Hi guys here is the update.
I met the Additional Commissioner of customs to present our case. I took the following papers: -
1. List of Participants.
2. List of items that are being imported.
3. Kit wise summary of costing of the components.
4. Pictures of the speaker kits, subwoofer drivers and Plate amps.
After hearing the preamble and our requirement, he has suggested two ways of going about and also suggested the easier way out of the two: -
First way
There is no need to have an IE code. It is not feasible to assess so many individuals importing on a single pallet. Instead, the group can nominate a co-ordinator and he can import of behalf of the group without IE code as an individual (As a special case) However, papers need to be bulletproof. As per chapter 85, the details of levies would be as under which need to be paid for: invoiced cost, freight and insurance up to the port of entry (Chennai): -
1. Basic Customs ......... 10%
2. Countervailing duty... 10% (levied on all imports to protect domestic industry)
3. Cess on the above....4.42%
We can import ourselves if we are well versed with the procedures; if not, we have to appoint a clearing agent who are termed 'Customs House Agents' to file the 'Bill of Entry'
Second way (Not very practical due to the procedures involved)
Since I reasoned with him about the definition of CVD and also stated that these kits are of Indian origin, he said that the speakers can also be reimported by the same person/firm which has exported it. The reimporter needs to establish the facts by submitting the following papers which will be examined and exemption would be granted. The time limit of reimport of goods is 3 years from the date of export.
1. Original / copies of shipping bills.
2. Proof of payment of Central Excise duty.
However, till the process is over, the pallet would be lying in their warehouse which would attract demurrage which could be very heavy depending on the time taken. 'Destuffing' i.e. taking out just our pallet since it LCL cargo (Less than Container Load) can be taken but apparently it is not safe and the cargo can get stolen as there is no mechanism for safe custody.
Considering the above facts, it would be prudent to undertake the first option for importing our kits IMO. So the approximate costing would be like this:
1. Customs.......................................................... 24.62%
2. Clearing agent.................................................. 10%
3. Insurance........................................................ ? (Hope Danny absorbs this too
)
4. Repacking, local transport and incidental expenses... 2% (My assumption)
I propose to close the Group buy and give a window of 10 days for making payments to Danny directly.
@Participants, do voice your opinions on the thread.
It is 24.42 + typically 10% for the clearing agent. The incidental expenses would be more or less similar to that of Peerless deal.
