All about Importing Stuff and Custom Duty

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Vivek Batra

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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
 
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


Hi Vivek,

Glad you had a good experience with customs. Years ago when I got my equipment, I wasn't so lucky & ended up walking out last from the flight. They basically look out for Bakras with electronics & package size. When I questioned the duty amount which was ridiculous, I was told that as per rules everything is dutiable right from textiles, pens, chocolates etc.
The point is when you are dealing with them directly there are other options of settling the duty amount.

Regarding importing via courier, I was told to give a copy of the original KYC document to DHL who were delivering it. They will handle all the import & delivery formalities. Without the document , I won't get the goods & a surcharge would be charged after few days if they don't get the document on time. On their own DHL didn't give me the duty receipt which was in my name. I had to ask for it.

Regards,

Nitin
 
Last edited:
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

So what did you get finally ?
 
Hi Vivek,

Glad you had a good experience with customs. Years ago when I got my equipment, I wasn't so lucky & ended up walking out last from the flight. They basically look out for Bakras with electronics & package size. When I questioned the duty amount which was ridiculous, I was told that as per rules everything is dutiable right from textiles, pens, chocolates etc.
The point is when you are dealing with them directly there are other options of settling the duty amount.

Regarding importing via courier, I was told to give a copy of the original KYC document to DHL which was delivering. They will handle all the import & delivery formalities. Without the document , I won't get the goods & a surcharge would be charged after few days if they don't get the document on time. On their own DHL didn't give me the duty receipt which was in my name. I had to ask for it.

Regards,

Nitin
Yes you are right KYC would be sought. Will add this to the list.
 
So what did you get finally ?
Well I couldn't buy what I was looking for (Luxman :) ). I was in Helsinki and went to a couple of shops and no one had ready stock. Same in Belgium the guy needed at least 1 week to arrange and I was short of time. But he ships free of cost to India for orders above 3k euros.
 
There is one more option when getting in goods via a courier company. You can get them to handle only the freight till the destination and the clearing can be done via a Clearing Agent of your choice. Their responsibility ends once handed over to your clearing agent.
You will need to tell the courier company in advance about the port of clearing and you have a choice of telling them that you want this cleared at courier customs or Air Cargo customs (at least in Mumbai they are different) - accordingly they will prepare release documentation for your clearing agent. But I think this is only applicable or you will only be "entertained" by the courier company if the shipment is booked by you.
 
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.

IMO not mentioning the code is a bad idea. It means the customs officials charge based on the product name. So for example computer parts (HS 8471) usually have an 18% import rate while televisions (HS 8528) are charged upto 56%.

You can search for import rates on this website - https://www.icegate.gov.in/Webappl/ The website's description search isn't working so enter your description here and search for the corresponding code on the icegate website. On top of that some courier companies charge a customs handling fee.
 
IMO not mentioning the code is a bad idea. It means the customs officials charge based on the product name. So for example computer parts (HS 8471) usually have an 18% import rate while televisions (HS 8528) are charged upto 56%.

You can search for import rates on this website - https://www.icegate.gov.in/Webappl/ The website's description search isn't working so enter your description here and search for the corresponding code on the icegate website. On top of that some courier companies charge a customs handling fee.
I guess you are confused with Import export code and product codes.
 
I had purchased Quad Speakers from UK ...paid online to the buyer .

Fedex did everything for me . Once it arrived they sent me a mail with a form ...this form contained their code ...., I had to email back the form with my signature and scanned copy of my Aadhar . They did the clearance ..paid the duty ....and when they delivered the speakers took the money from me ..

Only thing here is that u have to keep checking mails daily ....if your goods lie with the customs because of delay from ur end in submitting KYC ...then there is some extra charge per day
 
I had purchased Quad Speakers from UK ...paid online to the buyer .

Fedex did everything for me . Once it arrived they sent me a mail with a form ...this form contained their code ...., I had to email back the form with my signature and scanned copy of my Aadhar . They did the clearance ..paid the duty ....and when they delivered the speakers took the money from me ..

Only thing here is that u have to keep checking mails daily ....if your goods lie with the customs because of delay from ur end in submitting KYC ...then there is some extra charge per day
Were these new speakers or pre owned ?
 
I had purchased Quad Speakers from UK ...paid online to the buyer .

Fedex did everything for me . Once it arrived they sent me a mail with a form ...this form contained their code ...., I had to email back the form with my signature and scanned copy of my Aadhar . They did the clearance ..paid the duty ....and when they delivered the speakers took the money from me ..

Only thing here is that u have to keep checking mails daily ....if your goods lie with the customs because of delay from ur end in submitting KYC ...then there is some extra charge per day

Did FedEx give you the customs duty receipt ?
 
And all couriers also charge approx. 500 extra as processing/handling for doing the custom handling on our behalf.
 
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