Import duties on equipment

rahuln

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Sep 15, 2011
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243
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Location
Hyderabad, India
Hi,

I ordered some equipment for my WFH setup from B&H, US. To my surprise, I was charged 10% duty + 1% surcharge and 28% GST on the total amount as custom duty. I thought it will be based on the item HSN code but apparently, the HSN code only applies to commercial imports, and all personal import goods are charged at a flat rate.

Is this true? The purchase price is now quite a bit more than expected.
 
The goods will be of courier mode, then you provide payment proof ( PayPal or online transfer ) for the clearance plus KYC docs, duty would be 42.08% otherwise the duty percentage would be 77.28%.
 
Last edited:
The goods will be of courier mode, then you provide payment proof ( PayPal or online transfer ) for the clearance plus KYC docs, duty would be 42.08% otherwise the duty percentage would be 77.28%.
Yes, the goods are delivered by DHL paid online to B&H via card. DHL asked for the KYC document and paid import duty on my behalf. Yes, the total duty paid including GST was 42.08%.
 
Hmm, decidedly odd. You should’ve been charged at the ~77% rate that Srini mentioned. It was the rate applied to my import late last year before I produced my IEC.
Do you mean the HSN code for the product? It was mentioned on the invoice but Indian Custom charged it under "98049000" which is 10% Basic + 28% GST and some additional surcharges.
 
Hmm, decidedly odd. You should’ve been charged at the ~77% rate that Srini mentioned. It was the rate applied to my import late last year before I produced my IEC.
Unless otherwise you have not submitted the payment proof made to purchase the goods, they will charge 77.28%.

Generally Fedex or UPS or DHL will call the client and ask for KYC docs plus commercial invoice plus payment proof made, if the consignment is coming in courier mode.
 
Unless otherwise you have not submitted the payment proof made to purchase the goods, they will charge 77.28%.

I did submit all purchase documentation, though.

Generally Fedex or UPS or DHL will call the client and ask for KYC docs plus commercial invoice plus payment proof made, if the consignment is coming in courier mode.

FedEx initially set duties at 77.28%. Then, I told them I had an IEC. It was accordingly revised downwards based on the applicable HS code. The officer examining the BOE then said that since the item was imported for personal use, it should be assessed duties under 9804. I then had to point to Customs documentation that specifically states that 9804 cannot be applied to items brought in under an import license, regardless of end use.
 
Generally Fedex or any other company try to set duty to 77.28% to expedite their fast track clearance system before arrival of goods by cargo mode. We have to be double clear to send all the KYC docs plus payment proof plus commercial invoice thru their online portal or email given plus it is hard earned money, so it is better to spend some time and call the customer care inform that all docs submitted and they have to ensure the duty should be 42.08%
Regards
 
Hi,

I ordered some equipment for my WFH setup from B&H, US. To my surprise, I was charged 10% duty + 1% surcharge and 28% GST on the total amount as custom duty. I thought it will be based on the item HSN code but apparently, the HSN code only applies to commercial imports, and all personal import goods are charged at a flat rate.

Is this true? The purchase price is now quite a bit more than expected.
Yes... these are charged on the landing cost (product value + courier charges). Comercial imports are less charged but it needs IEC and GST registration of the import organization.
 
Generally Fedex or any other company try to set duty to 77.28% to expedite their fast track clearance system before arrival of goods by cargo mode. We have to be double clear to send all the KYC docs plus payment proof plus commercial invoice thru their online portal or email given plus it is hard earned money, so it is better to spend some time and call the customer care inform that all docs submitted and they have to ensure the duty should be 42.08%
Regards
DHL did quite a good job in that way. They proactively called me and asked for a KYC document. Also, they had the commercial invoice from the seller which had the payment details. So, I didn't had to do anything to get the 42% duty.
 
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