[ajaypjayaraj]

What is the regulation when it comes to importing automobile spare parts, if you purchase online from a store outside India, for personal use and not for re-selling? Are there different regulations within the automobile spare parts category for non-electronic (just plastic parts), electronics parts, etc.? Tyres are different, so lets talk about parts other than tyres only. Can someone throw some light regarding the actual regulation about this please?

Sometimes they clear items without hassle and some other times the fine and duties charged makes the item 2-3 times costlier by the time it reaches you.

What I was told was importing without license is not allowed and hence first the buyer will need to pay the fine and then 36% duties.
Is this correct?
Is the 36% duty applied to the cost of the item?
Are there any charges other than this? Because even after applying 36% duties and fine, it does not justify the amount they quote.

Paying duty is fine, but logically, the duties shouldn't make items 2 or 3 times its cost. I just wanna know what the book says so that I am sure I am not overpaying next time I import a spare part to India.

[tsk1979]

Originally Posted by ajaypjayaraj

What is the regulation when it comes to importing automobile spare parts, if you purchase online from a store outside India, for personal use and not for re-selling? Are there different regulations within the automobile spare parts category for non-electronic (just plastic parts), electronics parts, etc.? Tyres are different, so lets talk about parts other than tyres only. Can someone throw some light regarding the actual regulation about this please?

Sometimes they clear items without hassle and some other times the fine and duties charged makes the item 2-3 times costlier by the time it reaches you.

What I was told was importing without license is not allowed and hence first the buyer will need to pay the fine and then 36% duties.
Is this correct?
Is the 36% duty applied to the cost of the item?
Are there any charges other than this? Because even after applying 36% duties and fine, it does not justify the amount they quote.

Paying duty is fine, but logically, the duties shouldn't make items 2 or 3 times its cost. I just wanna know what the book says so that I am sure I am not overpaying next time I import a spare part to India.

Around 35% duty will be applied, and FEDEX etc., will collect. For smaller items, its usually simple, but often for big items, Customs guys can demand more duty(36% of a price higher than what you pay). In that case you have the option of a fight or simply pay additional duty.
It depends on the whims and fancies of the case officer.

[ajaypjayaraj]

Originally Posted by tsk1979

Around 35% duty will be applied, and FEDEX etc., will collect. For smaller items, its usually simple, but often for big items, Customs guys can demand more duty(36% of a price higher than what you pay). In that case you have the option of a fight or simply pay additional duty.
It depends on the whims and fancies of the case officer.

I have imported an item that costs around Rs.5800. That is the actual cost as well as invoiced cost of the item. It is not an electronic item and just a plastic piece for cosmetic up-gradation. I am told to pay a fine of Rs.2500 and a further duty of a li'l over Rs.4800. When I asked him why is the duty so much, the immediate response from the guy at the Customs office was don't take it if you don't want! I asked him to explain how is 36% duty of 5800 coming upto 4800. Then he went on explaining something like insurance and handling charges and some things which I fail to understand because AFAIK, I have paid almost as much as the item cost for getting it shipped from EU to India and that must be covering all the handling that is required. What else is adding up to a "duty" of 4800 is what I wanna know.

Is this for real, I mean is this Rs.4800 and fine of Rs.2500 for a spare part which is just a piece of plastic costing Rs.5800 as per law or are they trying to act smart like you mentioned, as per his whims and fancies? I am more than willing to pay the actual duty of the item how much ever it is, but not anything outside the law. So just want to be sure if the claimed rates are correct for that item.

No Customs Officer BHPian onboard?

[Akshay1234]

Originally Posted by ajaypjayaraj

I have imported an item that costs around Rs.5800. That is the actual cost as well as invoiced cost of the item. It is not an electronic item and just a plastic piece for cosmetic up-gradation. I am told to pay a fine of Rs.2500 and a further duty of a li'l over Rs.4800. When I asked him why is the duty so much, the immediate response from the guy at the Customs office was don't take it if you don't want! I asked him to explain how is 36% duty of 5800 coming upto 4800. Then he went on explaining something like insurance and handling charges and some things which I fail to understand because AFAIK, I have paid almost as much as the item cost for getting it shipped from EU to India and that must be covering all the handling that is required. What else is adding up to a "duty" of 4800 is what I wanna know.

Is this for real, I mean is this Rs.4800 and fine of Rs.2500 for a spare part which is just a piece of plastic costing Rs.5800 as per law or are they trying to act smart like you mentioned, as per his whims and fancies? I am more than willing to pay the actual duty of the item how much ever it is, but not anything outside the law. So just want to be sure if the claimed rates are correct for that item.

No Customs Officer BHPian onboard?

From whatever I've dealt with these customs guys, they start quoting extra high prices so that you give them something under the table. Like TSK said it depends on their whims and fancies.

[ajaypjayaraj]

Originally Posted by akshay1234

From whatever I've dealt with these customs guys, they start quoting extra high prices so that you give them something under the table. Like TSK said it depends on their whims and fancies.

You know, from that 'take it or leave it' kinda quick response I got upon trying to clarify the unjustifiable charges they claimed, I felt what you guys said. But before I proceed any further I would like to know what the law says. I'll see about the rest after the clarification.

[NetfreakBombay]

Originally Posted by ajaypjayaraj

What I was told was importing without license is not allowed and hence first the buyer will need to pay the fine

Yes, that is correct. Only those with license can import. E.g: Amazon / Aramex / DHL / Local import agent. They can import on your behalf. Otherwise, a fine is applicable.

Originally Posted by ajaypjayaraj

Is the 36% duty applied to the cost of the item?

This 36% is on "landed cost" of the item.

E.g:

Item cost : 100$
Shipping : 10$
Insurance : 5$

Landed cost: Sum of all above

Duty will be on 36% of Landed cost.

[ajaypjayaraj]

Originally Posted by NetfreakBombay

Yes, that is correct. Only those with license can import. E.g: Amazon / Aramex / DHL / Local import agent. They can import on your behalf. Otherwise, a fine is applicable.

This 36% is on "landed cost" of the item.

E.g:
Item cost : 100$
Shipping : 10$
Insurance : 5$
Landed cost: Sum of all above
Duty will be on 36% of Landed cost.

Thanks NetfreakBombay for the clarification. If it is on the landed cost, the rates mentioned to me makes sense.

I was hoping that the duty is applied on the invoiced cost of just the item alone. Unfortunately that is not the case. Now I feel a little relieved about another item which was much more costlier, shipped a few years back from Germany for which I had to pay the similar fines and duties and had kind of a cheated feeling. Though they said the same thing back then, I wasn't convinced. Now that the same has happened again, and a third person confirms it, I guess there is nothing to worry.

[NetfreakBombay]

Originally Posted by ajaypjayaraj

I was hoping that the duty is applied on the invoiced cost of just the item alone.

Unfortunately, customs has the discretion to decide this cost. They can go by the invoice (that has actual item cost+ shipping ), or they can use their own judgement.

That is the reason sometimes they can reduce the duty 'under the table'.

[Aroy]

The customs duty is always on CIF (Cost, Insurance, Freight). That is why you have to be careful while importing small items. The IF part can be more than the C and you end up paying through your nose. The best option is to carry it in personal luggage (if feasible) and declare it. That way the I & F is zero, reducing the duty drastically.

Another thing to bear in mind is that the customs officers generally have the list price and discounted prices of most popular items imported, available to them, so they are well aware of the minimum cost of the item, and it is no use under invoicing.

[shashank.nk]

Originally Posted by ajaypjayaraj

You know, from that 'take it or leave it' kinda quick response I got upon trying to clarify the unjustifiable charges they claimed, I felt what you guys said. But before I proceed any further I would like to know what the law says. I'll see about the rest after the clarification.

From what I know of the law, customs is calculated on the CIF value i.e Cost,Insurance and Freight. They add 1% of CIF value as landing charges.
So if you bought a part for say 60 euros and used DHL,UPS etc to ship paying 40 euros additionally,they calculate duty on 101 euros (60+40+1%of 100)

Duty calculation is a messy affair, first they classify whatever you import based on chapter headings,description to find out the HSN code which then gives you the standard duty applicable on the product. The least is 5% and the highest i'm not sure.

In addition to the basic duty,they can charge you countervailing duty also called additional duty. The rate will be same as for excise duty say 12%

In addition,you have to pay Education cess at 2% and secondary education cess at 1%.

In your case I think the officer has classified your import as 'baggage' which allows him to charge duty at a flat rate of 35% and also charge Education cess and secondary cess at 2 and 1% respectively,in effect making you pay duty at a rate of 36.05%

EDIT:
Since classification is purely at their discretion,there's little we can do other than go to an appellate authority.

Use this notification to ensure you're not being ripped off in exchange rates:
http://www.cbec.gov.in/customs/cs-ac...snt25-2015.htm

Here's a duty calculator (by CBEC-Central Board of Excise and Customs) to help estimate duties for future imports:(unfortunately the link is down for the past 3 days)
https://www.icegate.gov.in/Webappl/

Note-This is based on my research as i'm also planning to import projectors from the US. I have no experience in dealing with customs officers.

[ajaypjayaraj]

Originally Posted by Aroy

The customs duty is always on CIF (Cost, Insurance, Freight). That is why you have to be careful while importing small items. The IF part can be more than the C and you end up paying through your nose. The best option is to carry it in personal luggage (if feasible) and declare it. That way the I & F is zero, reducing the duty drastically.

Another thing to bear in mind is that the customs officers generally have the list price and discounted prices of most popular items imported, available to them, so they are well aware of the minimum cost of the item, and it is no use under invoicing.

Yeah, in my case C is not to be seen anywhere. C is a dot! compared to I, F, D (duty), F (fine), etc. etc. I should be doing but luckily the item is not so costly, so the pinch is bearable and this time I could ignore it. But due to the uncertainty, I've always chosen other routes to import very costly items. Taken this chance only with not so expensive items. Thanks for the info. buddy.

Originally Posted by shashank.nk

From what I know of the law, customs is calculated on the CIF value i.e Cost,Insurance and Freight. They add 1% of CIF value as landing charges.
So if you bought a part for say 60 euros and used DHL,UPS etc to ship paying 40 euros additionally,they calculate duty on 101 euros (60+40+1%of 100)

Duty calculation is a messy affair, first they classify whatever you import based on chapter headings,description to find out the HSN code which then gives you the standard duty applicable on the product. The least is 5% and the highest i'm not sure......

Note-This is based on my research as i'm also planning to import projectors from the US. I have no experience in dealing with customs officers.

That is a lot of info. and clarifies everything I wanna know mate! I normally get things hand carried if the item is costly so that I don't have to go through all this. This item was not costly and was not really something that could fit into luggage. Hence chose to ship it directly. Best bet is like you said, to stay away if it could be hand carried to India. Must say, you have done your home work pretty well and Thank you for sharing it!

[ajaypjayaraj]

A few more doubts regarding the above matter. I assume what we discussed yesterday was about automobile parts imported for personal use and not for resale. And I understand that the duty is applicable on the landing cost of the item.

If that is the case, what is the duty for an item which I owned abroad and want to ship to my own address in India, like say a stereo or an alloy wheel or any automobile spare part for that matter? How is the cost calculated then? It is used and it is owned by me. It cannot be hand carried due to size, weight, etc. and has to be shipped to India and I also would be in India to receive the item. What happens in such a case? How is such a case treated by Customs in India?

[NetfreakBombay]

Originally Posted by ajaypjayaraj

It is used and it is owned by me. It cannot be hand carried due to size, weight, etc. and has to be shipped to India and I also would be in India to receive the item. What happens in such a case? How is such a case treated by Customs in India?

It is not allowed to import used goods via post. Such goods can be part of baggage though.

If used goods are imported, it will usually attract a penalty of 15k+. In addition:

1. It might not be possible to abandon the item (this can become criminal matter in extreme case)
2. Anti Dumping duty + penalty is applicable.

Specific rules + list of second hand goods allowed in page 24 :

http://dgft.gov.in/exim/2000/policy/...ntentE1213.pdf

[ajaypjayaraj]

Originally Posted by NetfreakBombay

It is not allowed to import used goods via post. Such goods can be part of baggage though.

If the person sending the item is travelling back to India, isn't there a way to send goods as unaccompanied baggage within some specified time from his travel date? Like within 1 month or so? I vaguely remember something like that but don't know the details. What about that option?

[TKMCE]

Looks like the amount of rupees you can bring into lndia from abroad without declaring has gone up from 10000 to 25000. The new customs form I got on the aircraft on my last tip mentions the higher amount This is a big help for those who work abroad but travel home regularly on short trips .The airport forex counter when I arrived was giving a disgraceful 56 rupees to a dollar and these higher limits are a big help to NRIs who are on short visits home to avoid these type of airport forex scams.