Description of goods Total customs duty payable
routers 21.139%
MP3 player 18.624%
calculator 21.139%
Digital camera 34.130 %
DVD player 34.130%
laptop 17.240%
PDA 17.240%
Personal computer 17.240%
scanner 21.139%
printer 21.139%
All type of data storage 0%
devices(all types of drives,cd,digital video etc)
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Wednesday, March 21, 2007
Customs duty after budget on electronics items imported through Post
I did my graduation from IIT Delhi ,Post Graduate Diploma in Supply Chain and Logistics from LIBA Chennai and LLB from CCSU,Meerut.Worked five years in the BHEL then fifteen years in the Customs department.Currently practicing as Indirect Tax Consultant.
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37 comments:
Well first off awesome Blog,really cleared some of my doubts. I just have a couple of Question's.
1)My birthday has just passed and a friend of mine from th Us wanted to send me a Graphic Card Priced $200.
i stopped him from sending it as it might incur duties making the card cost more then it was worth.
1).a if He wants to send it as a gift what documents wold he need to list.
1).b if a duty were to be imposed how much would it be
Thank you for appreciation.If graphic card is send by your friend.Then it is a gift only. your friend should specify that the value for this card is declared for customs purpose.It is bonafide gift ,if you are not paying any money to your friend towards your gift.Therefore, no customs duty if it is less than Rs 10,000/-. The problem will start when Customs will doubt the declared VALUE by your friend.
You can produce price paid in the abroad as a proof. You can challenge the cusoms fixed price before accepting Parcel from Postal departmenmt.
If your graphic card is priced more than Rs 10,000/- in abroad ,then you may pay duty 14.712% on the value.
you may plan accordingly
Thank You for Ur Quick Reply.
just one more question.
1)should he include the original invoice that he gets when he buys the card.
2)and how would he go abt declaring it as a bonafide gift.Any Help Would Be More Then Appreciated.
Let your friend should include original invioce. A covering letter stating that he is sending original invioce WITH that you can prove to the customs authority that the GRAPHIC CARDS are not purchased by you and are bona fide gift.The goods are for personal use and not for commercial sale
Honesty always pay. The customs have access to all international price of all goods.pl write me if have any doubt
hey..ravinder .... i have given an order for a original game cd which costs around $9 from USA...i told the company to send the game cd through global prority mail...do i have to pay customs duty to receive this game cd???your response will be much appreciated...thanking you
great blog...hey ravinder...i have given an order for a original game cd which costs $9 and which is imported from usa...i have asked the company to ship the cd through global priority mail..do i have to pay custom duty for receiving this game cd???your reply will be much appreciated..thanking you...
Dear Vinod,Thank you for appreciation. You need not worry to pay any duty.you will receive your game cd without any duty.pl write me if you are asked to pay.
regards
Hi Ravindra Kumar,
Great Blog..It is very helpful..Let me explain my problem...
I would like to get some Cisco routers and Switches to setup my home study lab to acquire Cisco certification. It will include a total of 10 Routers and each will cost 300-350 US$. How much I have to pay for customs and any other fees applicable. The purpose is for my studies. I have my cousin to purchase these items in US but I am worried that if I send these in a single parcel I get stuck.. Is it better to send them one by one?
Please advise me a better solution and is there any ways to reduce customs duties..
Dear Josh.
Thank you for compliment.There are various option available for you.The choice of option depends on type of transportation mode you choose.As far rate of duty is in question, you have to pay same rate of duty,whether it is post, courier or sea.The rate of duty is around 25% of the CIF(COST ,FREIGHT, INSURANCE).
It is cheaper if you import through Sea BUT IT WILL TAKE MORE TIME to reach into India.But you import through AIR , freight will be more ,hence duty will be more .
you can contact FedEx,UPS,DHL or any other courier company ,ask their quote for delivery in India.
If you want to import through POST,then you can plan one router at a time, then make a comparative study.
I have given broad outline to you.PL give me more detail based on above reply,if you want exact duty liability.
regards
First of all i only need to say is ...what a help this blog has been to me..Well Ravindra i have ordered a remote control electronic toy from u.s which costs 232$ and with the shipping comes around 342$ . i paid a 100$ for shiipping as i am shipping it through ups. The site i have ordered from has told me that they will send me the package as a gift item. Do you think i would be charged for the custom duty and if yes than how much is the custom duty on electronic toys. Also will the custom duty be applicable to the cost of the item or the etire cost with shipping. Please help.
hello ravindra kumar,
The thing is recently I ordered for a Traxxas Stampede XL-5 RTR ( radio control monster truck) from towerhobbies.com (u.s.a). It costed me around $ 232 with the battery and charger which i ordered separately. With the shipping charges it is costing me a total of $ 349 as i am shipping through UPS. I have told them to pack it as a gift item which they agreed but they denied to alter any modification to the actual invoice. Now I would like to know wether i will have to pay for the custom duty and if yes how much % will i be charged. Also will the custom duty be charged on the actual cost of the item or the total cost with the shipping. Please help me.
Regards,
Vikrant.
Dear Vikrant,
Sorry i could not reply . i am relocating my family from chennai to delhi. Therefore I am not accessing mails regularly. Reagarding your issue of payment of custom duty. Your electronic toys price itself is more than Rs. 10,000/. Therefore you are not eligible for duty free import. Further, any consumer electronics goods valuing more than Rs. 2,000/ may attract fine and penalty.
The value of imported toys includes transportation cost for calculating customs duty. There are various methods adopted to arrive value for customs duty. For ex., price declared on the parcel by the foreign sender, value evidence available inside the parcel in the form of invoice, similar toys imported by other person and value available with the customs authority, also, become basis for valuation.
Internet also used for price reference by the customs authority. The only difference is that your price is retail price and customs price is wholesale price of the goods.
The duty on the electronic toys is 14.71%(approx. 15%). You may be asked to pay more than Rs. 1500/ , as customs duty. As there are various options to fix value to determine the customs duty, it is difficult to suggest you exact amount of duty. However, you are requested to read my earlier posts on my blog to get fair idea of cusoms valuation and duty. Kindly write me if u need further clarification.
Regards
Thanks a lot Ravindra.. You really lowered my tesions. I was told by someone that the custom duty on radio control toys ranges from 30 to 40 percent. So i was really tensed about the whole thing. I assume to beleive you more as it is evident that you have really mastered this line. Also if you could let me know the custom duty if i ordered a single piece of electric motor for my Electric truck. Thanks again for all the information. With over one week of search in the net on custom duty i would say your blog has proved to be the most informative. Thanks agin for all your information and help.
Regards,
Vikrant
Hello again Mr Ravindra..
Just today i received my parcel and it went just as you told me. I was charged 1900 INR. Of all the information i got, you provided me with the best and the most accurate answer. Thnaks again mate. I would certainly recommend all to this blog for information.
Regards,
Vikrant
Dear Vikrant,
i am very happy that in some way my blog was helpful to you .
The duty on motor is approximately 35%.If the total duty is less than Rs 100/-,then,also you need not to pay.
If your motor is imported as light mail article(LMA),then ,it may be cleared without payment of duty.Many LMA PARCEL are cleared without Customs examination.
regards
I am interested in importing LCD TV from a manufacturer in China. The weight is 35 Kg and dimension is 1.2mx.5mx.4m. The Invoiced cost is 950US$. Now I want to know: I am trying to get this as sample, I do not have a company, I want to import it in individual capacity, can I do that? Also what kind of Duty/Custom and other cost can be levied on me? it is CIF China. Also if I show it as gift, will it attract custom? Please help me with the custom calculation and any other hidden cost.
Dear Ravidra Kumar,
Thanks for your response.The information you provided id very valuable. I will explain in detail as you requested.
I am planning to setup my home lab for acquiring some Cisco certification. My Cousin is residing in US.I would like to purchase these USED switches and routers from eBay.The price for these items will be high if we purchase from the sellers who offer international shipping. But we can get these items more cheaper if we win the bid from sellers who offer only US shipping. The problem here is that most probably these sellers are individuals and they will not give an invoice. So is it possible if my cousin provide a personal invoice for these items when he is sending it to me?
From your reply it is understood that the customs value will be 25% of Cost+Shipping+Insurance. Can you please inform me that the cost referred for calculating customs duty will be based on the invoice value or the customs dept have any reference value for calculating the customs duty?
Regards
I am interested in importing LCD TV from a manufacturer in China. The weight is 35 Kg and dimension is 1.2mx.5mx.4m. The Invoiced cost is 950US$. Now I want to know: I am trying to get this as sample, I do not have a company, I want to import it in individual capacity, can I do that? Also what kind of Duty/Custom and other cost can be levied on me? it is CIF China. Also if I show it as gift, will it attract custom? Please help me with the custom calculation and any other hidden cost.
I recently sent my Phone which was under warranty back to UK by registered post. RR402262265IN dated 21/04/07 paid Rs 763 as postage. It has not been delivered even though it is a registered. I gave a complaint. No way to trace it!. What will happen to my 15000Rs worth of item? Is there a mechanism to trace? Will there be any opening of tthe packet to takeaway the contents? Is there any compensation if the item is lost?
Can u help.
Thanks
venu
Dear Dega,
Donot worry.you can trace your parcel on the Postal department website.
further ,there is helpline in the foreign post office and is available on there website.
you can contact Director (foreign post). There are many reason for delay in receving your parcel.
pl go through my earlier post and comments, you will get fair idea of your issue.
If you donot receive your parcel,
pl write back to me to explore further reason for delay.
regards
Dear Uttam,
pl donot import through Post.it attracts fine and penalty in addition to duty through Post.
You may import through Air cargo.
regards
Dear Josh,
Used goods attract fine and penalty in addition to duty. you have to arrange chartered engineer who has to fix price. PL take this into account before making any decision.
regards
Hello Again Mr. Ravindra Kumar,
I'm getting confused. Let us make it simple... If I want to import a used device with the details below
Value of Used item: US$400
Shipping : US$185
How much I have to pay for customs. What you mean by fine and penalty?
Regards
Recently I purchased some children's educational DVDs from Amazon and shipped them using DHL. I had to pay customs duty. I needed some clarification and I came across your blog while searching on the net. You have done a great job of presenting the information and I like the way you are taking time off to help people by answering their questions. I really appreciate your efforts. I wouldn't mind showing my appreciation by paying for your few minutes.
I understand that you are busy with shifting to Delhi. I have few questions. Is it a good time to ask?
- Thanks,
Rajesh
Dear Josh,
sorry for late reply.
If any body import Used goods then he has to pay Fine and penalty,in addition, to Customs Duty.
As far duty is concerned, most of the items attract duty around 35% of the Value.This includes fluctuation in foreign exchange and resulting increase in rupee value of the goods.
with regards
Dear Rajesh,
certain software are duty free and some are charged duty.If your software falls in the category of Duty free, then , you can apply for refund of duty.
pl forward detail of software description,Invoice , intimation from Courier company,duty challan and plcae of Customs clearance.
you can file claim within six months from date of duty payment.
with regards
Thank you for your response.
The DVDs that I imported were not software DVDs. They were animated movies (Magic School Bus series about science) and dance DVDs (live performance and lessons).
* To the best of my knowledge, pre-recorded VCD/DVD don't have any excise duty. But there is a basic customs duty of 7.5%. But I was charged 10% for BCD and 16% for excise/CVD.
* Invoice value used for duty calculation is take as customs value + freight charges (CIF). Is this correct? Since I used priority international, the freight charges were high too. Hence duty was higher too.
Thanks again for taking time and responding. I hope shifting to Delhi has taken place smoothly.
I do mean it. Your service is valuable. May be you can think about putting PayPal link for accepting money.
Thanks,
Rajesh Babu
Dear Sir,
I am importing a cell phone worth 520 USD with 80USD as shipping by UPS. How much Duty I have to pay?
Regards
Bhat
gkbhat@gmail.com
Sir, is the the custom duty for storage drives really 0%, or was that a typing mistake?
Dear Arun,
It is fact.Even though the rate of duty are subject to change .pl feel free to write me if you come across where duty on storage item is more.i will update myself.
with regards
ravindra kumar
Dear Gopalakrishna,
It is not adivseable to import any consumer electronic goods through Post,if it is valued more than rs 2000(cif).As import of such item are restricted through Post.you may have to pay very high fine and penalty, in addition to Customs duty.The Customs duty is very less compare to quantum of fine and penalty you are likely to pay. Further , there will be delay in clearance, as you will receive show-cause notice from customs department and other related problems.
it is better if you import throgh Air cargo and clear without any fine and penalty.you have to same rate of duty,which is less than 10%,whether you import through post or air cargo complex.
pl write me ,if you need more clarification.
regards
ravindra kumar
I must say your blog is such a help to many people thanx ,
I have an question, I just bought a mobile phone of ebay from United Kingdom worth 235 pounds shipping is 12 pounds , it is slightly used , so how can custom officials figure out if it is used or new? as it is still in plastic, Also what is the difference between getting it by post and by air cargo ?is air cargo company like DHL FEDEX ???? what would be the duty if i get it by post?
thanx again
Dear GUYZ,
It is through Physical and VISUAL inspection of the Mobile Phone ,it is ascertained whether it is used or old.
Since your Goods being second hand, it will attract Fine and penalty,in addition to Duty ,irrespective of fact whether you import through Post,courier or Air cargo.Duty will be same for all mode of importation for second hand good.
It is different story,if it is New Mobile phone and costing more than Rs 2000/(cif),in that case, if you import through Air cargo and Courier, then you need not to pay fine and penalty.But to import through Air cargo ,you need import-export code.
In the present case, you have to decide based on Freight cost and time delivery of the goods.
regards
ravindra
Dear Arun,
pl see my blog of Friday, March 02, 2007.It contains some address of foreign post offices.One more link given below;
http://maharashtrapost.gov.in/htmldocs/publicgrevances.htm.
pl take help of local post-office or GPO. you can get easily in local directory.
regards
ravindra
HEy Ravindra Kumar,
I'm importing a graphic card from us valued 310$+shipping through fedex which costs me 80 $ more
this is a gift from my sister staying in US.
1.will this attract customs duty ?
If so how much?
2.Will the official come to my place to deliver the card and collect the customs duty there itself or will i have to go to post office to collect them?
3. As it is through post ,Will i have to pay extra fines?
Dear Kalyan,
If the grahic card is in ppcb form ,then it is part of computer.The customs duty @ 21.139%.It is not consumer goods.In my opinion no fine and penalty.
regards
Ravindra
Dear Kalyan,
The postman will deliver at your doorstep and collect duty before delivering to you.
regards
Ravindra
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