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Sunday, March 16, 2008

No change in duty on personal import in the Budget 2008-2009

The duty on personal import is 17.34% of the value,as it was before the budget.No duty on life saving drugs for personal use.The gifts are free upto Rs 10,000/-.
Happy importing!
Ravindra Kumar

49 comments:

Anonymous said...

Dear Mr Kumar,

Your blog is great, very helpfull indeed.

I hope you can help me with a query.

I purchased some vitamin/dietary supliments on E-bay. i paid via paypal. The item was shipped on 27th feb by USPS.

I have not received it yet. I called customs who asked for a tracking number. Which the seller on e-bay said was not available. They're now brushing off the incident as a 'typical indian customs delay'.

What can i do to track the package, it's under 2 kilos and i'm in Bombay.

I spent 165 $ including shipping on it, and i'm very anxious. Please do help if you can.

Many thanks,
T.S.
hope to hear soon, cheers.

Global Tax Guru said...

Dear Anonymous,
Thanks for your feedback.Normally speed parcels or insured parcel are assigned number by the postal department.If any parcel is detained by the customs,then,also postal and customs department assign their numbers and will communicate with you.
Nothing to worry. your item is regular import.But many times it not cleared whether particular food supplement is energy drink or in nature of medicine,etc,.In such situations,they have to take opinion from expert from Ministry of Agriculture whether particular item is fit for human consumption ,or, from Assistant Drugs controller to know whether it is drug or not.
You will appreciate many fungus,virus,bacteria or other organisoms may penetrate into India and damage our rich biospere.
Donot worry,you will recive your parcel.
warm regards
Ravindra Kumar

Anonymous said...

Dear Mr Kumar,

Thank you very much for your prompt response.

I shall keep you updated. Till then do continue on this very worthy undertaking of blogging on this subject.

Wishing you the very best.

regards
T.S

Global Tax Guru said...

Thank you very much.
Ravindra Kumar

Anonymous said...

Hi Mr Kumar
Your blog is very helpful to know about the tariff and all.

Me too Have a query about import license.Does any one need a license for getting a gift from abroad through post,and is it necessary to pay the duty if the cost of the product clearly mentioned in the package?
My friend sent me a sound card which he got cheaper on E bay, it costs around $50 and weighed 5lbs and paid $34as postage.I received a registered letter stating that the above product is detained by the customs and I need to explain on why I imported the thing with out a valid license, and they wanted know the price and purpose of the product, and they valued a cost of $84.And imposed a duty of Rs 1012/- now, which I have paid to release it.I want to know can I get the imposed duty back? if write to the Higher official, and which clause of Customs law should I quote?

Hope you can give some direction in this matter.

Thanking you

Ramesh

Anonymous said...

Hello Mr. Kumar,

I have to first say that I'm extremely grateful I happened to stumble onto your blog which is well written and extremely helpful. Great work.

Now I hope that you may provide me some help with my problem.

I am an Indian National but currently employed in Dubai. I ordered a Wedding Dress off Ebay and paid for it using my Paypal account. Now this is where I think I messed up. I asked for the item to be shipped home to Goa, India where I will be getting married.The dress cost me USD 295.
It was shipped on 11th March via USPS and as per their website, using my delivery confirmation No. I have been informed it arrived "into foreign customs in India" on the 14th.

Now for the past 10 days it still displays the same info.

My questions are these:
1) Approximately how long does it take for the customs to process?
2) Will the customs duty be 17.34% as its a personal use item?

Your expert insight will be much appreciated.

Thanks,
Ms. V Pereira

Global Tax Guru said...

Dear Ms. V Pereira,
The parcel may be on the way to your house.Most probally,your parcel after getting clearance from the Mumbai Customs,may be getting transported through Rail.
If you donot receive any information from the customs or postal department then,most likely, your parcel is not detained .You have to pay duty at the time of receipt.
Normally textile article are cleared,but,some time ,they are detained for ascertaining value of the dress .if found to contain,dangrous dies,them they may detain.What ever happen ,you will be informed.
The duty on personal goods is 17.34% .
pl do not worry,delay may be due to lot of festval holiday in India.
Write to me for doubts.
Wish you happy wedding wishes
warm regards
Ravindra Kumar

Anonymous said...

Thank you so much for your prompt reply Mr. Kumar.

Its a reassurance to get factual information from someone who knows what they are talking about.

People I have spoken to about this have been scaring me with horror stories about the post! However I would like to think positively about my situation and our Indian Public Utilities. :)

Thanks once again for your help and kind wishes. I will keep you updated on the situation so that it may help someone else as well.

V Pereira.

Anonymous said...

Hi Ravindra,

I had sent one courier from UK as a birthday gift to my relative in india, near delhi. The package had some dresses, 1 t-shirt, one plastic bangle and one silver jewellery set. The entire cost of package which i declared (and very true) was 184 GBP ( which is around 14720 Rs.). Now i came to know from my courier company that there is a clearance delay and duty that has been put on my package is 4786 Rs. which i am not able to understand why. As i can see in ur blogs that upto 10000 Rs value there is no duty and above that it is around 17.5 % . Could you please help me. or atleast provide any contact over there in delhi whom i can call to get some help.

Thanks a lot
Himanshu
London

Global Tax Guru said...

Dear Himanshu,
The exemption upto
Rs 10,000/- is for whole parcel value.In your case ,the value of parcel is more than Rs 10,000/-,hence duty exemption cannot be extended.
Regarding duty charged,
the Customs might have increased value of your goods believing that you have declared less value to evade duty.
Pl see my earlier post in the blog ,you will get idea ,how the goods are valued and what you have to do in case higher duty is collected.

Ask your courier company in India how the goods are valued,whether each article charged seperate duty.Specially,what is price of silver jewellary is fixed by the Customs.
Still if you feel that the your price is true then you can request to The AC/DC( customs)Courier,Delhi,through your courier company to revalue your goods and charge less duty.
Provided that you can produce documentary proof of value of articles imported.
warm regards
Ravindra Kumar

Anonymous said...

Thanks. What i was asking even if value of my goods is more than 10000 than shouldn't it be the case that they put duty on the amount in excess of 10000 which is around 4720 (14720-10000). Or they might have considered my courier is a commericial one and hence charged somewhere around > 30% of total value (could it be the case as i had booked the parcel through some agent).

Global Tax Guru said...

Dear Mr.Himanshu,
There is no deduction as you understand.You have to pay duty on whole value of Rs 14720/-.In your case,i donot how much value of the parcel has beed determined by the Customs.
Regards
Ravindra Kumar

Anonymous said...

Hi Ravindra,

I had a talk with the courier guy, they said they have calculated the duty as per my invoice plus they have added certain other things in the duty structure and calculated the duty on that. They had added some landing duty, some CSV (may be i m wrong with the word) and they calculated the entire amount to be 17000 (not exact) and then put some 24 % on the that and that comes around 4600 rupees. Is it all fine or do i need not approach any body?

Global Tax Guru said...

Dear Himanshu,
If you have declared your price equivalent to your purchase price,then, it is called FOB price(cost).
To arrive CIF(cost,insurance and freight) value of goods, 21.125% of the FOB value is taken as freight and insurance.
Then another 1% is added into CIF value to arrive assessable value on which customs duty is charged.
If you paid less than 21.125% as freigt and insurance,then you may ask your courier company to revise assessable value.
But your goods may be delayed in clearance.
pl decide after evaluating all options.
warm regards
Ravindra Kumar

iamsayan said...

hello ravindra,
let me congratulate you on your wonderful and useful blog .. i stumbled upon by chance, looking for custom rules on the net
i am plannng to buy a tripod for my camera(hobby) from a taiwan based company(http://www.feisol.com/). the price of the tripod is 399 USD , as I understand from your blog, yr duty on this will be 17.5 % is that correct? also, the company ships using EMS POST which i think will come to the normal indian post.will the customs send me a bill for the duty with the post office or do i have to go somewhere and pay it?

Anonymous said...

Mr. Kumar,
I thought i'd inform you that my gown has arrived!

It was delivered as neatly packaged as it was sent.Just for general info, I had to pay a total duty of INR 1780. The postman informed my mother and she had to go to the our Post Office to collect it. It took 21 days from the time it was posted to arrive safely to my house.Brilliant.

Thank you so much for your helpful and kind words when I needed reassurance Mr. Kumar.

Please continue your excellent work on this blog.It is much appreciated.

I have one more question. This one is out of curiousity. Is it illegal to import peacock feathers to India? I keep hearing conflicting information.

Thanks again,
Ms V Pereira

Global Tax Guru said...

Dear Ms V Pereira ,
Thank you very much for feed back and sharing your experience.

Import of peacock feather is permissible but need clearance from Wild life department,under CITES(convention of international trade in Endangered species of wild fauna $ flora).
Warm regards
Ravindra Kumar

Anonymous said...

Thanks for your response Mr. Kumar.

Anonymous said...

Hi Mr. Kumar,

I had written to you earlier (pls reff first post in this trail) regarding some dietary supliments and vitamins i had ordered via ebay.

The package has still not reached me, and customs is not giving any information, neither the seller. It seems like i'm another victim of inefficient customs in our country. I have not been contacted by them for any extra info. They don't give clarity to how i may track my package.

How do i get my package. Who should i be speaking to? What is the redressal process or complain department.

Please do help me. I'm very anxious.

Thank you

T.S

Bombay.

Unknown said...

Hello Ravindra Ji,

You really have a nice blog and more than that a very nice attitude to help others.

I am planning to sell books, gift items, paintings and garments through website on a very small scale. I am based in India.
1. Since I will be selling directly to consumers (end users) for personal use and the selling price (without freight etc.) will be less than Rs.10,000/- per consignment, do I need IEC number ?
2. If yes, is there any customs duty or any charges involved in sending these goods apart from freight ?
3. If I ship these items through post, do I need to go through lengthy export documentation process ?
4. Since I will be pricing the items including the freight, do I need to mention the price and freight separately in my invoice or should I mention the price that I have displayed on the website ?

I would be highly obliged if you can guide me.

Manish

Anonymous said...

Dear sir Thanks for the helpful information
Could you help me with my query
My friend have a used laptop (tablet pc) which he has purchased on ebay for rs. 8200/- aprox.
the courier will be 100/- $ (aprox 4000/- rs.)
if he sends it to india as gift, on what value will be the custom duty applicable ?
will it be calculated on CIF value?
i am willing to pay the custom duty, what will be the aprox. duty

thanks
M Sheikh

Anonymous said...

Dear sir Thanks for the helpful information
Could you help me with my query
My friend have a used laptop (tablet pc) which he has purchased on ebay for rs. 8200/- aprox.
the courier will be 100/- $ (aprox 4000/- rs.)
if he sends it to india as gift, on what value will be the custom duty applicable ?
will it be calculated on CIF value?
i am willing to pay the custom duty, what will be the aprox. duty

thanks
M Sheikh

Aakhunaten said...

Hi,

I was wondering if I have to pay a lot of custom tax if I were to buy a new latop from an online store abroad and had it FEDEXed to India. It is for personal use ofcourse.... or would it make sense to have it shipped through FEDEX by a friend as a gift.

Thanks.

Santhosh said...

Hi ravindra,


My name is Santhos. I want to buy 'HTC TYTN II pocket PC phone'. In one of the website I have found that the cost of phone is $250-if I get it shipped within UK or USA. If it is other countries it is $320(this includes shipping) cost. Could you please tell me which one would be the best way to get the phone.

i)If I ask my friend to get that phone as he is travelling down to india for holidays from UK,In this case can he carry newly purchased phone telling that it is personal or still he has to pay any duty,if yes how much he has to pay. How many phones he can carry at a time & please tell me what procedure he has to follow to get it.


ii)If i get it shipped directly from seller by paying $320.


iii)if i ask my friend to ship within UK & send personal courier to me.

I kindly request you to answer each case pros & cons in detail as i dont know anything about import.

Anonymous said...

Dear Ravindra, first of all thanx for this very informative blog.

I've been importing lot of low value items from Ebay members in Honk Kong - mostly usb flash drives, card readers etc. for me and my friends. I've never been imposed any custom duty. Just out of curiousity I want to know if there is a limit on the number of items you can recieve as gifts. Do the customs officers keep record of imports of individual persons?

Anonymous said...

Dear Mr. Kumar,
I recently ordered a model plane, for educational use, from ebay for $170 (+53 shipping). The item is being shipped from china. Only after placing the order did I find out about the horror stories of items going missing/delayed @ foreign customs in India. What will be the duty (if any) on this item and what should be listed on the package to expedite processing/evaluation?
Warm Regards.
R.G

Global Tax Guru said...

Dear Mr.R.G
PL donot get panic.The parcel containts cannot be stolen by customs. The goods are in custody of Postal or courier department and they produce to the customs authority for customs clearance and again goods are sealed by them.Most of theft take place during transition within country.
I have dedicated post for toys and applicable duty. The goods for personal use,duty as mentioned in the post.
wish you all the best.
Ravindra Kumar

Global Tax Guru said...

Dear Mr.R.G
PL donot get panic.The parcel containts cannot be stolen by customs. The goods are in custody of Postal or courier department and they produce to the customs authority for customs clearance and again goods are sealed by them.Most of theft take place during transition within country.
I have dedicated post for toys and applicable duty. The goods for personal use,duty as mentioned in the post.
wish you all the best.
Ravindra Kumar

Global Tax Guru said...

Dear Mr.R.G
PL donot get panic.The parcel containts cannot be stolen by customs. The goods are in custody of Postal or courier department and they produce to the customs authority for customs clearance and again goods are sealed by them.Most of theft take place during transition within country.
I have dedicated post for toys and applicable duty. The goods for personal use,duty as mentioned in the post.
wish you all the best.
Ravindra Kumar

Global Tax Guru said...

Dear Mr.R.G
PL donot get panic.The parcel containts cannot be stolen by customs. The goods are in custody of Postal or courier department and they produce to the customs authority for customs clearance and again goods are sealed by them.Most of theft take place during transition within country.
I have dedicated post for toys and applicable duty. The goods for personal use,duty as mentioned in the post.
wish you all the best.
Ravindra Kumar

Global Tax Guru said...

Dear Mr.R.G
PL donot get panic.The parcel containts cannot be stolen by customs. The goods are in custody of Postal or courier department and they produce to the customs authority for customs clearance and again goods are sealed by them.Most of theft take place during transition within country.
I have dedicated post for toys and applicable duty. The goods for personal use,duty as mentioned in the post.
wish you all the best.
Ravindra Kumar

Global Tax Guru said...

Dear Mr.R.G
PL donot get panic.The parcel containts cannot be stolen by customs. The goods are in custody of Postal or courier department and they produce to the customs authority for customs clearance and again goods are sealed by them.Most of theft take place during transition within country.
I have dedicated post for toys and applicable duty. The goods for personal use,duty as mentioned in the post.
wish you all the best.
Ravindra Kumar

Global Tax Guru said...

Dear Mr.R.G
PL donot get panic.The parcel containts cannot be stolen by customs. The goods are in custody of Postal or courier department and they produce to the customs authority for customs clearance and again goods are sealed by them.Most of theft take place during transition within country.
I have dedicated post for toys and applicable duty. The goods for personal use,duty as mentioned in the post.
wish you all the best.
Ravindra Kumar

Global Tax Guru said...

Dear Mr.R.G
PL donot get panic.The parcel containts cannot be stolen by customs. The goods are in custody of Postal or courier department and they produce to the customs authority for customs clearance and again goods are sealed by them.Most of theft take place during transition within country.
I have dedicated post for toys and applicable duty. The goods for personal use,duty as mentioned in the post.
wish you all the best.
Ravindra Kumar

Global Tax Guru said...

Dear Mr.R.G
PL donot get panic.The parcel containts cannot be stolen by customs. The goods are in custody of Postal or courier department and they produce to the customs authority for customs clearance and again goods are sealed by them.Most of theft take place during transition within country.
I have dedicated post for toys and applicable duty. The goods for personal use,duty as mentioned in the post.
wish you all the best.
Ravindra Kumar

Global Tax Guru said...

Dear Mr.R.G
PL donot get panic.The parcel containts cannot be stolen by customs. The goods are in custody of Postal or courier department and they produce to the customs authority for customs clearance and again goods are sealed by them.Most of theft take place during transition within country.
I have dedicated post for toys and applicable duty. The goods for personal use,duty as mentioned in the post.
wish you all the best.
Ravindra Kumar

Unknown said...

Dear Ravindra, is there any cap on the number of gifts an individual is allowed to recieve? Does the customs department maintain records on individuals?

Global Tax Guru said...

Dear audipp,
No limit for bonafide gifts for any person.No record is maintained in individual name but
customs and postal department record all transaction.Any fraud is suspected ,then ,record of individual can be traced and adjudicated.
regards
Ravindra Kumar

Anonymous said...

Dear Mr Kumar,

Really appriciate your well written and useful blog.

I had a query, does one need a IEC codec for importing ten or more pieces of mobile phones(for example from China). If so what are the requirements for obtaining a IEC code, does one need to have VAT/TIN number etc?

Do you offer your consultation services on a regular basis for businesses?

Thanks,
RS.

Global Tax Guru said...

Dear RS,
Thanks for kind appreciation. I do regular business consulting.
If you wish to import regularly,you are advised to get IEC code. It is very easy to get it.Visit DGFT website or nearby office.You need address proof in prescribed format from your bank,Age proof and pass port size photographs.
For further sale of imported goods in India ,you require VAT/TIN , to pay State tax,depending upon particular State.
warm regards
Ravindra Kumar

Anonymous said...

Hi,

I have another query, how does one appeal customs duty ?

My brother had purchased a camera in US for me and sent it as a B'DAy gift, the from address on package is his and i have a copy of his invoice. The camera cost him $170. The customs have valued it at $450 (even above MSRP in USA) and taxed it which is totally outrageous.

I have a paid receipt from amazon.com and bank of america showing its true value. They have classified it as a camcorder even though it says digital still camera all over it.

Also i had read that digital cameras attract zero duties as they are IT products, is it true ?

What all IT products attract 0 duty ?

How can i challenge the duty assessment ? Is it a lengthy procedure ? What if they ask for a bribe ?

P.S. It was sent by USPS parcel post.

I am sure your answer to these questions will be helpful to a lot of people.

Anonymous said...

Dear Kumar,

A friend of mine is coming from abroad and I want him to bring a spare part valuing USD 200/- with him.

Will there be any duty, what are the documents he should carry and what are the formalities with Indian customs.

JJ

Global Tax Guru said...

Dear JJ,
It is open ended question.What are spare parts?
Difficult to answer without proper clarity.
You can assume duty approx 34% of value.
regards
Ravindra Kumar

Anonymous said...

Why didnt you publish my question ?

Global Tax Guru said...

Dear Tinka,
your question already published on 1,july 2008.
As per world customs classification rule,including India,the digital camera and camcorder fall under same sub tariff heading 852580.But both are further sub diveded .digital camera tariff 85258010 and camcorder 85258020.
Now come to conclusion whether you have paid excess duty or not,it is to be ascertained that whether any fine and penalty was included in the amount you have paid.

If you see my blog,i have written many posts,where it is said that
any consumer electronic goods valuing more than Rs 2000/-(CIF) is restricted through POST.
You are advised to verfify from foreign post office,how they have determine duty and value.
Procedure for filing refund claim is also available in my blog,if you see main page.
regards
Ravindra Kumar

Anonymous said...

Ok thanks, I really appreciate your reply.


"If you see my blog,i have written many posts,where it is said that
any consumer electronic goods valuing more than Rs 2000/-(CIF) is restricted through POST."

So it wouldnt have been a problem if i had imported through DHL,Fedex etc. ?

Also what do you mean by "However,there is change in sub tariff heading from 852540 to 852580 for digital still camera." in your latest post ?

Also i am thinking of buying a psp from abroad and get it shipped, as its around 8000 rupees, should i use the courier route ? Also what duty is chargeable on it ?

Thanks once again for your great service :)

Global Tax Guru said...

Dear Tikna,
Courier is better for consumer electronics valuing more than Rs 2000/-(CIF).
IT is not clear what do you want to import.
regards
Ravindra Kr

ravi said...

sir,

wanted to know if i were to get a amplifier (rs18000) from the us paying postage of Rs8000 what will be the duty calculation for personal import

thanks
ravi

Global Tax Guru said...

Dear Ravi,
Pl see my site www.globaltaxguru.in for desired infromation.
Regards
Ravindra Kumar

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