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Sunday, September 17, 2006


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

22 comments:

Riaz said...

Hello,

I have seen conflicting information to yours on the CBEC website where it states that gifts are duty free upto RS 5000 instrad of your stated RS 10000. Which one is correct?

http://www.cbec.gov.in/cae/js-menu/imp-gifts.htm

Global Tax Guru said...

Dear Riaz,
the limit has been increased form rs 5000/- to rs 10,000/ with effect 1 st march 2003 vide notification number cus 28/ 2003.(this is available on the cbec website). the original notification is cus 171/93.this notification has been amended on 1 st marh 2003. threrfore current limit is only Rs 10,000/-

Riaz said...

Thank you Ravindra. I really appreciated your advice and help.

Dinesh Kumar Agrawal said...

Indeed your web us very informative.

Keep logging.

Dinesh Kumar Agrawal said...

Your Blog is indeed very informative.

Keep posting

Global Tax Guru said...

Dear Dinesh and tathastu consultants
Thank you very much for your feedback and appreciation.

Raveendra said...

thanks for providing the information

Unknown said...

carrying Indian Currency back to India:- Hi I was travelled to Singapore with 1 lac rupees(actually I withdrew the money from my mom's account to be deposited in my bank account for homeload settlement) on the day of my travel but unfortunately I could not deposit in my own account since that day it was a public holiday and bank was closed.
As leaving money at empty home in India was risky I travelled with it. Now I am returning back to India and was wondering if I can carry the same withour any problem.

The money(bundles of 500 notes) is intact with bank seal proving it genuine. Let me know if you know what the rule is.

thanks in advance.

regds,
Rishy.

Global Tax Guru said...

Dear Vishwadeep,
The currency are governed by the RBI.As per Regulation 3 of the Foreign Exchange Management(export and import of currency)Regulation,2000, no body is allowed to take outside India more than Rs 5000/-.Therefore,there is violation.
You could have declared to the customs authorities at the time of departure from India.
you are advised to approach your Bank and RBI for further help.

warm regards
Ravindra Kumar

Anonymous said...

I am a US citizen and want to go to India to buy items and carry back in luggage, am I allowed only 10,000 rupies in value total..?

Doesn't seem like a lot...

Thanks,,
Don

Unknown said...

Hi,
I just shipped a perfume giftset ( perfume & aftershave 2.5 ounce each) to India directly from the perfume company itself. They are not sure if I will have to pay customs duty on it. As per your website I can assume that there will beno customs duty on it. Am I right? the cost for the gift set was $36.00 and shipping $11.95. I would appreciate your response very much. Thank you
Regards,
Shinu
shinu_beth@hotmail.com

Anonymous said...

Dear shinu,
I have replied on your mail. your gift falls under duty free category.
regard
Ravindra Kumar

Anonymous said...

Dear shinu,
I have replied on your mail. your gift falls under duty free category.
regard
Ravindra Kumar

Anonymous said...

Hi, I sent parcel from Australia(used laptop) to my friend in India, does it need pay custom duty and if yes.. how much?

Global Tax Guru said...

Dear Anonymous,
Duty on laptop is 17.240%. USED LAPTOP are not allowed to be imported.So fine and penalty in addition to duty will be charged.
Value of Laptop will be fixed by the Customs ,may ask you to arrange CE certificate for valuation.
regards
Ravindra Kumar

Anonymous said...

Hi, Ravindra.
First of all my many time thanks to you for your brilliant efforts to keep a very informative and useful blog. My friend has sent me a laptop from australia, and i have received a letter with a number on it from post office, it said Foreign Post Office has my parcel which i have to get by paying some custom duty. The parcel contains a used laptop and it is a gift. It is around 290$ priced, so i would kindly like to know how much duty i will have to pay to get my laptop, and what other things they would require and as you mentioned he CE certificate , what is it ? and how does the custom department evaluate the price on which to apply the custom duty. Thank you in advance for your promptly reply

Global Tax Guru said...

Dear Mr.Nimesh,
The CE is chartered Engineer certificate,who gives his opinion after seeing condition of your laptop.To decide next course of action,better you visit Foreign post office and get information ,whether the customs department require you to arrange CE certificate or themselves fix the price based on supporting evidence provided by you.
Normally if you have braned laptop and actual purchase invoice,then ,depreciation is given for each year usage such as 1st year 16%,2nd year 12%,3rd year 10%........Maximum is 70% depreciation is allowed.
Based on above guideline you may asceratin probable price .Rate of duty is already written in above reply.
warm regards
Ravindra Kumar

Global Tax Guru said...

Dear Srikanth,
Even you get free of cost, you have to pay applicable duty.
i am reproducing below post of blog on import of ipod written by me :
Wednesday, August 20, 2008
Customs duty on iPhone
iPhone is a smartphone made by Apple that combines an iPod, a tablet PC, a digital camera and a cellular phone. The device includes Internet browsing and networking capabilities. The principal function is telephony.Thus iPhone is classified under CTH 8517 12 and attracts duty of 4% in lieu of sales tax/VAT/Local tax,etc.In addition to this , 1% duty as National Calamity Contingent duty on iphone is charged in India.
It is advisable not to import iPhone through Indian post as iphone ,being consumer electronics goods and valuing more than Rs 2000/(CIF),are restricted.Attracts fine and penalty ,in addition to duty,on iPhone.But through postal you have to pay less freight ,so less value and less duty. Choice is yours.
Ravindra Kumar

Praniti said...

Mr. Ravindra,

My friend is sending me a gift(plastic and tin cookie cutters) worth $38, and the shipping + registration is $50 from US to Delhi. This is the first time I'm receiving a gift from abroad and found your blog very helpful. Just wanted to confirm that for this price (since it converts to less than 10,000 rs), I will not be charged any customs or any other amount on the receiving side...right? Also, what should be the amount declared by her in her customs form? $38 or should it include the shipping charges?

Your help is much appreciated...thank you

Praniti

Global Tax Guru said...

Dear Praniti,
If it is bonafide gift,then actual value of goods to be declared.Shipping charges to be shown seperately.The maximum shipping charge through air is 25% of the FOB value for determing value for calculating duty.
regards
Ravindra Kumar

Praniti said...

Mr. Ravindra,

Thank you so much for your reply. So, does this mean that if the shipping charges exceed 25% of the price of the gift, the remaining are included in the total value of the gift? If not, then what?
Thanks for your patience,
Praniti

Global Tax Guru said...

Dear Praniti,
Pl see my dedicated post on valuation for more clarity. Just in brief,the customs duty are charged on assessable value. It is calculated as sum of Cost of goods,insurance and freight as C.I.F,then, 1% of C.I.F is added as landing charge.Thus, assessable value is sum of C.I.F and landing charge.
The freight amount in the above value is taken as least of actual freight or 25% of the cost.

In your case,excess freight more than 25 % of the cost will not be added in the value of the goods.
regards
Ravindra Kumar

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