New Customs Rates?

[sidvee]

I got this e-mail from shop and ship yesterday:

"Hello, All. Please note that in accordance with the Finance Act, 2017 amending the Customs Tariff Act, 1975 dutiable goods imported for personal use will be classified under heading 9804 and cleared upon payment of customs duty based on the below structure. Furthermore, please note that books purchased for personal use will be considered dutiable goods.

Personal Use Goods Value


Customs Duty Payable (all inclusive)

Rs 0 - Rs 2,000


14.712%

Above Rs 2000 Rs 50,000


41.492%

Above Rs 50,000


41.492% and only after adjudication for policy violation under CTH 9804"

Cheers,
Sid

 

[rbalagopalan]

I did receive the update mail yesterday and was very much upset. :sad::sad::sad:

 

[bibin3210]

Couple of amendments too this fiscal year onwards:

a. It states that the Importer / Customs Broker must file the Bill of Entry before the end of the
next day, following the day (excluding holidays) on which the aircraft or vessel or vehicle carrying the
goods arrives at a Customs station at which such goods are to be cleared for home consumption
or warehousing.

b It further states that the following charges shall be levied by Customs for late presentation of
Bill of Entry (beyond the period as indicated in Point A above);
i. INR 5,000/- per day for the initial three days of default
ii. INR 10,000/- per day for the defaults post the initial three days

Thanks,
Bibin

 

[arj]

I got this e-mail from shop and ship yesterday:

"Hello, All. Please note that in accordance with the Finance Act, 2017 amending the Customs Tariff Act, 1975 dutiable goods imported for personal use will be classified under heading 9804 and cleared upon payment of customs duty based on the below structure. Furthermore, please note that books purchased for personal use will be considered dutiable goods.

Personal Use Goods Value


Customs Duty Payable (all inclusive)

Rs 0 - Rs 2,000


14.712%

Above Rs 2000 Rs 50,000


41.492%

Above Rs 50,000


41.492% and only after adjudication for policy violation under CTH 9804"

Cheers,
Sid

I also got that

also this value of 2000= Cost + Shipping + Insurance if any.....so in effect anything can be more than that depending on shipping cost

although not sure of CTH 9804..i believe it stands for Customs Tariff Head but looking up on this website talks of around 52% although practically the customs is slightly over 58%. the customs website is not really very informative

 

[drkrack]

In short ; the govt wants law abiding citizens to be taxed to the breaking point or , stop import and buy overpriced stuff with Indian dealers or turn into smugglers overnight by using alternate options of avoiding the payment of customs...

Since when this law will come into effect?

Sent from my Redmi Note 3 using Tapatalk

 

[anubisX]

I think from next month, May 1. Basically, our Govt. wants us to use Indian goods or buy from dealer / importer and not import anything ourselves. This might help the dealers / importers get more deals but aapni to fatii !

 

[Her Master's Voice]

... stop import and buy overpriced stuff with Indian dealers...

Not all Indian dealers sell overpriced stuff. But I admit that the dealers that sell reasonably priced stuff are a minority.

 

[corElement]

So if someone wanted to carry say a 55" TV from abroad, what was situation before and what is it now?

 

[rbalagopalan]

I think this is to Indirectly encourage / put pressure on the manufacturers and Brands to Make in India by importing the RAW materials (duty on raw material is less than finished product). Also to curb parallel importers who import in bulk in the head of personal effects. Cause CTH 9804 talks about import of items for personal use.

For example Denon 2300 showroom quote is as much as ?.72,000/- and in parallel market as low as ?42,000/-.

Sadly I am an Import freak. Just to say recently I have imported ATI AT3007 ie 300 x 7 channel power amplifier weighing around 80kgs packed and costing around$...... another heavy weight REL Studio III subwoofer weighing around 180kgs packed and costing around ...... Let me not spell it in the open forum and the list goes on and on

What ever I wanted I will just simply locate it anywhere in the globe and import it just like that I think this revision in import duty will put a speed breaker to me.

In fact my first import started in 2011 and the price of the audio gears have not increased in abroad. For example B&W 805 was selling between $1800 to $2000 in 2011 and the $ was around ?51/- plus duty was around 26% back then. Today also the B&W 805 is selling for same 1800 to 2000$ only but the $ is around ?68 and the duty structure is 42%.

That is why when ever I want to sell some of my item if the buyer quotes foreign price I use to challenge them to import and see the landing cost.

NEXT TO IMPORT DUTY another big problem for individual users importing is BIS (BUREAU OF INDIAN STANDARDS) certification. Yes from April 1 2016 Indian government has made is mandatory to produce BIS certificate for electronics item especially for POWER AMPLIFIERS, POWERED SUBWOOFERS, LASERDISK PLAYERS WITH AMPLIFIERS and many other items. You can google it and see the list GOV.IN website.

My ATI AT3007 has got caught in to this BIS chakkar and went up to the level of confiscate or sending it back to the seller. It took nearly 3 months for me to meet the departments requirement and get it released by the authorities.

So in a nut shell government says DO NOT IMPORT AND PATRONISE INDIAN MANUFACURERS AND DEALERS.

Thanks for Reading

R. Balagopalan

 

[rbalagopalan]

So if someone wanted to carry say a 55" TV from abroad, what was situation before and what is it now?

Earlier Importing was attracting 33.6% duty on CIF and while bringing just a flat duty of 15 to 20K INR in Chennai Airport.

Today Importing you need BIS certificate and a duty of 42% on CIF. While bringing I am not sure any how I am travelling to Germany and Sweden this month end I will try to sneek in and will ascertain while returning and post it here.

 

[krishnamurthy]

The silly folks do not realize they may cause demand destruction. The bean counters have absolutely no idea of the marketplace dynamics and just work on their whims and fancies.
The stuff you get here is lot of junk (failed models or inferior models or bad performance models) or so overpriced to the point of laughter.

They only need to study why Malaysia is so successful in electronics manufacturing with so few resources and land availability. The policy makers have no clue and they keep stumbling from one mis-step to another.

 

[mpw]

Earlier Importing was attracting 33.6% duty on CIF and while bringing just a flat duty of 15 to 20K INR in Chennai Airport.

Today Importing you need BIS certificate and a duty of 42% on CIF. While bringing I am not sure any how I am travelling to Germany and Sweden this month end I will try to sneek in and will ascertain while returning and post it here.

prepare to shell out some more new notes to get past the men in white and into the sunlight / darkness or whatever :lol:

The hard ship only facilitates speed money and things like that..

Its so sad :sad:

 

[elangoas]

Would the grey market exist after these amendments? :sad:

 

[mpw]

Would the grey market exist after these amendments? :sad:

More reason for it to exist IMO

 

[elangoas]

More reason for it to exist IMO

Better.. Some relief..

 

[rbalagopalan]

Would the grey market exist after these amendments? :sad:

Absolutely why not. The grey market will survive. It is unstoppable in fact this revised rate will discourage persons like me who import on official channel and to look out for a smuggler to bring it.

Let me explain how the so called Ritchie street or Used radio market works in Chennai.

Actually the famous Burma buzzar in Chennai was formed long ago when Refugees from Burma were fleeing in to India and reached to chennai. The burmees refugees were Tamilians and for their lively hood they started selling their belongings by putting them in platform in 1st line beach road and they found lot of demand was their for their items. So they wrote to the future refugees to bring in as much as possible especially electronics to sell here.

Once the war was over and the refugees have settled here they wanted a lively hood at that time the Tamilnadu Government constructed these Small shops and gave to them.

After refugees inflow stopped these guys didn't have any thing to sell so they started deliberately travelling and bringing stuffs to sell. Later they found Malaysia is more attractive to bring the electronics from, later in the advent of Singapore opening the free port they started to smuggle from there and sell. That is how chennai has become Hub for electronics especially Audio Video.

The group in Ritchie street 4 - 5 shop owners together have a big house rented in Singapore, and for 2 to 3 months all of them travel to Singapore in batches and buy all used and new electronics stuff and fill up the Room. Once they have collected on full 20 feet container of Load They ship everything in a container and the whole container will be accessed by an officer in setting with them and a nominal duty is levied.

Now you tell me where is the scope of Parallel market / smuggling get reduced what ever be the % of duty.

In the interest of curbing Parallel imports the duty is revised but ultimately it affects only people like us who import through proper channel for our own use and for the hobby.

PATHETIC.

 

[elangoas]

Absolutely why not. The grey market will survive. It is unstoppable in fact this revised rate will discourage persons like me who import on official channel and to look out for a smuggler to bring it.

Let me explain how the so called Ritchie street or Used radio market works in Chennai.

Actually the famous Burma buzzar in Chennai was formed long ago when Refugees from Burma were fleeing in to India and reached to chennai. The burmees refugees were Tamilians and for their lively hood they started selling their belongings by putting them in platform in 1st line beach road and they found lot of demand was their for their items. So they wrote to the future refugees to bring in as much as possible especially electronics to sell here.

Once the war was over and the refugees have settled here they wanted a lively hood at that time the Tamilnadu Government constructed these Small shops and gave to them.

After refugees inflow stopped these guys didn't have any thing to sell so they started deliberately travelling and bringing stuffs to sell. Later they found Malaysia is more attractive to bring the electronics from, later in the advent of Singapore opening the free port they started to smuggle from there and sell. That is how chennai has become Hub for electronics especially Audio Video.

The group in Ritchie street 4 - 5 shop owners together have a big house rented in Singapore, and for 2 to 3 months all of them travel to Singapore in batches and buy all used and new electronics stuff and fill up the Room. Once they have collected on full 20 feet container of Load They ship everything in a container and the whole container will be accessed by an officer in setting with them and a nominal duty is levied.

VoW.. This is great piece of information.. Never knew the history behind Burma Bazaar..Thanks for the clarity..

Now you tell me where is the scope of Parallel market / smuggling get reduced what ever be the % of duty.

In the interest of curbing Parallel imports the duty is revised but ultimately it affects only people like us who import through proper channel for our own use and for the hobby.

PATHETIC.

If this is the case, then they will co-exist.. Given the scenario, it would def turn off genuine imports...

 

[Thad E Ginathom]

I have some conflict between personal and political inclinations! So far as the latter is concerned, I am all for business in India producing profits for India (you know what they say: converts are the biggest fanatics ) and therefore favour a certain amount of protectionist strategy.

Personal inclinations... well, no need to say: whether it is hifi (not really buying any longer, but sometimes get a twinge) or any other goods, in the same boat as everybody else.

Will this duty rise help Indian manufacturers or dealers? No way. Even before this, the situation is bad: the last time I hankered after some gear (around the GBP 1K mark) from Europe, an Indian dealer had it available for twice the European price. I told him, thanks, but I can get a return flight and have a holiday too. If I make the same enquiry today? The price will, I'm sure, be higher still, and increased duty will be blamed.

Everybody will loose. Or loose worse, as the industry, local dealers and governments never got it together to offer fair prices on many goods anyway.

Anyway, I thought that the current political trend was towards reducing barriers to trade; both imports and exports. Looks like I was sadly wrong.

 

[krishnamurthy]

Absolutely why not. The grey market will survive. It is unstoppable in fact this revised rate will discourage persons like me who import on official channel and to look out for a smuggler to bring it.

Let me explain how the so called Ritchie street or Used radio market works in Chennai.

Actually the famous Burma buzzar in Chennai was formed long ago when Refugees from Burma were fleeing in to India and reached to chennai. The burmees refugees were Tamilians and for their lively hood they started selling their belongings by putting them in platform in 1st line beach road and they found lot of demand was their for their items. So they wrote to the future refugees to bring in as much as possible especially electronics to sell here.

Once the war was over and the refugees have settled here they wanted a lively hood at that time the Tamilnadu Government constructed these Small shops and gave to them.

After refugees inflow stopped these guys didn't have any thing to sell so they started deliberately travelling and bringing stuffs to sell. Later they found Malaysia is more attractive to bring the electronics from, later in the advent of Singapore opening the free port they started to smuggle from there and sell. That is how chennai has become Hub for electronics especially Audio Video.

The group in Ritchie street 4 - 5 shop owners together have a big house rented in Singapore, and for 2 to 3 months all of them travel to Singapore in batches and buy all used and new electronics stuff and fill up the Room. Once they have collected on full 20 feet container of Load They ship everything in a container and the whole container will be accessed by an officer in setting with them and a nominal duty is levied.

Now you tell me where is the scope of Parallel market / smuggling get reduced what ever be the % of duty.

In the interest of curbing Parallel imports the duty is revised but ultimately it affects only people like us who import through proper channel for our own use and for the hobby.

PATHETIC.

Does Ritchie street dealers have good reputation for replacement in case of problems with their equipment?
Do they have a 25-30% advantage over indian prices?

 

[rbalagopalan]

Does Ritchie street dealers have good reputation for replacement in case of problems with their equipment?
Do they have a 25-30% advantage over indian prices?

Ritchie street is well known for their used Audio Equipment and not new ones. You will get right from SIM AUDIO Moon to Takai there. It all depends. Way back till 2012 the knowledge level with regard to brand and functionality of these shop owners was less in fact they were not knowing what is DAC. I can quote so many example of High end gears going in for dirt cheap price. For example Moon Integrated went in for 25K INR.

Current years the next generation of these shop keepers have taken over who are Google geeks. So when they are calling me from singapore itself with regard to availability of a gear the price they quote is almost like Audiogon price + carrying charges and Lumpsum custom charges. Some times it is still worth it to buy.

You must have good contact to know really the condition of the equipment before hand otherwise you might get a DOA.

Now a days even the Singapore sellers have become smart. All good stuff are bought by Indonesians and Philippinos as they don't bargain much and what ever you are seeing in these countries classifieds sites are all mostly from Singapore market. They sell the poor items to Indian traders. So all the more we have to be careful nowadays with Ritchie street Items.

Burma Buzzar is known for New Items and especially for TVs and Airconditioners and Low & Mid segment AV receivers and speakers. Certainly we have minimum 30% margin less compared to showroom price.

There are so many Showrooms in rest of Tamil Nadu, Karnataka and Andhra who buy TV in bulk from Burma Buzar and sell as Indian piece to nave customers, by hook or crook most of the TVs will comfortably cross 12 months warranty and these showroom guys make huge profits.

Any body wants any thing from these two places ping me I can get the right item for the right price or if anyone wants to know the antecedents of any item in Ritchie street lemme know.

Thanks

Bala