Expert: Roberto Gomes - 12/8/2009

Question
HI,

I am getting a iphone 3gs worth 450GBP via amazon.co.uk.My friend in uk will ship the phone to me in India.I would like to know if i neeed to pay any custom duty on the phone.


Answer
Dear Yash,

Indian Customs regulations says that on import of gifts, all goods imported into India from abroad is liable to duties of Customs under Section 12 of the Customs Act and also is liable to all the restrictions under the Foreign Trade (Development & Regulations) Act 1992. However, the Government has exempted gifts received from abroad by persons residing in India from the whole of duties of Customs and from restriction under FT (D&R) Act.

At present, import of goods up to the value of Rs. 5,000/- is allowed as gift, duty free. This exemption is allowed only for bonafide gifts imported by air or post. For the purpose of calculation of this value of Rs. 5,000/- the air freight or postal charges paid are not added. The clarifications that may be needed are as under:

VALUE RELATES TO WHICH COUNTRY:

Whether the value of Rs. 5,000/- means the value of the goods in India or at the country of the sender?

The value of Rs. 5,000/- is the value of the goods in the country from where the goods have been despatched. The sender may not necessarily be residing in the country from where the goods have been despatched.

Hope this helps.
Best Regards,
R.Gomes