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Govt. of India urges auto firms to raise localisation to 100%, failing of which may result in an increase in customs duty on imported auto parts-
Source: The Hindu.
FedEx is charging me both customs duty @35%, social tax @ 10% and igst on the below plus item cost at 28% for auto parts.
Is this normal?
FedEx is saying it is net 78%. The absolute last time I import anything into the country. Taxed to death.
Quote:
Originally Posted by th2
(Post 5703850)
FedEx is saying it is net 78%. The absolute last time I import anything into the country. Taxed to death.
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Yes duties on auto parts and even scale model cars are ridiculously high. We are back to the protectionist economy in the guise of all this talk about ‘self reliance’.
I had recently imported some trim parts for my car from Alibaba.
Funnily, the cost of the trim bits was around $20. Shipping was about $100. And I had to pay a duty of around Rs. 6000/-.
Officially the import duty on auto parts is 20%. But it is the officer's choice to accept the invoice or to determine the fair market value of a product.
Still overall cost is less than procuring from official A.S.S.
Most of the items seem to cost a lot for shipping. And unfortunately customs duty is calculated on landing cost. Which involves product cost + local taxes + shipping.
God forbid you try to import something by express shipping.
Unfortunately quality of locally made parts for my car is extremely poor. The Alibaba ones are so good that even A.S.S. bodyshop guys were fooled.
An update. I have recently imported OEM parts from Amayama via 3 seperate orders. One of them was shipped via EMS (i.e., regular mail parcel) and the other 2 via FedEx.
The EMS parcel only attracted a customs duty of 15%. The FedEx parcels attracted customs + IGST, which together came to around 52% net.
Go figure.
If we can select the shipper, selecting EMS may be cheaper from a duties point of view.
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