Import of GPS equipments for commercial purpose

Mobile phone with GPS are charged duty @ 4%.
The GPS receiver and differential receiver are charged duty @ 31.011.
Any radio communication equipment require licence from Ministry of communications and IT.
But walkie-talkie sets used in Vehicle are charged duty@ 21.139% and require no licence.

import of PEN and pencil as personal gifts or commercial purpose

All pen and pencil are importable without any licence.Received as gifts are allowed without any duty upto Rs 10,000/-.

If imported for personal use then you have to pay duty @ 17.34%.

But if you are importing for business purpose then the duty will vary according MRP of pen. If the value of a pen is more than Rs 200/- then you have to pay duty@ 34.130%.

If pen value is less than Rs 200/- then duty will be @14.712%. If are paying sales tax on imported goods then you may get refund of 4% on customs duty paid at the time of importation.

Now import of Laptop attracts 7% duty less than the Desktop

Now import of laptop has become cheaper not only on account of rupee appreciation but also non applicability of additional duty of seven percentages .

As per News items in The Economic Times ,18 th Nov 2007 `` the Supreme Court has held that the government cannot levy additional seven per cent customs duty on notebook PCs (laptops) as in the case of desktop computers since the two are totally different. ``

The exact customs notification is reprodued here:

Customs Notification No-38/2005 dated 02.05.2005Amendments in the Computers (Additional Duty) Rules, 2004

7% additional customs duty levied uniformly on computers CPU, monitor, mouse & keyboard
G.S.R. (E).- In exercise of the powers conferred by sub-section (3) read with sub-section (4) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), the Central Government hereby makes the following rules to amend the Computers (Additional Duty) Rules, 2004,
namely:-1. (1) These rules may be called the Computers Additional Duty (Amendment) Rules, 2005.(2) They shall come into force on the date of their publication in the Official Gazette.2. In the Computers (Additional Duty) Rules, 2004,- (i) for the TABLE, the following shall be substituted, namely:-
''TABLE
S.No.
Description of goods
Additional duty rate
(1)
(2)
(3)
1.
Central processing unit (CPU) imported separately
6% ad valorem
2.
Computers (other than CPU imported separately), of heading 8471 of the First Schedule to the said Customs Tariff Act.Explanation. - For the purpose of this entry, 'computer' shall include central processing unit (CPU) with monitor, mouse and keyboard, cleared together as a set; but shall not include input or output devices or accessories such as monitor, keyboard, mouse, modem, uninterrupted power supply system, or web camera imported separately.
7% ad valorem '' ;
(ii) the Explanation shall be omitted.[F.No. B-1/4/2005-TRU]
(V. Sivasubramanian)Deputy Secretary to the Government of India
Note: The principal rules were published vide notification No. 76/2004-Customs, dated the 26th July, 2004 in the Gazette of India, Extraordinary vide number G.S.R. 479(E), dated the 26th July, 2004.re:

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

import customs duty on LCD monitor whether for Computer or TV

There is less custom duty on LCD monitor of computer then the LCD TV.The goverment has issued guideline to diffrentiate between two types LCD display.Pl check techically before importing. In customs parlance the computer is called as ADP. For easy reference the circular is reproduced:
Circular No.33/2007-Cus.
F. No. 528/96/2001-Cus.(TU)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

159A, North Block, New Delhi-1.
Dated 10th September, 2007.
To
All Chief Commissioners of Customs.
All Chief Commissioners of Customs & Central Excise.
Chief Departmental Representatives, CESTAT.
All Commissioners of Customs.
All Commissioners of Customs & Central Excise.

Subject: Classification of Digital LCD / Flat Panel Monitor - Admissibility of Notification benefits - reg.
***

It has been represented by the trade and industry association that certain difficulties have been faced in classification of monitors for use with Automatic Data Processing (ADP) machine and consequent import duty exemption benefits. Doubts have been expressed by field formations as to whether ‘LCD or Flat Panel Monitors, if used along with ADP Machines would be classifiable as ‘ADP Monitor’ and whether exemption from Customs duty vide Sl.No.17 of Notification No. 24/2005-Cus dated 1.3.2005 would be admissible.

2. The issue was examined in the Board. Monitors used along with ADP machines were classified till 31.12.2006, under heading 8471 of the First Schedule to the Customs Tariff Act, 1975. Due to HS 2007 changes brought into effect from 1.1.2007, such monitors are presently classifiable under sub heading 8528 40. All types of monitors and projectors which are solely or principally used with an ADP machine is covered under the sub headings 8528 41(Cathode Ray Tube Monitors), 8528 51(Other types) and 8528 61(Projectors) and are extended with exemption of customs duty vide Sl.No.17 of notification No. 24/2005-Customs dated 1.3.2005. Further, television or video monitors were classifiable earlier under heading 8528. Presently these monitors used as Television or Video reception apparatus are classified under sub heading 8528 71 or 8528 72 as the case may be, and are not eligible for the aforesaid exemption.

3. This issue was also deliberated at the Conference of Chief Commissioners’ on Tariff and Allied Matters, wherein it was decided that the Board may issue guidelines on the basis of assessment practice that is being followed by Customs Commissionerate, Aircargo, Mumbai to distinguish ‘computer monitors’ from that of monitors for use with TV / Video and for classifying the goods under 8528 41 or 8528 51 (earlier classifiable under CTH 8471). However, to ensure uniformity, it was decided that Board could issue a circular in this regard.

4. Accordingly the technical features distinguishing the computer monitors from the other types of Television/video monitors are enclosed. These could be used by the officers of the field formation as guidance for assessment, examination of the said goods for determining its proper classification and extension of the notification benefit.
Yours faithfully,
(M.M.Partiban)
Director (Customs)
Tel.No.2309 3908
Click here for technical features

New Prohibited Export goods

No export of any goods in violation of Trade Marks Act,1999 and rules made there under is allowed.

One has to declare all details including an indication of the country or place in which they were made or produced or of the name and address of the manufacturer or the person for whom the goods were manufactured.If no such detail is found on export goods then it will be not allowed to export.
This is step for higher compliance of Intellectual property involved in export goods.

Import of Travel sets for personal toilet,sewing or shoe or clothes cleaning,Tooth brushes including dental-plate brushes,paint ,distemper,varnish

If you are regular traveler and interested in brushing your teeth,home and canvas. All are freely importable .No fine and penalty.

As far duty is concerned,if you receive them as bonafide gift then up to Rs 10,000/- no duty is payable.

For commercial purpose, Travel sets for personal toilet,sewing or shoe or clothes cleaning are attracting duty @ 34.130% and all type of brushes are charged duty @ 24.421%. If you file refund for 4% paid as ACD(additional customs duty) based on your sales tax invoice then the effective duty will be around 30%.

But if you import through Post and for personal use then you have to pay only 17.34% on brushes and travel set and other item mentioned above

Import duty on Perfumes,Beauty or Make-up preparation for skin,Manicure or pedicure preparations

If you import goods related to beauty and body care then you can import without any duty up to Rs 10,000/- if they are bonafide gifts.If they are imported for personal use than duty is @17.34%. The cosmetic goods are freely importable.No fine and penalty but only duty on these goods

Import for Commercial Purpose

The Drugs and Cosmetics Act 1940 are for regulating and quality of the cosmetic goods.The Standards of Weights and Measures Act,1976 and related rules are for Packaging,labelling and MRP price.In India goods meant for retail selling,then Counter Vailing Duty (CVD) is charged on MRP basis.
A suggestive list for duty on certain goods:

Line make-up preparations @ 34.1307%

Eye make-up preparations @ 34.1307%

Manicure or pedicure preparations @ 34.1307%

Perfumes @ 34.1307%

Hair cream @34.1307%

Hair dyes @ 34.1307%

The effective duty may come down to 30%,if you file refund for 4% ACD after clearance as per procedures.

Import of wine,whiskey,Rum,Brandy,Gin,vodka,Tequila

Big no for importing of wine,whiskey,Rum,Brandy,Gin,vodka,Tequila,liquors through post and courier,whether it is for gift,for personal use or commercial purpose.Lot of non tariff barriers.Even EU has taken issue to the WTO that India charges very high import duty. States are also charging state Excise duty. Specially they targetted Tamil Nadu for excise duty.The beverages and spirits are good source of revenue for our nation.

Customs Duty are charged @182% except wine.Fruits based drinks and soya milks are charged @36.136%. wine are charged @100 %.

Receiving gifts of paintings,sculptures and statutary,antiques,used stamps

There is no restriction on importing paintings,sculptures and statutary,used stamps either as gifts or for commercial purpose.

You can import these items without any value limit by paying 14.712% as customs duty for commercial purpose and personal use.Of course bona fide gifts upto Rs 10,000/- is without any duty.

However,antiques are restircted as per Foreign Trade(Exemption from Application of Rules in certain cases) order 1993 and customs Notification 157/90 dated 28.03.90.

But antiquarian books are free to be imported and without any duty.Normally books of an age more than 100 years are considerd antique.

Gold Coin receiving as Gifts

Import of Gold being currency is regulated by the RBI.No import of gold coin is permissible through Post and courier.They are restricted under FEMA act.Pl do not plan to receive any gold coin as gift,whether they are having carvings of Godess Laxmi and Ganesha.It is certain Banks authorised by the RBI to import gold coin,an addition to government agencies like MMTC.
As far customs duty is concerned it varies between Rs 100/- and Rs 250/- per 10 grams.The excise duty and cess is 8.24% .

But passengers under Baggage Rule and transfer of residence can bring gold coins.Next time,ask your friend not to send gold coin as gifts through Post and courier but bring personally at the of returning to India.

Collectors coins including numismatic value are not allowed to import in India.