Custom tariff & calculations!

[svenkateshsmart]

Hi,

I have often seen a number of members inquiring about customs tariff and calculations. So, I thought of creating a thread to give a rough idea on the tariffs on the items that we typically import.

I have posted some links and attached some pdf documents containing rates for amplifiers, televisions, projectors, speakers, etc.

The below links are eletrical equipment and sound recorders and reproducers, such as amplifiers, speakers, microphones, etc.
1. http://www.cbec.gov.in/excise/cx-tariff0910/chap84.pdf
2. http://www.cbec.gov.in/excise/cx-tariff0910/chap85.pdf

Hope this helps!

 

[sidvee]

Thanks svenkateshsmart - useful post
accordingly - this is the duty on the below mentioned equipment.

8518 21 00 -- Single loudspeakers, mounted in their enclosures u 16%
8518 22 00 -- Multiple loudspeakers, mounted in the same u 16%
8519 89 10 --- Audio Compact disc player u 16%

I was under the impression that duty on speakers was 30%. Can any members who actually imported speakers enlighten kindly?

Cheers
Sid

 

[svenkateshsmart]

hi,

There are some other taxes apart from that 16% and they are as follows and they vary according to the items:
1. Basic Customs Duty
2. Surcharge
3. Additional Duty
4. Special Additional Duty

Below is a simple exemplary calculation:

Assuming the product X has the following value and chargeable to following duties:-

(i)Value of goods under section 14 of Customs Act, 1962 = Rs.100/-
(ii)Basic Customs Duty = 35%
(iii)Surcharge = 10%
(iv)Additional Duty = 16%
(v)Special Additional Duty = 4%

The calculation of duty leviable on the goods produced or manufactured by EOUs/EPZ/STP/EHTP units and cleared into DTA as per specified paragraphs of the Exim Policy would be as follows:-

Method of calculation of duty:

On assessable value of Rs.100/-, the goods would be leviable to,-

Basic Customs Duty @ 35% = Rs.35.0/-
Surcharge @ 10% = Rs.3.5/-
Total Basic duty + Surcharge = Rs.35.0 + Rs.3.5/- = Rs.38.5/-
Value for the purpose of calculation of Additional Duty under section 3 of CTA, 1975 = Rs.100/- + Rs.38.5/-
= Rs.138.5/-
Additional Duty of Customs

= 16% of Rs.138.5/-
= Rs.22.160/-

Value for the purpose of calculation of Special Additional Duty under Section 3A of CTA, 1975 = Rs.100/- + Rs.38.5/- + Rs.22.160/-
= Rs.160.660/-

Special Additional Duty = 4% of 160.660/-
= Rs.6.426/-

Total duty payable = Rs.35.0 + 3.5 + 22.160 + 6.426/- = Rs.67.086/-

Duty required to be paid = 50% of 67.086

= Rs.33.543/-

Hope this helps!

The above calculation was an exemplary one and just for your guidance and not to be taken as a standard. Please refer the appropriate chapters for exact tarriffs and also there are some general exemptions, which you can find if you follow the above links. Also, the tarriffs and rules are periodically revised and amended by the CE, so this is just to give you a bit of insight and you can calculate plus or minus 3-5% from the exact tarriff.

Cheers!

 

[sidvee]

Wow - what a convoluted and confusing method:lol: Have to hand it over to the government to come up with a calculation like this.
Anyways thanks for the informative post svenkateshsmart.
Cheers
Sid

 

[skumar]

I imported a couple of Axiom speakers (Fedex was the courier) and the overall charges (paid to Fedex) were close to 25%. I will give the breakup when I find the Fedex invoice.

 

[suri]

hi,

i have importing loudspeakers and components thru madisound for some time now via fedex and the customs duty has always worked out to within 13 percent of invoiced value.

 

[doors666]

hi,

i have importing loudspeakers and components thru madisound for some time now via fedex and the customs duty has always worked out to within 13 percent of invoiced value.

these are usually parts and will attract lesser duties. e.g. in cars, imported completely built units will have more taxes than imported knocked down kits that are assembled here.

 

[jayad08]

how much duty for projectors..
being 10% base rate, does it come out to be 22-25%

 

[svenkateshsmart]

how much duty for projectors..
being 10% base rate, does it come out to be 22-25%

Hi,

You would end up paying 25%-27% for projectors, 16% is the base rate + surcharge + and other additional charges.

Cheers!

 

[jayad08]

Hi,

You would end up paying 25%-27% for projectors, 16% is the base rate + surcharge + and other additional charges.

Cheers!

any ideas on whether the rates have been revised recently? I saw the same document with the base rate as 10%.
Here is the thread reference..
http://www.hifivision.com/home-thea...ery-regarding-customs-duty-ht-projectors.html
I think that this has been revised just recently as the link posted in this not available now..

 

[gobble]

I did not see any mention of CVD here in the calculations. I am certain it applies as well .. or no?

Regards

 

[sidvee]

Another thing that I find unacceptable from our govt. is the fact that they charge customs on the shipping charges as well Isn't it an asinine practice. I mean shipping is not a physical object nor does it compete with local industry which, I assume, they are trying to protect.
Cheers
Sid

 

[odyssey]

You are right, they take it as landed cost (including freight). If Freight is not mentioned, sometimes they add a percentage of the cost of the goods as freight charges

The biggest problem I have with duties, now having received so many packages through so many courier/post is that its completely unpredictable. I have had as low as 20% and as high as 40%. You already know from your experience that you cant reason with them

cheers

 

[deba]

Thanks for the post..........really confusing and complicated.......thats our Govt.:sad:

 

[ravin]

Very informative...

 

[srinisundar]

Hi Jaya, it is available still, the base rate changed from 10 to 16%..

 

[svenkateshsmart]

Hi Friends,

I am ready to update this thread periodically with the updated tariffs, if you all are really interested in this. As I feel some of us do not like importing stuffs and would prefer buying it from a local dealer, but there is no option if you want to buy something that is not available here, if there is a sufficient amount of support I would continue update this thread.

So, awaiting your inputs.

Cheers!

 

[murali]

Interesting information. Earlier, while in India, I had directly imported speakers and ended up paying the same cost of speakers as duties, fines etc!

Now that I am abroad, I recently bought a Pioneer Kuro 500A plasma TV (50") for around Rs 1.5 lakhs. I wonder which will be cheaper --- sending it back to my home in India through freight agency or carrying it myself during the next visit. In both cases, I will have to pay duty but if I carry it, may be I get that minus Rs 25,000.
Or, I wait till availing Transfer of Residence.
Any suggestions???
Do TVs also incur similar customs duties???

Thanks in advance.
murali

 

[svenkateshsmart]

Hi,

There are some considerations, exemptions, and discount in tariff if you stay in abroad for a particular period of time and especially when you want to take some particular items along with you.

If you check out the pdf. attached or the links given, you will get more idea. But I would recommend to carry it along with you, so that there are a lot of chances that you would end up paying lesser than actual rates. I cannot disclose certain facts here, hope you understand!

Cheers!

 

[sidvee]

Hi Friends,

I am ready to update this thread periodically with the updated tariffs, if you all are really interested in this. As I feel some of us do not like importing stuffs and would prefer buying it from a local dealer, but there is no option if you want to buy something that is not available here, if there is a sufficient amount of support I would continue update this thread.

So, awaiting your inputs.

Cheers!

Please do so - I think it will be a source of great info.
Cheers
Sid