Vivek Batra
Well-Known Member
Hi FMs
This all started when I thought about importing something (read amplifier) from abroad to India, but had no idea how the import process and above all custom duty and clearance would work. This confusion and no concrete information available even on government sites made it more difficult for me to even think in this direction.
But reality is much easier than you would think. Yesterday from my trip back to India, I stopped at customs office in New Delhi airport and asked all I had to. They were nice to answer each and every thing and cleared the air around custom clearance and import duty. I would like to share it with all of you, since I see many posts related to this subject.
How this works.
If you are carrying it as a checked in luggage
1. Check in your product as an additional language or whatever. You may have to pay extra to the airline if its beyond the baggage allowance in your ticket.
2. If you want to pay the duty, go to red channel and pay 38.05% including all surcharges on the invoice value. You will get 50k free baggage allowance. Custom duty would be charged on invoice value minus 50k, if you do not have any other dutiable goods with you.
3. Pay the duty and walk away.
If you are getting the product shipped from abroad
Many confusions were in this way of importing. Like having a Import Export Code, GSTIN registration, registration with Customs etc any many more. But reality is bit different.
1. The dealer will most likely ship the product using either UPS/FedEx/TNT or any other similar company. They all do the custom clearance on your behalf.
2. No Import Export Code is required for an end user. Its only meant for people who are importing it for commercial purpose and importing in bulk.
3. No GSTIN number is required.
4. No Customs registration is required.
5. Custom officer may call you if he/she feels that either invoice is under valued or the product is not permitted in India or something like that. Otherwise nothing stops the clearance.
6. The courier company would contact you to pay the exact custom duty to be paid to the courier company not to customs. They will pay the duty to customs on your behalf. You will get all the receipts, e.g custom duty, any other charges etc.
7. In this case No free baggage allowance is applicable. Custom duty is calculated on full invoice value.
8. Since the custom officer I talked to was deputed at the airport, he said the custom duty is bit less than at the courier terminal but he was not sure about the exact rate. But not huge difference may be just in fractions or close to 36%. Take the max 38.05%
Apart from this, I do not see any issues in importing but it has downsides like no warranty and may be no local support.
Hope this helps to all who are interested in buying stuff outside India may cables or something that involve less risk than costly equipment.
Regards
Vivek
This all started when I thought about importing something (read amplifier) from abroad to India, but had no idea how the import process and above all custom duty and clearance would work. This confusion and no concrete information available even on government sites made it more difficult for me to even think in this direction.
But reality is much easier than you would think. Yesterday from my trip back to India, I stopped at customs office in New Delhi airport and asked all I had to. They were nice to answer each and every thing and cleared the air around custom clearance and import duty. I would like to share it with all of you, since I see many posts related to this subject.
How this works.
If you are carrying it as a checked in luggage
1. Check in your product as an additional language or whatever. You may have to pay extra to the airline if its beyond the baggage allowance in your ticket.
2. If you want to pay the duty, go to red channel and pay 38.05% including all surcharges on the invoice value. You will get 50k free baggage allowance. Custom duty would be charged on invoice value minus 50k, if you do not have any other dutiable goods with you.
3. Pay the duty and walk away.
If you are getting the product shipped from abroad
Many confusions were in this way of importing. Like having a Import Export Code, GSTIN registration, registration with Customs etc any many more. But reality is bit different.
1. The dealer will most likely ship the product using either UPS/FedEx/TNT or any other similar company. They all do the custom clearance on your behalf.
2. No Import Export Code is required for an end user. Its only meant for people who are importing it for commercial purpose and importing in bulk.
3. No GSTIN number is required.
4. No Customs registration is required.
5. Custom officer may call you if he/she feels that either invoice is under valued or the product is not permitted in India or something like that. Otherwise nothing stops the clearance.
6. The courier company would contact you to pay the exact custom duty to be paid to the courier company not to customs. They will pay the duty to customs on your behalf. You will get all the receipts, e.g custom duty, any other charges etc.
7. In this case No free baggage allowance is applicable. Custom duty is calculated on full invoice value.
8. Since the custom officer I talked to was deputed at the airport, he said the custom duty is bit less than at the courier terminal but he was not sure about the exact rate. But not huge difference may be just in fractions or close to 36%. Take the max 38.05%
Apart from this, I do not see any issues in importing but it has downsides like no warranty and may be no local support.
Hope this helps to all who are interested in buying stuff outside India may cables or something that involve less risk than costly equipment.
Regards
Vivek