Customs duty/ penalty for used and old items.

[sreekanth]

Hi,
Needed to share some not so nice experience with customs.
I was looking online for an FM tuner, and my search led me to ebay.uk.

I found and old/ used Denon tuner for GBP 25, with shipping @ GBP 45 (total GBP 70). I was not able to get a good tuner on India sites, so i closed the deal.

About 40 days later i got a letter from Fedex that i had to pay adjudication fee for the same, and needed to provide authority letter, penalty letter, proof of purchase, explanation letter and some other documentation, which i managed to complete after much difficulty as i am petrified by this stuff.

1) Apparently i am not allowed to import used items!!
2) Anything which uses radiofrequency is a security risk item!!

I got the parcel after a lot more delay and i had to pay some 2k (~24% of Rs5600), about Rs 1400 for customs storage, and here comes Rs 15,000/- as penalty.

3) Penalty for importing used items and security risk item (FM tuner) is 15K!!

I asked if i could abandon the item as 18.5K for a used and paid for item was ridiculous, but Fedex guys said they paid the 15k on my behalf, and so have to take the item.

After some extensive discussion with Fedex customer care, including asking shipper to pay the 15K, they reluctantly accepted my request to abandon the item.

Still waiting, and hoping this is the last i hear about this transaction, and hoping it will be a good experience for others to learn from.

Thanks,

Sreekanth

 

[vivek.saikia]

1) Apparently i am not allowed to import used items!!

Does this rule also apply when you are coming back to India and are carrying your (used) stuffs with you?

I am currently in the US and will stay here for another couple of years and I am thinking of setting up my HiFi rig here and taking it back to India with me finally.

My whole plan is in jeopardy if above is true.

 

[tirthankar]

Stay away from Fedex and UPS, I have heard lots of horror stories.

I use ShopandShip (not saying its the best) but I have never faced any issue, even with used item

 

[ravi_d]

Sreekanth, sorry to hear that. Declaring the item as new if there is a possibility or excess baggage sometimes helps from escaping the fine.

Vivek, you can carry used/new stuff along worth up to 25k. I'm not sure how they calculate the value of used items.
One tip I can offer you. Don't stick to the 25k value. Buy as much stuff as you can fit into your allowed baggage. Go confidently via green channel and if the customs object you saying "bahut saaman hai, go to the red channel and declare all your stuff". Tell them you were moving back after couple of years and have no option other than to carry all your personal stuff back and you are ready to pay if they help you in clearing your baggage. Most of the time your work will be done for about $100 or less and its easy to bribe customs

 

[hemantwaghe]

Hi,
Needed to share some not so nice experience with customs.
I was looking online for an FM tuner, and my search led me to ebay.uk.

I found and old/ used Denon tuner for GBP 25, with shipping @ GBP 45 (total GBP 70). I was not able to get a good tuner on India sites, so i closed the deal.

About 40 days later i got a letter from Fedex that i had to pay adjudication fee for the same, and needed to provide authority letter, penalty letter, proof of purchase, explanation letter and some other documentation, which i managed to complete after much difficulty as i am petrified by this stuff.

1) Apparently i am not allowed to import used items!!
2) Anything which uses radiofrequency is a security risk item!!

I got the parcel after a lot more delay and i had to pay some 2k (~24% of Rs5600), about Rs 1400 for customs storage, and here comes Rs 15,000/- as penalty.

3) Penalty for importing used items and security risk item (FM tuner) is 15K!!

I asked if i could abandon the item as 18.5K for a used and paid for item was ridiculous, but Fedex guys said they paid the 15k on my behalf, and so have to take the item.

After some extensive discussion with Fedex customer care, including asking shipper to pay the 15K, they reluctantly accepted my request to abandon the item.

Still waiting, and hoping this is the last i hear about this transaction, and hoping it will be a good experience for others to learn from.

Thanks,

Sreekanth

GBP 75 for used tuner? Crazy!! in used market tuner retails for a lot less!

 

[sreekanth]

The issue on used items stands good for items coming i through postal services, not carry ons.

Specifically, tuners are not to be be imported in this manner i was told (? security reasons).

The customs duty was only 24% of item cost (~2k). The issue was penalty (15K) for importing a used tuner.

The documentation was fairly extensive and annoying, and i had to abandon the item in the end :sad:

I picked up a Beresford DAC about a month back from Beresford website, and i got it without any documentation. I had to pay 1.5k customs to the courier man. Thats was it!

I had no issues with items through geb either.

 

[sreekanth]

Sorry duplicate post.

 

[rbalagopalan]

Hello every body, please be aware Importing used electronics is banned in India on two counts,

One is that under this cover lot of scrap dealers started importing E waste and made lot of money (Importing E waste is banned in most of the the developed and developing nations including India in the world) and the so called developed nations have started using India as Dump Yard. In fact these scrap dealers will not have any purpose to those goods and they were simply dumping them at their will. So we have to go with our government to protect our environment. I think this has got larger interest than our petty problem / hobby of audio listening.

Count no 2. Used electronics - who is to the give the valuation? for the purpose of customs calculations. How are the authorities to arrive at the cost of the product? cause all these smugglers bring in high value stuff drastically under valuing them. In such case the customs authorities have to appoint a licensed valuer to asses the value of goods and charge duty on that. There has been lot of understanding started working out with the valuers then they found this way the valuation has started further going down.

So to have a big full stop to all this the gov. has put a ban on this. Any genuine user can bring any used electronics along with them

Does this rule also apply when you are coming back to India and are carrying your (used) stuffs with you?

I am currently in the US and will stay here for another couple of years and I am thinking of setting up my HiFi rig here and taking it back to India with me finally.

My whole plan is in jeopardy if above is true.

You don't have to worry. You can comfortably set up a HI FI rig as you can even bring a container load of used equipments when you return. Once you stay in abroad for more than 3 years you can bring things on TR (Transfer of residence) with out any duty. In fact why only HI FI, you buy all house hold items and bring them here. Even if you are not awailing TR you can bring any used item along with you while returning. Please consult a C&F agent befor comig back on TR with regard to accurate rules.

Stay away from Fedex and UPS, I have heard lots of horror stories.

I use ShopandShip (not saying its the best) but I have never faced any issue, even with used item

I have been using Borderlinx who have got tie up with DHL since long. In fact I am one amongst few to have imported high value, heavy weight and used electronics from USA. There has been no issues so for so good. The reason is that Borderlinx generates there own INVOICE and customs calculation sheet and collect the duty and pay them up front. The set back with BL is it is only for CITI card holders.

GBP 75 for used tuner? Crazy!! in used market tuner retails for a lot less!

In fact one day when I was walking around Richie street in chennai I found a Denon Digital AM FM tuner with out remote being sold for 1200 Rs. I wasn't aware of the value then. Even today anybody wants a tuner if you have a contact in richie street you can book one and of-course it is question of time to get.

Dear Corelement "" It's pure bullshit in our great nation."" I feel we have every privilege in our country than most of the countries in the world. The problem is all these cheap traders to make quick money they take over advantage of the privileges and spoil the governance. Which makes the gov. to restrict every thing, during this process we as a small timer and genuine users are getting affected.

In fact with regard to imports I have already writern in many thread with regard to its procedure and calculations.

 

[captrajesh]

Does this rule also apply when you are coming back to India and are carrying your (used) stuffs with you?

I am currently in the US and will stay here for another couple of years and I am thinking of setting up my HiFi rig here and taking it back to India with me finally.

Take a chill pill bud. You may go ahead and setup your hifi rig (even with pre used stuff if you please) and bring it back under 'Transfer of Residence"

 

[captrajesh]

Does this rule also apply when you are coming back to India and are carrying your (used) stuffs with you?

I am currently in the US and will stay here for another couple of years and I am thinking of setting up my HiFi rig here and taking it back to India with me finally.

Take a chill pill bud. You may go ahead and setup your hifi rig (even with pre used stuff if you please) and bring it back under 'Transfer of Residence"

Edit: Oops, just realised that rbalagopalan has beaten me to it.

 

[odyssey]

ALL

Please refrain from posting here with comments like "bribe is only $100" or bribe the customs guys. if you believe this is the only advise you can give, pls PM this to the OP.

In general, depending on the destination, exemption of 25K is available for stays of more than 5 days abroad.

Please keep in mind the following - the law/rule says that the value of goods is as deemed by the customs officer. This clause leaves room for interpretation, they do NOT have to accept your bills and they wont if they suspect that the bill is a fake or in some cases if the price is far lower than fair market price. Most of the time though you will find that they are not that unreasonable.

Radio transmitting devices especially at certain frequencies, VoIP phones, high precision GPS, are not allowed into the country, doesn't matter how much you are willing to pay.

For Transfer of Residence, you can bring whatever you have "used" abroad as you are "shifting" your personal items. Electronics are still chargeable with a lower rate for TR but again, you will find that they are very reasonable unless they start seeing many nos of the same items - 3 amplifiers, 3 sets of speakers, etc Essentially, they shouldn't get the impression that you are out to sell stuff here for profit.

cheers
Sridhar

 

[odyssey]

One more thing -
As I understand it or I have been told, there is no law against importing used stuff, however it depends on how you declare it since it can be misused. So if you buy an item and say "Onkyo 150W Stereo receiver" for $450/- thats fine, if you however say "Used Onkyo 150W Stereo receiver" for $450/- then they tend to think you are undervaluing the shipment and tend to fine you. The fine is many times the actual duty. If you extend this one step further, you could get an item free shipped to you but you pay duty on the fair market value. Since the customs guys have no way of figuring out used/new they just assume that its new and charge duty based on that. You will also find that there is no uniformity in peoples experiences with customs, this is simply due to the fact that it depends on how each officer looks at the case, there is a lot of room for interpretation. Here is one example

Stereo Speaker cable XYZ - charged at 35%
Computer cable XYZ - charged at 15% (for IT use)

cheers
Sridhar

 

[ravi_d]

ALL

Please refrain from posting here with comments like "bribe is only $100" or bribe the customs guys. if you believe this is the only advise you can give, pls PM this to the OP.

Sorry about that. Let me rephrase it.

On arrival at Mumbai air port after immigration you will be greeted with air port staff/boys working at the baggage claim area that they would help you clear all your items for you. They warn you that if you go on your own you will have to pay more than what they are asking and on top of that I'll have to open my luggage and take all the stuff out.
It's a tricky situation for you and you have packed all your stuff well, wrapped it multiple times with PE foam and stretch wrap and you're sure your items will reach home safely. After all the safety measures you taken you don't want to take out unwrap your items just to prove your genuineness to the customs officer and do a shoddy packing there at the airport and hoping your items would survive the next leg of your journey with the connecting domestic flight, cabs and buses there after. You will be forced to listen to the boy wisely offering help in clearing your stuff.

In case if you go to the customs officer you will be asked to leave your stuff you carrying with them and you will be given an option to visit them on some other working day to prove your stuff is used with the proof of purchase etc which would cost more than the silly price/gift the customs is asking you. In this situation too you don't want to leave your beloved hi-fi stuff which you bought with your hard earned money with them risking whether you would be getting it back in safe condition. Due to attachment with your hobby and your hi-fi you will be forced to take the help from customs and pay them a 'token of appreciation'/ gift in return for helping you with your stuff.

In case if you opt to leave your stuff there to prove your genuineness some other day please don't forget the Octroi guys who will be ready waiting to torture you while bringing your stuff back.

Imagine a situation when you bought some ex-demo speakers from UK at 40% the cost of the Indian retail price or you bought a new end of line model amp at 50% discount. The customs will not consider your declared prices and you will be slapped a duty on the 100% the value which you don't want.
Even though you want to deal genuinely somehow you will be forced to go in a customs friendly manner paying them what they are asking which is convenient to both.

 

[vivek.saikia]

You don't have to worry. You can comfortably set up a HI FI rig as you can even bring a container load of used equipments when you return. Once you stay in abroad for more than 3 years you can bring things on TR (Transfer of residence) with out any duty. In fact why only HI FI, you buy all house hold items and bring them here. Even if you are not awailing TR you can bring any used item along with you while returning. Please consult a C&F agent befor comig back on TR with regard to accurate rules.

Take a chill pill bud. You may go ahead and setup your hifi rig (even with pre used stuff if you please) and bring it back under 'Transfer of Residence"

For Transfer of Residence, you can bring whatever you have "used" abroad as you are "shifting" your personal items. Electronics are still chargeable with a lower rate for TR but again, you will find that they are very reasonable unless they start seeing many nos of the same items - 3 amplifiers, 3 sets of speakers, etc Essentially, they shouldn't get the impression that you are out to sell stuff here for profit.

cheers
Sridhar

Thanks all for this very useful piece of information. This is huge for me.
The did some more research on Transfer of Residence and found the following information:

MurthyDotCom : Moving to India

Needless to say, this forum rocks! :clapping:

 

[haisaikat]

Sorry about that. Let me rephrase it.

On arrival at Mumbai air port after immigration you will be greeted with air port staff/boys working at the baggage claim area that they would help you clear all your items for you. They warn you that if you go on your own you will have to pay more than what they are asking and on top of that I'll have to open my luggage and take all the stuff out.
It's a tricky situation for you and you have packed all your stuff well, wrapped it multiple times with PE foam and stretch wrap and you're sure your items will reach home safely. After all the safety measures you taken you don't want to take out unwrap your items just to prove your genuineness to the customs officer and do a shoddy packing there at the airport and hoping your items would survive the next leg of your journey with the connecting domestic flight, cabs and buses there after. You will be forced to listen to the boy wisely offering help in clearing your stuff.

In case if you go to the customs officer you will be asked to leave your stuff you carrying with them and you will be given an option to visit them on some other working day to prove your stuff is used with the proof of purchase etc which would cost more than the silly price/gift the customs is asking you. In this situation too you don't want to leave your beloved hi-fi stuff which you bought with your hard earned money with them risking whether you would be getting it back in safe condition. Due to attachment with your hobby and your hi-fi you will be forced to take the help from customs and pay them a 'token of appreciation'/ gift in return for helping you with your stuff.

In case if you opt to leave your stuff there to prove your genuineness some other day please don't forget the Octroi guys who will be ready waiting to torture you while bringing your stuff back.

Imagine a situation when you bought some ex-demo speakers from UK at 40% the cost of the Indian retail price or you bought a new end of line model amp at 50% discount. The customs will not consider your declared prices and you will be slapped a duty on the 100% the value which you don't want.
Even though you want to deal genuinely somehow you will be forced to go in a customs friendly manner paying them what they are asking which is convenient to both.

This is true for Kolkata as well only differnece being that in Mumbai the customs officers are much more proactive in "settling" your case outside the court only after doing an initial assessment of how much you can be milked. I was carrying two laptops one used and one new and had to pay 30 USD (my other collegue also did the same for 30 USD) as "tax " to them. bargained from 60 USD. They opened two out of 3 of my suitcases (one extra) but I am satisfied as I had actually 2 laptops, 1 netbook, 1 Record Player, lots of pendrives, etc. I have historically heard that Mumbai customs is known for this "settlement".

 

[gobble]

This is true for Kolkata as well only differnece being that in Mumbai the customs officers are much more proactive in "settling" your case outside the court only after doing an initial assessment of how much you can be milked. I was carrying two laptops one used and one new and had to pay 30 USD (my other collegue also did the same for 30 USD) as "tax " to them. bargained from 60 USD. They opened two out of 3 of my suitcases (one extra) but I am satisfied as I had actually 2 laptops, 1 netbook, 1 Record Player, lots of pendrives, etc. I have historically heard that Mumbai customs is known for this "settlement".

Well, All is well while they assess that they cannot fulfill or meet their performance targets with your piddly catch. Then once in a while there comes a Bollywood starlet or Hi-Society lady loaded with jewellery and they realize they can meet their monthly or annual target in one single swoop in a day and continue "settling" for the rest of the days ... hyeah:

--G0bble

 

[thatguy]

As I understand it or I have been told, there is no law against importing used stuff,

I could be wrong but I had researched this earlier and it looked like import of used consumer goods is not allowed. Import of capital goods, however, is permitted. I can't find all the links I had read then, but here is one that says something on the matter:

Second Hand Goods Export Import Policy of India - 2004-2009

After some extensive discussion with Fedex customer care, including asking shipper to pay the 15K, they reluctantly accepted my request to abandon the item.

Why would someone do that? The shipper ships the item in good faith assuming that you understand your country's custom rules and you decide to penalize him for that?

 

[anm]

walk through red channel and be ready to pay the duty. They get pissed off and let you go for free

 

[gobble]

All second hand goods, excepting second hand capital goods, shall be restricted for imports and may be imported only in accordance with the provisions of this Policy, ITC(HS), Handbook (Vol.1), Public Notice or a licence/certificate/permission issued in this behalf.

So what is that handbook - maybe it says electronics is allowed?

--G0bble

 

[Thad E Ginathom]

I read recently that the import of used photocopiers (Xerox) has been stopped, and that this is going to have a lethal impact on the many, many, small xerox shops who rely on buying this kit. I don't know if this legislation was specifically about copiers or if it affected other electronics too.