aside the requirement of IEC and regular Bill of Entry ?
2. Always use Courier as shipper not US Postal service to avoid fines and penalties ?
Can a US citizen in India be the receiver of shipment ?

Your efforts to educate people are highly appreciated.

g said...

Dear Sir,
In my opinion,It is not intention of Revenue that one has to split consignment. It is rather help people to get faster customs clearance . It is advisable one should have IEC.

Yes,USA citizen can also receive shipment.

Bob said...

Ravindra ji,
Hi there again, So nice of you for putting all these efforts to help people out.
I am trying to import Samsung Brand Mobile Phones in bulk from USA. my concern is:
. Would it be considered "Parallel Import" since it's Samsung and would it be breaking any law of Intellectual Property Rights?
. Is Parallel Import not allowed in India ?
. If the model which I am interested in is not marketed by Samsung in India, would it make any difference ?

Regards

Global Tax Guru said...

Yes, Many IP owners including Samsung have registered with Indian Customs for protection of their IP rights.
Pl contact Samsung for no objection.
Regards

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