customs duty - loudspeakers and parts

[suri]

throughout the union territory of india - customs duty leviable on loudspeakers (either parts or built-up) is 10% - and is charged at the point on entry.

read section 8518-21-00 - in the following pdf file

http://www.cbec.gov.in/customs/cst-0910/chap-85.pdf

customs duty levied by the indian government for protection of the industry of swadeshis like SOUNDSGREAT (a member of our forum and manufacturer of bespoke fine loudspeakers) is -

NOT 35%

NOT 28%

NOT 20%

NOT 15%

NOT 12.5%

IT IS TEN PERCENT (10%) - I REPEAT - TEN PERCENT.

 

[suri]

Plus surcharges. The minimum effective rate is 18.5%.

yes cranky - about that much - wanted to start an awareness conversation with forum members pitching in and asking questions/giving answers.

Taxation System in India - tax structure - India tax reforms laws - Direct Taxes - Corporate Income - Capital Gains - Personal Income - Tax Incentives - Double Taxation Avoidance Treaty - Indirect Taxes - Excise Customs Duty - Service Tax - Securitie

 

[magma]

sangram
do you know if these surcharges are fixed at 18.5 or are on discretion

i was talking to a friend ( ex smuggler now self proclaimed official importer) though he told me " sabko mat batane warna pet pe lath lagegi"
he implied these surcharges are not fixed and are at a discretion
many/most dealers have an almost unofficial official setting where these surchages dont amount to as much as 18.5%
this is how some brands come to us at close to international pricing i suppose

 

[vktyagi]

throughout the union territory of india - customs duty leviable on loudspeakers (either parts or built-up) is 10% - and is charged at the point on entry.

read section 8518-21-00 - in the following pdf file

http://www.cbec.gov.in/customs/cst-0910/chap-85.pdf

customs duty levied by the indian government for protection of the industry of swadeshis like SOUNDSGREAT (a member of our forum and manufacturer of bespoke fine loudspeakers) is -

NOT 35%

NOT 28%

NOT 20%

NOT 15%

NOT 12.5%

IT IS TEN PERCENT (10%) - I REPEAT - TEN PERCENT.

Dear Suri
We need to understand how the duty is computed.
Besides Basic Customs Duty (BCD), Countervailing Duty (CVD) equivalent to Excise duty, Additional duty (currently 4%) and Education Cess 2+1% at two stages render the total duty to be 26.85% if CVD and BCD are 10% each.
It is true that BCD is 10% on most of the items, but actual outflow is much higher because of above reasons.

 

[srinisundar]

Exact duty will work out to 24.05% inclusive of all duties if it is 10% as BCD.. Freight will be added as 20% from the value of product for calculating duty.

Value of Invoice + Frieght cost(20% of product cost) will be taken for BCD

TAXES : BCD( 10%) + CVD( 8% ) + CESS(5%) + EDU.CESS(3%) SAD(4%) = TOTAL DUTY RATE ROUGLY WORKED OUT AT FINAL RATE OF 24.05%.

FEDEX/DHL HANDLING CHARGES = 300 + ( Service tax=31) = 331

Hope I am right / Legal section from HFV will correct if I am wrong..(Venkateshsmart/ Buswal)

 

[vktyagi]

sangram
do you know if these surcharges are fixed at 18.5 or are on discretion

i was talking to a friend ( ex smuggler now self proclaimed official importer) though he told me " sabko mat batane warna pet pe lath lagegi"
he implied these surcharges are not fixed and are at a discretion
many/most dealers have an almost unofficial official setting where these surchages dont amount to as much as 18.5%
this is how some brands come to us at close to international pricing i suppose

Duties and surcharges are not discretionary. The reason that some international brands are available at par with international price is these companies have their assembly units in India. Duty concession upto 100% of BCD is available to actual users i.e. manufacturers on hundreds of items. Moreover CVD and additional duty is available to them as cenvat credit which is utilized while paying Excise duty on their finished good. In this burden of duty is minimized to less than 1%.
Another scrupulous way to save duty is to under declare the assessable value of the goods in connivance with or without knowledge of customs authorities.

 

[odyssey]

Hi
For some reason (I cant explain why nor could I get an agent to do this) - the duty is different if the product comes by Cargo mode rather than by Courier mode. As has been posted above, freight is taken as 20% of the total consignment value. On top of that there are also charges that Indian customs charges for storage (for their warehouse space) - demurrage charges - all put together total is around 40% give or take.
I am looking at an actual product that I received by courier, the charges are

12595 - product value

10% is 1259.52
CVD is 8% at 1108
cess is 2% 22.17
cess is 1% at 11.31
ssch is 3% at 72
Asd is 4% 602.74

cess is charged on CVD amount whereas ASD is charged on the total product value

cheers

 

[soundsgreat]

Hi,

customs duty levied by the indian government for protection of the industry of swadeshis like SOUNDSGREAT (a member of our forum and manufacturer of bespoke fine loudspeakers) is -

Ohh gee, Suri so kind of you !! But I cannot say the same to our Govt ! They don't intend to save anyone but themselves !!!

Its because of these irregular practices (of the guy charging levies based on his wife's monthly demands:lol: ) that I decided not to import any damn thing and build everything myself !!

Suri I still Am waiting for a reply to that PM, Please do reply !!

Regards.

 

[svenkateshsmart]

Exact duty will work out to 24.05% inclusive of all duties if it is 10% as BCD.. Freight will be added as 20% from the value of product for calculating duty.

Value of Invoice + Frieght cost(20% of product cost) will be taken for BCD

TAXES : BCD( 10%) + CVD( 8% ) + CESS(5%) + EDU.CESS(3%) SAD(4%) = TOTAL DUTY RATE ROUGLY WORKED OUT AT FINAL RATE OF 24.05%.

FEDEX/DHL HANDLING CHARGES = 300 + ( Service tax=31) = 331

Hope I am right / Legal section from HFV will correct if I am wrong..(Venkateshsmart/ Buswal)

Yes, he is right. In fact, Srini sir has been importing frequently and has an hands-on experience! Also, this tends to vary between modes of transport and shipping companies. For e.g., if a product is sent through EMS, it attracts roughty about 14-16% of tax.

Cheers!

 

[murali]

Hi
For some reason (I cant explain why nor could I get an agent to do this) - the duty is different if the product comes by Cargo mode rather than by Courier mode. As has been posted above, freight is taken as 20% of the total consignment value. On top of that there are also charges that Indian customs charges for storage (for their warehouse space) - demurrage charges - all put together total is around 40% give or take.
I am looking at an actual product that I received by courier, the charges are

12595 - product value

10% is 1259.52
CVD is 8% at 1108
cess is 2% 22.17
cess is 1% at 11.31
ssch is 3% at 72
Asd is 4% 602.74

cess is charged on CVD amount whereas ASD is charged on the total product value

cheers

Thanks, this is a very valuable thread for decision-making.
Can someone please specifically state what will be the overall "Customs related expenses including all sorts of duties and taxes described in these threads" as %age of the value of the speakers, by cargo or courier? I am seriously considering to buy and send a new pair for my own use back home from abroad.

cheers.
murali

 

[svenkateshsmart]

Thanks, this is a very valuable thread for decision-making.
Can someone please specifically state what will be the overall "Customs related expenses including all sorts of duties and taxes described in these threads" as %age of the value of the speakers, by cargo or courier? I am seriously considering to buy and send a new pair for my own use back home from abroad.

cheers.
murali

Hi,

You can send it as a gift with a bonafide/declaration letter through government post. You could end up paying around 14-15%. If from US, then use UPS and locally your shipment will be delivered through EMS speedpost.

Cheers!

 

[cmsajith]

sangram
do you know if these surcharges are fixed at 18.5 or are on discretion

i was talking to a friend ( ex smuggler now self proclaimed official importer) though he told me " sabko mat batane warna pet pe lath lagegi"
he implied these surcharges are not fixed and are at a discretion
many/most dealers have an almost unofficial official setting where these surchages dont amount to as much as 18.5%
this is how some brands come to us at close to international pricing i suppose

I have heard from one of the dealer that nobody can survive in the market without importing through grey market. He even knows some of the official dealers who does this, with same warranty as the original one (normally nothing happens to a well built product and in case something happens that will be compensated by the extra for warranty for others)

 

[srinisundar]

quoting to Cmsajith post.... I know one famous brand dealer in chennai caught for evading taxes like this...