Confusion regarding customs duty on mobile phone

There is only one duty on mobile phone, which is duty of excise, called NCCD, which is equivalent to 1%. There
is also education cess @ 3 % on this 1%. Therefore, total duty on mobile phone is 1.03%.  Further , mobile phone is charged  excise duty @ 1.03%  on its MRP price
 ( After abatement),if domestically produced. But, if  mobile phone is imported than duty is calculated based on  value ( Assessable value +customs duty) and  abetted  MRP value ( After abatement), which ever gives less duty.
Regards
Ravindra Kumar
www.globaltaxguru.in

Customs duty on set top box for TV and internet

Customs duty on set top box for internet attract customs duty @ 15.03%. Where as set top box for TV attract customs duty @ 20.94%. If it is received as bonafide gift through courier then it it can be received without paying any duty if it valued up to Rs 10,000/-. However,if imported as bonafide gift through Post then Upto Rs 2000/-(C.I.F) is allowed without any duty .

Customs duty on set top box, If you are bringing through baggage ,then your duty liability will change as per your age,stay or bringing as un accompanied baggage,etc. It is freely importable but require licence for importing through Postal after Rs 2000/-(C.I.F). You may visit my sites :www.baggage.globaltaxguru.in ( for baggage); www.postal.globaltaxguru.in (for Postal);

www.courier.globaltaxguru.in ( for courier) and www.ebay.globaltaxguru.in ( if you are an ebay user).

If you want to compare rate of duty for different mode of import such as courier,postal,baggage, air cargo and sea cargo ,then , you can visit www.globaltaxguru.in.

Warm regards

Ravindra Kumar

Customs duty on plasama TV

Customs duty on plasama Tv after budget is 26.85%. If you are bringing plasama tv through baggage ,then your duty liability will change as per your age,stay or bringing as un accompanied baggage,etc. It is freely importable but require licence for importing through Postal. You may visit my sites :http://www.baggage.globaltaxguru.in ( for baggage); http://www.postal.globaltaxguru.in (for Postal);

http://www.courier.globaltaxguru.in ( for courier) and http://www.ebay.globaltaxguru.in ( if you are an ebay user).

If you want to compare rate of duty for different mode of import such as courier,postal,baggage, air cargo and sea cargo ,then , you can visit http://www.globaltaxguru.in.

Warm regards

Ravindra Kumar

import of polished or rough stone or diamond

You can import rough and polished stone through air cargo, get import export code from DGFT ,Meet any nationalized bank for foreign remittance. Hire registered Customs House Agent for assisting in customs clearance.It is simple and lot of people are already doing. One can also explore through postal medium.

Regards

Ravindra Kumar

iPAD will attract Customs duty @ 14.71 %

If any body wish to import into India, ipad will attract customs duty @ 15.03%. Bonafide gift of ipad Value upto Rs 10,000/- is without any duty if imported through Courier. However , value of ipad if exceed Rs 2000/-(C.I.F) through postal then ,it is restricted, attracts fine and penalty,in additions to duty.One can visit my site www.ebay.globaltaxguru.in ,if you are buying from ebay, or www. postal.globaltaxguru.in if importing through Postal or www.courier.globaltaxguru.in ,if importing through courier.

There are different rate of duty if imported for different purpose such as personal use, commercial use, repair ,return and replacement for many goods.

Explore www.ebay.globaltaxguru.in for purchasing goods from ebay

i have already integrated my site www.ebay.globaltaxgurur.in to ebay and amazon.It is working fine with ebay.you can enter any product ,it will fetch value and shipping cost from ebay then it will ask you other detail to show rate of duty, total duty amount, landing cost,what is duty saving if imported through Post,Courier,Baggage,sea cargo and air cargo.Further duty variability as per purpose such as gift,personal use, commercial use, repair, return.Our Indian tax system is complex and require lot of effort to make it easy to understand for common man.
pl explore my site which is still under development and send me your feedback.
Regards
Ravindra Kumar

Duty on toys @ 14.712 %. but require import compliance for safety issue

Duty on toys @ 14.712 %. import of toys are to satisfy various safety requirement as per ISO 8124 ,IS 9873 of BIS.It is advisable that you either visit or contact DGFT office or website for more information. Inport of toys are restricted from some country.

If some body is interested to know duty,import conditions for importing toys from ebay,may visit www.ebay.globaltaxguru.in or www.globaltaxguru.in.

i will appreciate feedback ,if any body use it.
Regards,
Ravindra Kumar

Customs duty on digital camera is now 26.85%

Digital camera attracts duty @ 26.85% and same duty is for Video camera recorder. Gift of Digital camera utpo Rs 10,000/- still without duty if imported through Courier. But same value of camera will attract fine and penalty ,in addition to duty, if imported through Post.

Ravindra Kumar

Customs duty on LCD TV is now 26.85%

After current budget ,LCD TV attract duty @ 26.85 %. This duty is same if you are importing through air cargo,sea cargo and Courier. Further LCD TV is MRP item. To calculate CVD, whether it is based on basic customs duty or value arrived after giving abatement of 30% on MRP.

one can explore my website www.globalatxguru.in ,or, www.ebay.globaltaxguru.in for more information.

Regards

Ravindra Kumar

Personal import and export: Customs duty on mobile phone,smart phone,iphone is 1%

Personal import and export: Customs duty on mobile phone,smart phone,iphone is 1%

Customs duty on mobile phone,smart phone,iphone is 1%

Customs duty is reduced on mobile phone after this budget. Now customs duty is only 1% and it is base on MRP price. To calculate duty, abatement of 35 % is given on MRP price. Now spl CVD is removed on mobile phone, smart phone , iphone.

Ravindra Kumar

Customs duty on e reader,kindle

e book reader may be classified under Custom-tarif heading 8543 70 99. Merit Rate of duty                 26.85% Licence Condition                  No Licence Required Regards Ravindra Kumar Global Tax Guru www.globaltaxguru.in

customs duty on ipad

ipad,a tablet computer by apple.

It will fall under CTH 84713090,Merit Rate of duty 12.57%

Licence Condition - No Licence Required.

Regards

Ravindra Kumar

Mobile phone and smart phone are to be assessed on MRP price for excise duty,in additions to duty based on Basic Customs duty

Mobile phone/smart phone are charged excise duty which is higher of either based on Basic customs duty and assessable value or MRP for domestic market. On the same way levy of National Calamity Contingent Duty (NCCD) on Cellular / mobile Phones on the basis of MRP / Retail Sale Price.

Circular No.12/20F.No.528/10/2009-Cus.(TU)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

12^th March, 2009.

Subject: Clarification on levy of National Calamity Contingent Duty (NCCD) on Cellular / mobile Phones on the basis of MRP / Retail Sale Price – regarding.

***

It has been brought to the notice of the Board that some of the Customs field formations are not charging the levy of National Calamity Contingent Duty (NCCD) on the basis of Maximum Retail Price (MRP) / Retail Sale Price (RSP) of the Cellular / Mobile phones.

2. In this regard, your attention is also invited to the entry at Serial No.87 of the Notification No.14/2008-CE(NT) dated 1.3.2008 and Notification No.49/2008-CE(NT) dated 24.12.2008 issued in supersession of the former notification. In the aforesaid entry, ‘Telephone sets including telephones with cordless handsets; videophones’ have been specified for the purpose of charging excise duty on MRP basis. Doubts have been raised by the trade and field formations on whether ’telephone sets for cellular network or other wireless network‘ are covered by the description of goods specified under the aforesaid Serial No.87 of the said notification.

3. The matter has been examined in the Board. In terms of section 3 of the Customs Tariff Act, 1975 read with section 136 of the Finance Act, 2001, imported goods are charged to NCCD in the same manner as the relevant provisions for levy and collection of the duty of Excise on such goods apply in terms of the Central Excise Act, 1944. Accordingly, in terms of proviso to sub section (2) of section 3 of the Customs Tariff Act, 1975, imported goods shall be charged to additional duty of Customs on the basis of MRP / RSP, if in case of imported article, the MRP / RSP is required to be declared under the Standards of Weights and Measures Act, 1976 or the rules made thereunder, and such product is listed under the Notification prescribing levy of Excise duty on MRP basis i.e. Notification No.49/2008-CE(NT) dated 24.12.2008.

4. From the point of classification, it is clarified that subsequent to changes made in the Harmonized System of Nomenclature (HSN) in 2007, the First Schedule to the Customs Tariff Act, 1975 was also revised so as to include both ‘line telephones’ and ‘telephones for cellular networks or for other wireless networks’ under heading 8517 as ‘Telephone sets, including telephones for cellular networks or for other wireless networks’. Further, no changes have been made so as to remove cellular / mobile phones from the scope of MRP based assessment. The entry ‘cellular or mobile phones’ found in earlier notifications under heading 8525 was deleted as there was no need to have separate entry for cellular / mobile phones as the present entry ‘telephone sets’ under heading 8517 covers both ‘line telephones’ as well as ‘cellular / mobile phones’.

5. In view of the above, it is clarified that telephone sets for cellular networks or for other wireless networks are covered under the description ‘Telephone sets’ under Sl.No.87 of Notification No.49/2008-CE(NT) dated 24.12.2008 and therefore they would continue to be assessed for additional duties of customs on the basis of MRP / RSP. Consequently, NCCD, being a duty of excise, is also required to be collected on the basis of MRP / RSP, in the same manner as applicable to the levy of additional duty under section 3 (2) of the Customs Tariff Act,1975.

6. All pending assessments, if any, may be finalized accordingly.

7. The field formations as well as trade and industry may be suitably informed accordingly.

Yours faithfully,

(M.M. Parthiban)

Director (Customs)

import duty for ebay user at website www.globaltaxguru.in

Website www.globaltaxguru.in is extension of this blog. It is integrated with ebay and amazon. Site collect information of product price and show import duty. It also suggest ,what if goods imported through Post, Baggage or Courier, will have licence conditions and duty implications. Ravindra Kumar

Imported Goods valued more than Rs 2000 (C.I.F) through Post do not require import licence.

Any goods imported through Post or for personal use do not require IEC(Import Export Code).

Only consumer electronic goods above Rs 2000(C.I.F) are not exempted from requirement of Licence.Therefore, if any consumer electronics goods

above Rs 2000(C.I.F) is freely importable under ITC(HS ) policy, then, such goods even if imported through Post will not attract any fine and penalty. It is only in case ,any consumer electronic goods ,valued more than Rs 2000 (C.I.F), also require licence,then, it is not permitted to be imported through Post.But in present policy most of consumer electronics are allowed to be imported without any import licence.

As per section 3(1)(I) ofFOREIGN TRADE (EXEMPTION FROM APPLICATION OF RULES IN CERTAIN CASES) ORDER, 1993 .The relevant extract is reproduced"(i) by any person through the post or otherwise for his personal use, or by any institution or hospital for its use except —

(a) vegetable seeds exceeding one Ib. in weight;
(b) beer;
(c) tea;
(d) books, magazines, journals and literature which are not allowed to be imported under the Policy for the time being in
force;
(e) goods, the import of which is canalised under the Policy;
(f) alcoholic beverages;
(g) fire arms and ammunition;
(h) consumer electronic items (except hearing aids and life-saving equipments, apparatus and appliances and parts thereof):
Provided that the c.i.f. value of goods imported as aforesaid at any one time shall not exceed rupees two thousand.''

It has come to knowledge that Delhi Customs House is not allowing goods imported through Post valued more than Rs 2000/- (C..I.F).This is not legally valid practice . The plain reading of above order ,it is clear that only consumer electronics goods as referred under (h) are not exempted from application of Licence rule ,if they are valued more than Rs 2000(C.I.F). The proviso is only for clause (h) .Before proviso,it is colon(:) and sentence finish after proviso. All the clauses (a) to (h) are exceptions and ending with semi colon(;) . The clause (h) has proviso.

But other goods mentioned falling from (a) to (g)(e.g. Beer,Fire arms and ammunition, etc) ,whether valued more than Rs 2000/ or more not allowed to be imported through Post or for personal use as per Foreign Trade Order 1993.However, if any goods is allowed to be imported freely (Without licence) as per ITC(HS) Policy , ,even though ,it is not allowed as per Foreign Order 1993, .

For example Beer, and alcoholic beverages are allowed freely importable (Without Licence ) as per ITC(HS) then they are allowed to be imported through Post.

Similarly NO IEC is required for Post, Baggage , and Personal use goods.

Import duty on LCD TV. Varies for different mode of import

It is observed that same LCD TV will attract different duty based on whether you are importing as personal goods, post parcel,baggage, courier, and for commercial use. Pl see below for discussion and suggestion.

Customs classification

The LCDTV are classified under CTH 85287310 ( Size < size =" "> 25 cm ).

The LCDTV of any size are classified under CTH 98049000 ( If imported through post for personal use, CIF value is less than Rs 2000/-).

Total duty

i) Rate of duty @ 24.42136%. (If imported through sea cargo, Air cargo, Courier ,

commercial use) .

Note -Also excise duty is charged based on MRP price of goods in Indian market.An abatement of 20% on MRP price is taken for calculating Excise duty. The excise rate of duty is 8 % on LCD TV.

The excise duty is calculated based on two criteria:Value arrived after adding customs duty amount in the assessable value, OR, Value arrived after deducting 20 % price from declared M.R.P. Maximum of two value will be taken for calculating excise duty amount.

The above mentioned rate @ 24.42136% is based on assumption that value arrived after adding Customs duty amount is more than MRP price based. Reverse of this may hold true,if MRP based price is more than Import assessable value.

ii)Rate of duty @ 35 %. (If imported as Unaccompanied baggage ,or, if single unit of personal baggage whose value is excess than free allowance of Rs 25,000/-).

iii)Rate of duty @ 15 % (If imported by any person who returns to India after staying at least 365 days during two years immediately precedings the date of arrival in India,OR, any person on a bonafide transfer of residence to India as bonafide transfer of baggage).

iv) a)-Rate of duty @ 14.712% ( If imported through post for personal use, CIF value is less than Rs 2000/-).

b)-Rate of Duty @ 24. 42136% ( If imported through post for personal use, CIF value is more than Rs 2000/-).

Warm regards

Ravindra Kumar

Importing DVD/CD Movie into India through Post, Courier

The movie DVD of foreign origin may be protected by copyright . May not be permitted for viewing in India. Pl check whether it is legal to import such DVD in India. If it is mentioned on the DVD it self that it cannot be viewed outside USA,then customs will seize such goods.Further pornographic contents or material, which is otherwsie not permitted for screening in India by Indian Govt,will not be allowed to be imported. The duty on Movie dvd may be 14.7120% for personal use. Regards Ravindra Kumar

customs duty on personal goods imported through post and courier after new budget

The total customs duty on goods imorted for personal use is 14.712%. However ,consumer electronics goods valued more than Rs 2000/-(CIF) are not allowed to be imported without fine and penalty through post. Bonafide Gifts valued upto Rs 10,000/-(other than Consumer electronics goods of Rs 2000/-(C.I.F)) can be imported without any duty.
Ravindra Kumar

what is bonafide gift

Bonafide gift are send by somebody who in normal course of life give gift to each other .No payment is made by you directly or indirectly. There is no legal definition of bonafide gift is given under Customs law .But it is decided based on available evidence whether it is malafide or bonafide gift.As per my understanding the goods should not be declare gift just to avoid duty,even though one has bought himself.

Digital camera as a gift
The digital camera are not IT products as per WTO. The computers fall under CH 84 and digital camera under CH 85 of the Customs Tariff. The personal import benefit is available through Post only. If digital camera is bonafide gift and valued lower than Rs 10,000/- and imported through Courier then there is no import duty