You should send or receive gifts but not tension or worries.
Sending and receiving gifts are very personal and emotional issues in ones life.If you are likely to receive gifts from a friend or relatives or for that matter any person, from any place out side India,or,sending gifts to any place out side India. There are ways and mean to receive or send gifts without any worries. Only ,you need to have plan and get awared to existing laws and practice related to import and export of gifts in India.
Mainly ,Indian Customs is for leving and collecting duty on goods, DGFT is for deciding imortability and exportability of goods , and RBI is for
foreign exchange related to such goods.
Large number of gifts and goods for personal use are imported and exported through Post, Courier and Air.
It is advisable to be in touch with websites of Govt of India to have information on issue related to Gifts. In addition to this , you may visit my blog ,www.personalimport.blogspot.com , which i am writing since 2006.
To check whether you are eligible for free gifts ( without any duty) ,or, liable to pay duty,or, liable to pay fine and penalty in addition to duty,or,gifts being
prohibitive in nature and will not be released by Customs. You may visit my site www.globaltaxguru.in and select your mode of import such as Post, Courier, and Air cargo. If you have selected Post then default screen will have
Personal Button as selected, you have to select Gift then enter product name,and, submit, you will get desired information.
In case you are selecting Courier or Air cargo then you have to follow this procedure: enter product name, select product, you will know customs classification, merit rate of duty, licencing conditions. If goods is restricted then you have to pay fine and penalty ,in addition to duty( If any), if you are not producing licence from DGFT. Prohibitive goods will not be released by the Customs ,even they are send as gift.
Important laws govering gifts are:-
For Licencing:
-Import of Gifts - Para 2.19 of Foreign Trade Policy (FTP) ,27th August 2009 - 31st March 2014,
Import of gifts shall be permitted where such goods are otherwise freely importable under FTP. In other cases, aCustoms Clearance Permit (CCP) shall be required from
DGFT.
- Export of Gifts, - Para 2.32 of Foreign Trade Policy (FTP), Goods, including edible items, of value not exceeding Rs.5,00,000 /- in a licensing year, may be exported as a gift.
However, items mentioned as restricted for exports in ITC (HS) shall not be exported as a gift, without an Authorisation.
For Customs Duty :
I- No duty for Gifts
a) Bonafide gifts imported through Post and Courier- Upto Rs 10,000/-, No duty.
(Notification No 171/16.09.93(Amended)
b) BAGGAGE- Gift and donations -Relief goods and edible material-No duty
( Notification No 148/ 13.07.94)
Gifts to Ministers and Public Servants- no duty- Notification No 326/23.12.83
II- NO duty- for Life Saving Drugs for Personal use import by Post or Air
(Notification no 21/2002 ,S.NO.403,CONDITION 8, List 4.)
III- No duty-Post Parcel import for personal use value not more than Rs 100
(Notification no 21/2002 ,SN NO. 406.)
IV- No duty – On used bonafide personal effects of deceased Persons
(Notification no 21/2002 ,SN NO. 405.)
V- No duty- on Foodstuffs imported by person residing in India, but not being Citizen of
India, upto Rs 1,00,000/- in a Financial Year-
[ Notification No 207/17.07.89 ( Amended)].
VI- No duty- For buying goods at Duty Free shop upto Rs 5000/- per passanger per visit
(F.No. 495/7/2005-Cus.VI MOF,DOR dated 26.09.2005)
