Team-BHP - Question about Indian Customs and your experience
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Quote:

Originally Posted by Ranger747 (Post 5267330)
I recently bought some guitar gear from Singapore. The whole thing including shipping cost me about 500USD. But I ended up paying 34K INR as tax.

Only thing that DHL can modify is code based on which rates are calculated. You should find some mention of "HSN Code".

based on the item, is it possible to classify as something else ? For example, if it interfaces guitar amp to PC, can you call it PC component ?

Quote:

Originally Posted by NetfreakBombay (Post 5267549)
Only thing that DHL can modify is code based on which rates are calculated. You should find some mention of "HSN Code".

based on the item, is it possible to classify as something else ? For example, if it interfaces guitar amp to PC, can you call it PC component ?

Classifying the item as something else is basically fraud and if caught you will end up paying even more as a penalty.

But if the item is wrongly classified, you can try to get that corrected. But from what I have heard and experienced, the likes of DHL and FedEx are not very keen on helping out or applying the correct HSN. They just use the default (highest customs duty) code and clear the item fast.

Quote:

Originally Posted by Jaguar (Post 5267578)
Classifying the item as something else is basically fraud

tax evasion vs tax planning

One is Fraud , another is not. For example, guitar itself can't be classified as PC component, but this can be : https://thememusic.in/product/motu-m2/


Quote:

Originally Posted by Jaguar (Post 5267578)
But if the item is wrongly classified, you can try to get that corrected. But from what I have heard and experienced, the likes of DHL and FedEx are not very keen on helping out or applying the correct HSN. They just use the default (highest customs duty) code and clear the item fast.

Yes, they don't spend too much time on individual items. And they will explicitly opt out of SLA in case of any such request.

For business shipments, finding out appropriate classification is non-trivial.

Quote:

Originally Posted by NetfreakBombay (Post 5267599)
Yes, they don't spend too much time on individual items. And they will explicitly opt out of SLA in case of any such request.

For business shipments, finding out appropriate classification is non-trivial.

I feel this is exactly what happened. Now they have no interest in replying to my query. I don't have much hope I will see any of that tax money ever again. Atleast one can learn not to repeat the mistake. I don't know why the customs codes have to be so difficult to find and use for individuals.

Thanks for sharing your thoughts.

Quote:

Originally Posted by NetfreakBombay (Post 5267549)
Only thing that DHL can modify is code based on which rates are calculated. You should find some mention of "HSN Code".

based on the item, is it possible to classify as something else ? For example, if it interfaces guitar amp to PC, can you call it PC component ?

I regularly import and run into customs. My 2 cents:

HSN should be thoroughly studied before passing it to the shipper, it is always best to get it from the Shipper and then find related India HSN on Google.

Once HSN is identified, look up duty rate which generally have 3 component:
  1. Basic Custom Duty (BCD) - This is the basic rate (say 10%) discovered through the HSN code
  2. Cess or Surcharge - This is generally 10% cess on BCD (say 10% of 10% = 1%)
  3. IGST - This also depends on the HSN, most of the products are covered in 18% IGST, some are in 28% as well.

Do your research to find out how much duty you are expected to cough up when your good arrives in India.

The duty is calculated on Invoice value + Insurance (if any) + Freight, you will see CIF on your duty calculation.

Does anybody how much time does it take for a small parcel to pass customs? Tracking shows this:

Question about Indian Customs and your experience-screenshot-20220428-23.24.16.png

There has been no change in the status since then. Is it normal?

P.S: Package is via USPS First-Class Mail.

Can one bring his or her personal luxury watch that he or she has been using for years when travelling to India? What rules are applicable for an OCI card holder travelling to India wearing his or her personal luxury watch like a Rolex Datejust, for example?

Quote:

Originally Posted by joe1980 (Post 5563075)
Can one bring his or her personal luxury watch that he or she has been using for years when travelling to India. What rules are applicable for an OCI card holder travelling to India wearing his or her personal luxury watch like a Rolex Datejust for example.,?

There's no limit for bonafide personal goods and articles which are for your personal use. As far as I know there's no distinction between OCI card holder or a person on tourist visa as such.

What is confusing me is this piece of information here: https://www.nriguides.com/indian-cus...es-for-watches

Once they say personal item and at the same time they say that the value shall not exceed Rs. 50,000 which sounds ridiculous. Hence my confusion.

Quote:

Originally Posted by joe1980 (Post 5563082)
What is confusing me is this piece of information here: https://www.nriguides.com/indian-cus...es-for-watches

Once they say personal item and at the same time they say that the value shall not exceed Rs. 50,000 which sounds ridiculous. Hence my confusion.

I suppose this is for items which are new and boxed. It doesn't apply to personal belongings. You don't pay duty for bringing your stuff from abroad. Imagine a person bringing his Macbook and iPhone already in use and paying duty for it.

Quote:

Originally Posted by joe1980 (Post 5563082)
What is confusing me is this piece of information here: https://www.nriguides.com/indian-cus...es-for-watches

Once they say personal item and at the same time they say that the value shall not exceed Rs. 50,000 which sounds ridiculous. Hence my confusion.

Bought a watch in US and wore it when traveling back to India. No questions asked. Personal items in use are not in scope of duty.

Quote:

Originally Posted by joe1980 (Post 5563082)
What is confusing me is this piece of information here: https://www.nriguides.com/indian-cus...es-for-watches

Once they say personal item and at the same time they say that the value shall not exceed Rs. 50,000 which sounds ridiculous. Hence my confusion.

The key here is to unbox the stuff. Duty will be applicable for new items brought from abroad. If you are too skeptical, you can carry proof of purchase to show that the item was purchased long back and has been used.

For expensive items that you take from India and bring back, there is some formality where you can declare the item with customs during departure to avoid duties when bringing the same item back.

Luxury watches are classified as jewellery for customs


Quote:

Originally Posted by joe1980 (Post 5563075)
What rules are applicable for an OCI card holder travelling to India wearing his or her personal luxury watch like a Rolex Datejust for example.,?

If someone is not a resident and visiting for short duration, this would not be an issue. Duration should be less than 6 months.

Worst case scenario :

Traveller can deposit it with customs and get it back while flying out of India.

"A passenger may request the Customs to detain his
baggage either for re-export at the time of his departure
from India or for clearance subsequently on payment of
duty.
The detained baggage would be examined and full details
will be inventoried.
Such baggage is kept in the custody of the Customs and a
Detention Receipt will be issued."

http://delhicustoms.gov.in/pdf/Trvl-Guide.pdf

Can I carry this from USA to India?

I want to get this from USA and would ask a friend to get it in cabin/check-in baggage. Would there be any additional taxes upon arrival in India?

Quote:

Originally Posted by snap2329 (Post 5659314)
Can I carry this from USA to India?

I want to get this from USA and would ask a friend to get it in cabin/check-in baggage. Would there be any additional taxes upon arrival in India?

From what I know if its price is less than 50k the invoice can be shown and be exempt from Customs duties even if the luggage is flagged down. Normally it shouldnt.


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