New Import Taxes and Duties Applicable 2020

magma

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please read carefully the new customs notifications we received
taking into effect FEB 2020

the duty is 75% plus effective from feb 2020 ( cumulative of basic customs AND IGST cleared under HS9804 )
even if you import with a PERSONAL IEC code
( yes a commercial iec code will attract lower duties )
also please note the last para
there are no more value based exemptions anymore

please import knowing the law
so dont be surprised when you are hit with a duty bill
( yes there are instances when you can get away - but the acutal law as in the pdf below )


Above is not to deter or scare anyone from importing ( there may be many instances where one would have gotten through paying lower duties )
however
I received the notification in Feb 2020
hence i thought of sharing
May be useful to some - may be bullocks to others
 

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Wow nice. Is this a public document? Can I share it outside this forum?

MaSh
 
please read carefully the new customs notifications we received
taking into effect FEB 2020

the duty is 75% plus effective from feb 2020 ( cumulative of basic customs AND IGST cleared under HS9804 )
even if you import with a PERSONAL IEC code
( yes a commercial iec code will attract lower duties )
also please note the last para
there are no more value based exemptions anymore

please import knowing the law
so dont be surprised when you are hit with a duty bill
( yes there are instances when you can get away - but the acutal law as in the pdf below )


Above is not to deter or scare anyone from importing ( there may be many instances where one would have gotten through paying lower duties )
however
I received the notification in Feb 2020
hence i thought of sharing
May be useful to some - may be bullocks to others
How much is the duty with commercial code?
 
Wow nice. Is this a public document? Can I share it outside this forum?

MaSh
well i received mine from the commisioners office
so its definitely official
he didnt tell me its secret !!!!
so im sure you can share it

How much is the duty with commercial code?
with a commercial code
you obviously will need the correct paperwork
invoicing documents , supporting IEC,and all other paperwork to show forex transaction from a business/ corporate account ( NOT any personal account )
also to get the igst set off you will need a proper bill of landing and customs cleared docs with your igst number

all in all the total duty charged is a cumulative of the basic duty , educational cess and IGST
all this will depend on the HSN number of the item

hence it is impossible to say without knowing the HSN

for personal importers the hsn is default at 9804

however for commercial importers we mention the exact hsn
 
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This detailed document is available in "circulars" on icegate or dgft web site.

with a commercial code
you obviously will need the correct paperwork
invoicing documents , supporting IEC,and all other paperwork to show forex transaction from a business/ corporate account ( NOT any personal account )
also to get the igst set off you will need a proper bill of landing and customs cleared docs with your igst number

all in all the total duty charged is a cumulative of the basic duty , educational cess and IGST
all this will depend on the HSN number of the item

hence it is impossible to say without knowing the HSN

for personal importers the hsn is default at 9804

however for commercial importers we mention the exact hsn
The same was told to me by DHL in March 2020. But somehow I managed the clearance with my IEC and specific hsn.
 
Might apply to anything imported without an import licence.
it applies for anything that is imported without an iec
because anything without an iec will be classified under 9804 HSN

most items that are bought under personal name from chinese shopping sites are marked personal and or gift

in both these situations the same duty structure will apply
 
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According to what I have understood, this is a clarification for items imported as "gifts" upto a cif value of Rs.5000 and for which duty exemption was sought previously.

But, yay, rakhis are still exempted! :rolleyes:
 
According to what I have understood, this is a clarification for items imported as "gifts" upto a cif value of Rs.5000 and for which duty exemption was sought previously.

But, yay, rakhis are still exempted! :rolleyes:

Keith
The exact same rules apply for all personal imports without an IEC
 
Well, in my opinion in too, the annexed Notification relates to Gifts.

In a nutshell, an earlier notification prohibited imports above rs 2000 rs. This was rescinded by another notification by DGFT and value cap of 2000 rs was removed.
Later lot of Chinese portals and websites were sending goods marked as "gifts" and customs wasn't charging anything if they were under the. value of 5000rs.
This was changed by the Govt in December 2019 and now the same is charged with duty.

It is with regard to and clarifying these two notifications which lay conflicting amounts of rs 2000 and 5000 that this current notification of 2020 (that is annexed) has been put out.

Secrion 14 talks of valuation and a direction has been made to Customs be more thorough. the notification put here doesnt change the position that has existed since December 2019. It is of help though for a lot of members who might have thought that lesser valued items will not attract any duties.
I personally have a package worth a couple of hundred pounds enroute and I better read up more should I not be as lucky as I have been the last few times.:)
 
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Does anybody else think that these rules and notifications are deliberately obfuscated and worded in obtuse language to leave them open to interpretation and aid the corrupt (which is almost all of us)?
It is almost always like that, the person who has the authority to draft such a law, is usually the one who's maximally benefited by such interpretations. He will be responsible to share the part of regular collection to respective political master; any reductions in that amount will be detrimental to his tenure on that chair.

They could have made it more simpler ; Something like "Customs will be double the GST for the product" and be done with it, they won't. @magma Thanks for sharing, we need to be careful while ordering and include the 'customs worst case scenario' while calculating the end user costs.

BTW, I had ordered Ares2 DAC (58k) before lock down, was charged 8.2k customs and Wasn't charged anything for 6sn7 tubes from eBay USA worth 11.5k both delivered recently.
 
Does anybody else think that these rules and notifications are deliberately obfuscated and worded in obtuse language to leave them open to interpretation and aid the corrupt (which is almost all of us)?

You are absolutely right. The better to "confuse" rather than the "convince" policy always works well in the Indian scenario.
 
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