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.