Whether used Computer/Laptop/PDA to be imported from foreign or Purchased as new from local markets in India

All computers/laptops/pdas/mobile phones are charged same rate of customs duty,whether

they are old or new.But price of old and used consumer electronics goods being less compare to

new one, the total customs duty payable on the used goods is also less.

However, you have to pay fine and penalty on the old and used computers/laptops/pdas/mobile

phones.This may setoff the advantage of paying less duty on the used goods.Thus, it becomes bit

difficulty to decide whether to buy new or old from the foreign source.

There are many factors to be considered before arriving on a purchase decision.Some of them are discussed below.

It is general practice of the compnay to sell different models of

computers/laptops/pdas/mobile phones in different markets.Compare to Europian and

American markets, cheaper models are sold in India .The indian market is very cost sensitive.

Therefore,many used premium models of above goods are offered to sell at very attractive

price on the Auction websites.One may buy and import such models form the foreign source.

Many parts and accessory of computers/laptops/pdas/mobile phones which are

either not available in local markets or costly to buy.In such situation one may import.

Many times reliability,functionality ,warranty,and service after sales become a criteria to import

old goods or buy new goods from the local markets.



Now let me discuss how goods are suffered duties.

Any goods when imported into India is charged basic customs duty then it becomes equal to

goods manufactured in Indian factory.There after the imorted goods and manufactured goods

are charged same rate of excise duty , cess and sales tax. Now most of states charged VAT.In

addition to this ,local movements of goods within country are subjected to Octroi and other

/municipal/panchayat taxes.Further cost of local transportation and distribution cost is also

added to the imported or Manufactured goods.

No sales tax is paid if the goods are for own use.

Different option to purchase goods

The new computers/laptops/pdas/mobile phones are purchased from local markets:


· If the goods are of foreign origin,then they suffered customs duty at the time of first

import.Here the customs duty means Basic customs duty+excise duty+cess+special counter

vailing duty.

· If the goods are manufactured in India, then except Basic customs duty,all excise duties and

are charged as in the case of imported goods

In addition to customs and excise duty,the goods are subjected to sales taxes and other local

taxes applicable in particular place of sale.

o Therefore,it is clear that only difference between importing and buying from local depends on

saving in basic customs duty ,special countervailing duty and cess on customs duty.

Procedure in case of Postal Exports:

Rate of duty:

(a) The rate of duty and tariff value, if any, applicable to any goods exported by post shall be the rate and valuation in force on the date on which the exporter delivers such goods to the Postal Authorities. Goods for exportation may be delivered at Foreign Post Offices (including Export Extension Counters) and Sub-Foreign Post Offices which have been notified by the Customs under
section 7 of the Customs Act, 1962.

Declaration

(b) The articles exported by post are required to be covered by a declaration in
the prescribed form.

Remittance

(c) All exports by post, where the value exceeds Rs. 50/- and payment has to be received, must be declared on the exchange control form viz. P.P. form. When the postal article is covered by a certificate issued by the RBI (with or without limit) or by an authorised dealer in foreign exchange that the export does not involve any transaction in foreign exchange upto Rs. 500/-, the declaration in a P.P. form is not necessary.

Export of finacial documents

(d) Export by post of Indian and Foreign currency, bank drafts, cheques, National Saving Certificates and such other negotiable instruments is not allowed unless accompanied by a valid permit issued by the R.B.I., except incases where such negotiable instruments are issued by an authorised dealer in foreign exchange in India.

Licence and OGL

(e) Export of all goods is allowed under OGL to all destinations except those that are covered by the Negative List of exports. Goods upto the values of Rs. 15,000/- are allowed for exports as gifts in a licensing year. Items covered
under Negative List are not allowed as gifts without a license except in the case of edible items.

Not allowed to export

(f) Prohibition/restrictions under the Exim Policy and the Customs Act, 1962 exist on the export of various articles by Post. Some of these articles are viz. arms and ammunitions, explosives, inflammable material, intoxicants, obscene literature, certain crude and dangerous drugs, antiquities, etc.

Export by the foreign tourists

(g) Export of purchases made by the foreign tourists is allowed subject to proof that the payment has been made in foreign exchange.

Drawback of duty

(h) If the addressee take delivery of parcels on payment of duty and then wish tohave them returned to the senders they can do so only under claim for drawback under the observance of the prescribed procedure. Permitting an addressee to open a parcel and take the delivery of part contents on payment of duty and repack the balance of the contents for re-export without payment of duty thereon is not authorised and is irregular.

Govt of India prohibits the import of the following goods, namely:-

Counterfeit coin or coin made under the Native Coinage Act, 1876, or Indian Coin, which is not of the established standard in weight or fitness:

any obscene book, pamphlet, paper, drawing, painting, representation, figure or article:

goods having applied thereto a false trade-mark within the meaning of Section 77 of the Trade and Merchandise Marks Act, 1958;

goods having applied there to a false trade description within the meaning of clause (f) of sub section (1) of section 2 of the Trade and Merchandise Marks Act, 1938, otherwise than in relation to any of the matters specified in sub clauses (ii) and (iii) of clause (u) of that sub-section;

goods made or produced beyond the limits of India and having applied thereto any name or trade mark being or purporting to be the name or trade mark of any person who is manufacturer, dealer or trader in India unless-
The name of trade mark is, as to every application thereof, accompanied by a definite indication of the goods having been made or produced in a place beyond the limits of India, and
The country in which that place is situated is in that indication indicated in letters as large and conspicuous as any letter in the name of trade mark and in the English language:

(vi) piece goods manufactured outside India, such as are ordinarily sold by length or by the piece, if each piece has not been conspicuously marked-
with the name of the manufacturer, exporter, or whole-sale purchaser in India, of the goods, and
with the real length of the piece in standard yards or standard meters inscribed in the international form of numerals;

(vii) goods made or produced beyond the limits of India and intended or sale, and having applied thereto; a design in which copyright exists under the Indian Patents and Designs Act, 1911, in respect of the class to which the goods belong or any fraudulent or obvious Imitation of such design except when the application of such design has been made with the license or written consent of the registered proprietor of the design;

(viii) goods which are required by a notification under section 117 of the Trade and Merchandise Marks Act, 1958, to have applied to them an indication of the country or place in which they were made or produced or the name and address of the manufacturer or the person for whom the goods were manufactured unless such goods show such indication applied in the manner specified in the notification;.

(ix) cotton yarn manufactured outside India, such as is ordinarily imported in bundles, if each bundle containing such yarn has not been conspicuously marked-
with the name of the manufacturer /exporter, or whole-sale purchaser in India, of the goods, and
with an indication of the weight and the count of the yarn contained in it, accordance with the rules made under section 75 of the……..

(x) cotton sewing, darning crochet or handicraft thread manufactured outside India, if each of the units in which the thread is supplied has not been conspicuously marked-
with the name of the manufacturer, exporter, or whole-sale purchase in India, of the goods, and
with the length or weight of the thread contained in it and in such other manner as is required by the rules made under section 75 of the Trade and Merchandise Marks Act, 1958

Cus/F.No.4/10.63-Cus.VIII)S.VENKATESANDy.Secretary

Bonafide personal and corporate gifts

Receive personal or corporate gifts package valued upto Rs 10,000/- without

paying any customs duty during Diwali,Holi,NewYear,Christmas,Valentine

day,birthday,marriage anniversary,Raksh-Bandhan,Eid or any other occasion

through postal or courier services at your door step.

A suggestive list of gifts items package can be received without payment of

duty are:

1) Wearing apparels and clothes;

2) leather goods;

3) cosmetics,perfumes,beauty care;

4) confectionary,chocolate,biscuites;

5) dairies and calenders;

6) crockery,glassware,vase;

7) grocery items;

8) umbrellas;

9) watch and clocks(other than electronics type);

10) toys and games(other than electronics type),dolls;

11) food stuffs;

12) Personal import through Post and Courier in India

Bonafide personal and corporate gifts

Receive personal or corporate gifts package valued upto Rs 10,000/- without paying any customs duty during Diwali,Holi,NewYear,Christmas,Valentine day,birthday,marriage anniversary,Raksh-Bandhan,Eid or any other occasion through postal or courier services at your door step.
A suggestive list of gifts items package can be received without payment of duty are:
1) Wearing apparels and clothes;
2)leather goods;
3)cosmetics,perfumes,beauty care;
4)confectionary,chocolate,biscuites;
5)dairies and calenders;
6)crockery,glassware,vase;
7)grocery items;
8)umbrellas;
9)watch and clocks(other than electronics type);
10) toys and games(other than electronics type),dolls;
11) food stuffs;

12)mobile phone,MP3 player,digital camera,dvd/cd/video player,calculator,electronics watch and clock,electronics toys and game, Accessory of electronics goods, etc ,whose price doest not exceed C.I.F RS2000/-

Key points

* Bonafide gifts valued upto Rs 10,000/- per package
can be received from abroad without paying any customs duty.

· No customs duty and import licence is required for consumer electronic goods gifts of CIF(cost+insurance+freight) value upto rs 2000/- received through post.

· If customs duty on a personal package to be paid is less than Rs 100/- than no need to pay the duty.

· You need not to go the customs department to pay any duty but pay at your home.
No export-import code is required for personal importationmobile phone,MP3 player,digital camera,dvd/cd/video

player,calculator,electronics watch and clock,electronics toys and game,

Accessory of electronics goods, etc ,whose price doest not exceed C.I.F

Rs 2000/-.

Key points

1) Bonafide gifts valued upto Rs 10,000/- per package can be received

from abroad without paying any customs duty.

· 2) No customs duty and import licence is required for consumer

electronic goods gifts of CIF(cost+insurance+freight) value upto rs 2000/-

received through post.

· 3) If customs duty on a personal package to be paid is less than Rs 100/-

than no need to pay the duty.

· 4) You need not to go the customs department to pay any duty but pay at

your home.

5) No export-import code is required for personal importation

pl post me questions for further clarification,if you have doubt

what is bonafide gift
Only goods for which no money paid to the foreign supplier and received as gifts are only qualified as bonafide gifts. If you have paid any money to the foreign supplier than you have to pay the customs duty.

Each parcel is valued as one unit.
one should be careful that bonafide personal gifts upto Rs 10,000/- without any duty is per parcel. In other words, not for individual items of any parcel.

Further,if the goods are for personal use but valued more than Rs 10,000/- than you have to pay duty @17.34%.

commonly imported personal goods as gifts

consumer electronics goods

1) consumer electronics goods below CIF value Rs 2000/-:

cheaper variety cell phone,calculator,camera, dvd/video/cd player, MP3player ,etc, are cleared without paying any customs duty.

2) consumer electronics goods above CIF value Rs 2000/-

In addition to duty mentioned below, you have to pay fine and penalty.

Description of goods Total customs duty payable

Cell phone 4%

MP3 player 18.473%

calculator 21.40%

Digital camera 36.82%

DVD player 36.82%

laptop 17.07%

PDA 17.07%

Personal computer 17.07%

scanner 21.40%

printer 21.40%

All type of data storage 0%
devices

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.

3)LIFE SAVING EQUIPMENTS:

Life saving medical instruments and appliance of electronics nature are not attracting any fine and penalty.As mentioned below,in some cases you have to pay duty.

a) Gluco meter,Stethoscope, hearing-aid and other electronic life saving equipments and appliance which are less than Rs 10,000/- per parcel and are bonafide gifts can be cleared without paying any customs duty.

b) If above mention goods are imported for commercial purpose than Hearing-aid is charged @17.34%, Gluco meter , Stethoscope and similar type medical goods are charged @27.078%.

4)Foodstuffs:

chocolates, biscuits,baby food , mineral supplements and other edibles upto value Rs10,000/- per parcel received as bona fide personal gifts are allowed without any payment of duty.In case of doubt about quality of goods,contamination ,or, as per law in force, the foodstuffs may be subjected to clearance from PHO office of Ministry of Agriculture.

5) cosmetics:

Cosmetic goods received as bonafide personal gifts are allowed upto Rs 10,000/- per parcel without payment of duty.However, certain cosmetics containing Dyes,colours and pigments quantity more than permissible,containing hexachlorophene,lead or arsenic and mercury are not allowed to be imported.(source: section 134,134-A135,135-A of Drugs And
Cosmetics Rules, 1945)

6)Women,girls,boys and men garments and Accessory:

Ladies,gents,boys and girls garments including undergarments made of textile fabric and.Leather goods received as bonafide personal gifts are allowed upto Rs 10,000/- per parcel without payment of duty.

The following items are not allowed to import through post:—

1(a) vegetable seeds exceeding one Ib. in weight;

(b) beer;

(c) tea;

(d) books, magazines, journals and literature which are not allowed to be imported under the Policy for the time being in
force;

(e) goods, the import of which is canalised under the Policy;

(f) alcoholic beverages;

(g) fire arms and ammunition;

(h) consumer electronic items (except hearing aids and life-saving equipments, apparatus and appliances and parts thereof):

Provided that the c.i.f. value of goods imported as aforesaid at any one time shall not exceed rupees two thousand.
(source: FOREIGN TRADE (EXEMPTION FROM APPLICATION OF RULES IN CERTAIN CASES) ORDER, 1993 Minitry of Commerce ,Notification S.O. No. 1056 (E), dated 31-12-1993)

2) second hand or used consumer electronics goods are not allowed