I found the following in another forum and this may be of interest to others, and to me almost like reading a John Grisham thriller!
Hi All,
I'm an Indian citizen. I have a friend in Italy who would like to send me a somewhat large piece of furniture as a gift (she's a furniture designer). She will be marking the shipment as a 'gift'. The item is for my personal use. The package is large, about 1.6m x 1.6m x 2.6m.
Her understanding is that I would need something like an 'import license' in order to receive the shipment. When I did some more research, I found out about something called an IEC (Import-Export code) number that I would need to obtain to receive it.
I spoke with the local DGFT (Directorate General of Foreign Trade) office briefly and he said that I would indeed need an IEC number to receive the package. But I forgot to ask about the "import license", and now they're closed until monday.
So my questions are:
1. The law says that items for personal use do not require me to have an IEC number. [Source: http://www.dgft.org/IEC_Code.html] Yet the DGFT guy said I would need one. What gives?
2. Is obtaining an IEC number different from obtaining an "Import License" ?
3. Do I need to have an Import License?
4. Why do people in positions of power make it difficult to do beautiful things like giving gifts?
Thanks to all who can chip in with useful advice!
Neville
Posts: 44,834 I don't think you need an import licence. Some of us have brought entire houses full of furniture here and never had such a thing.
It's a gift; you are not importing it. However, that does not mean it is exempt from customs duty etc. Your friend will have to declare its value: Indian customs may or may not agree!
People in power make these things expensive, if not difficult, for two reasons: to protect their tax revenue on locally sold items, and to protect the jobs and businesses of those making the item locally.
Posts: 38 I called up and spoke with the DGFT again for clarification. As is common in Indian offices, this time I heard a different tune from a different person. Here's the conversation:
"If you are using it for personal purposes and not for trading purposes, you can simply use the IEC number 0100000053, which is designated for such kind of imports. According to the law, you do not require any IEC code for yourself."
"It's a 600kg shipment. Won't Customs make a fuss over it?"
"If you can satisfy Customs that this is for your personal use and not for trading, they will not deny your the shipment."
"Is it safer that I get an IEC code?"
"See, if you want to get an IEC code as an individual then we will issue it. No problem. But I have explained the law."
"OK. What about an Import License? Do I need that?"
"No. Import license is not required in your case. That is only for restricted goods and other such special cases."
So the situation is pretty clear. My inclination is to have the item shipped to myself, marked as a "gift" and use the IEC code 0100000053 if required. That is completely legit according to the letter of the law.
The shipment will take about 15 days to arrive. In the mean time, I can obtain the IEC code for myself. In case Customs gets upset, they will send me a letter saying "We don't believe this is for personal use. Please send us your IEC number." Then I can send them my IEC number and they can release the shipment.
Neville
Still, I recommend you to use an agent to collect and clear your crate. Doing it yourself is a very tedious job.
Posts: 38 Quote:
Originally Posted by Nick-H
Good luck... I suspect you won't really need it and that all will be well.
Still, I recommend you to use an agent to collect and clear your crate. Doing it yourself is a very tedious job.
The Italian shipping company (it's coming from Italy) is supposed to have it delivered to our doorstep in Coimbatore. Do you mean I or someone else has to go to Chennai to receive the crate?
Posts: 44,834 No... if you, or the people sending the furniture, have paid for a door-to-door service, then that is what you should get: the guys this end will handle all the port and customs officials.
Posts: 1 i imported perfumes 20 botles cost 1500 rs as gift parcel, custom in ahmedabad is asking for IEC code, or they will charge penalty of 5000 rs and agency charge are 4000 rs cost, other receiptble cost 2000 rs, transportation cost 2000 . so total cost 13000 rs of 1500 rs value consignment. i cant see any LPG policy for unaware indian citizen
If IEC code is to protect goods not to been imported with out paying tax, than u can also charge tax on gift parcel if u suspect it for commercial use, y u need formality of IEC for first time importer.
law should be such that no deciding authority should be given to any individual, here custom commissioner is deciding authority, how to convince a rigid person that no one is going import 20 bottles of perfume for selling or commercial purpose.
i am sorry to say after this 3 tedious day passing through air port and still didn't get my package i am no more proud to be staying here.
murali
Hi All,
I'm an Indian citizen. I have a friend in Italy who would like to send me a somewhat large piece of furniture as a gift (she's a furniture designer). She will be marking the shipment as a 'gift'. The item is for my personal use. The package is large, about 1.6m x 1.6m x 2.6m.
Her understanding is that I would need something like an 'import license' in order to receive the shipment. When I did some more research, I found out about something called an IEC (Import-Export code) number that I would need to obtain to receive it.
I spoke with the local DGFT (Directorate General of Foreign Trade) office briefly and he said that I would indeed need an IEC number to receive the package. But I forgot to ask about the "import license", and now they're closed until monday.
So my questions are:
1. The law says that items for personal use do not require me to have an IEC number. [Source: http://www.dgft.org/IEC_Code.html] Yet the DGFT guy said I would need one. What gives?
2. Is obtaining an IEC number different from obtaining an "Import License" ?
3. Do I need to have an Import License?
4. Why do people in positions of power make it difficult to do beautiful things like giving gifts?
Thanks to all who can chip in with useful advice!
Neville
Posts: 44,834 I don't think you need an import licence. Some of us have brought entire houses full of furniture here and never had such a thing.
It's a gift; you are not importing it. However, that does not mean it is exempt from customs duty etc. Your friend will have to declare its value: Indian customs may or may not agree!
People in power make these things expensive, if not difficult, for two reasons: to protect their tax revenue on locally sold items, and to protect the jobs and businesses of those making the item locally.
Posts: 38 I called up and spoke with the DGFT again for clarification. As is common in Indian offices, this time I heard a different tune from a different person. Here's the conversation:
"If you are using it for personal purposes and not for trading purposes, you can simply use the IEC number 0100000053, which is designated for such kind of imports. According to the law, you do not require any IEC code for yourself."
"It's a 600kg shipment. Won't Customs make a fuss over it?"
"If you can satisfy Customs that this is for your personal use and not for trading, they will not deny your the shipment."
"Is it safer that I get an IEC code?"
"See, if you want to get an IEC code as an individual then we will issue it. No problem. But I have explained the law."
"OK. What about an Import License? Do I need that?"
"No. Import license is not required in your case. That is only for restricted goods and other such special cases."
So the situation is pretty clear. My inclination is to have the item shipped to myself, marked as a "gift" and use the IEC code 0100000053 if required. That is completely legit according to the letter of the law.
The shipment will take about 15 days to arrive. In the mean time, I can obtain the IEC code for myself. In case Customs gets upset, they will send me a letter saying "We don't believe this is for personal use. Please send us your IEC number." Then I can send them my IEC number and they can release the shipment.
Neville
Still, I recommend you to use an agent to collect and clear your crate. Doing it yourself is a very tedious job.
Posts: 38 Quote:
Originally Posted by Nick-H
Good luck... I suspect you won't really need it and that all will be well.
Still, I recommend you to use an agent to collect and clear your crate. Doing it yourself is a very tedious job.
The Italian shipping company (it's coming from Italy) is supposed to have it delivered to our doorstep in Coimbatore. Do you mean I or someone else has to go to Chennai to receive the crate?
Posts: 44,834 No... if you, or the people sending the furniture, have paid for a door-to-door service, then that is what you should get: the guys this end will handle all the port and customs officials.
Posts: 1 i imported perfumes 20 botles cost 1500 rs as gift parcel, custom in ahmedabad is asking for IEC code, or they will charge penalty of 5000 rs and agency charge are 4000 rs cost, other receiptble cost 2000 rs, transportation cost 2000 . so total cost 13000 rs of 1500 rs value consignment. i cant see any LPG policy for unaware indian citizen
If IEC code is to protect goods not to been imported with out paying tax, than u can also charge tax on gift parcel if u suspect it for commercial use, y u need formality of IEC for first time importer.
law should be such that no deciding authority should be given to any individual, here custom commissioner is deciding authority, how to convince a rigid person that no one is going import 20 bottles of perfume for selling or commercial purpose.
i am sorry to say after this 3 tedious day passing through air port and still didn't get my package i am no more proud to be staying here.
murali
