Section 8a1. A primer on Indian Customs Duties

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By Rajkamal Rao 

Go back to What to ship


No matter how you arrive at deciding on your packing list, remember that all items are subject to customs duties at the Indian port.

For purposes of this discussion, we will assume that returnees will be treated under the Indian government’s “Transfer of Residence” (TR) customs policy.  This requires that the returnee has stayed abroad at least for two years, the total stay in India on short visits during the last two years has not exceed 6 months, and the returnee has not availed of this benefit during the last three years.

The official policy is to assume that the value of all goods (from TVs to aircraft) under TR does not exceed INR 5 Lakhs.  And that returnees are limited to shipping only one unit of each item.  In other words, two TVs cannot be shipped under the TR policy.  And most goods are charged at a flat 15% ad valorem + 3% educational cess rate.

But as a practical matter, these restrictions are meaningless as very few returning families can meet the policy’s guidelines.  Shipping agents therefore outline the following unwritten rules: 

In general, duty is not charged for any items owned by the returnee for more than 1 year. 

For all newer items, the flat rate is 35% (including for furniture).  For electronics, the first item is charged at 15%, the second at 35%. 

Say you transport 2 TVs; then, the first TV is assessed at 15% and the second, at 35%.  But if the TVs are more than 1 year old, no duty applies. 

If you are a corporate client, Indian customs will assess total duties by conducting a detailed inventory of your shipment and sending a bill to your company.  But if you are moving on your own, negotiations are possible and are indeed encouraged.  Experienced customs agents suggest that negotiations should start at 25% of the official duty and work your way up depending upon the service provided.

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