1 BAGGAGE AND BONA FIDE BAGGAGE.
Q.1 What is baggage? What articles are treated as bona fide baggage under
Custom Baggage Rules, 1998?
Q.2 Are there any restrictions on import of gifts / souvenirs as
baggage?
Q.3 Can a passenger bring in consumer goods in commercial quantities?
Q.4 Please describe the situations under which a licence is required
for import of goods or articles as baggage
Q.5 How are goods classified that are brought in by a carrier who is
not owner of such goods?
Q.6 What are the applicable rules regarding import of commercial goods
as part of baggage?
Q.7 What are the rules for Declaration & Clearance of Baggage? What are
the consequences of mis-declaration / non-declaration?
2 LEGAL FRAMEWORK
Q.8 What is the legal framework relating to baggage? Explain the
relevant provisions of the Customs Act, 1962
3 DEFINITIONS
Q.9 Kindly explain the definitions of important terms used in the
Custom Baggage Rules, 1998
4 BAGGAGE RULES APPLICABLE TO DIFFERENT CATEGORIES OF PASSENGERS
Q.10 What are the different categories of in-bound passengers?
Q.11 What are the duty free allowances for in-bound Indian Residents
and Foreigners residing in India?
Q.12 What are the duty free allowances for Indian Professionals
returning to India?
Q.13 What are duty free allowances for tourists visiting India?
Q.14 What is transfer of residence? What are duty free allowances for
persons transferring residence?
Q.15 What is the rate of duty applicable on transfer of residence?
Q.16 Whether Foreign nationals, other persons and persons travelling
together are eligible to avail benefits under transfer of residence?
5 APPLICABILITY OF BAGGAGE RULES TO IMPORT OF SPECIFIC ITEMS AS BAGGAGE
Q.17 Can one import Commercial Samples as baggage?
Q.18 What is the value of gifts one can import, duty free, through post
or air freight? .
Q.19 What quantity of Alcoholic Drinks / Cigarettes can be imported as
baggage duty free? What is the applicable Customs duty for imports in
excess of such duty free quantity?
Q.20 How much jewellery can a person returning to India Import free of
duty?
Q.21 Who can import Gold & Silver as baggage? What is the maximum
quantity that can be imported? What is the rate of duty?
Q.22 What are the rules applicable to import of Foreign Exchange /
Currency and to import of Indian Currency?
Q.23 Who can import Fire Arms as baggage? What are the conditions under
which Fire Arms can be imported?
Q.24 Can Pet animals be imported? If so, what are the conditions?
Q.25 How does one deal with Baggage of Deceased Person?
Q.26 What is Unaccompanied Baggage? Are duty free concessions available
for Unaccompanied Baggage?
Q.27 Who can import Passenger Cars? What is the applicable rate of
duty?
Q.28 In what manner do baggage rules apply to Airline Crew? Can members
of crew import laptop into India?
Q.29 What is the General Rate of Customs Duty other than specific rates
on specified articles mentioned above? What are the different types of
Customs Duty?
6 BAGGAGE RULES FOR OUT-BOUND PASSENGERS
Q.30 Are out-going passengers subject to customs clearance? What
articles are prohibited or restricted for export as baggage?
Q.31 What are the requirements for export of gold jewellery through
baggage?
Q.32 Is export of foreign currency & Indian currency permissible, and
if so to what extent?
7 RESTRICTED AND PROHIBITED GOODS
Q.33 Which are the restricted and prohibited goods for import and/or
export?
8 VIOLATIONS AND PENAL PROVISIONS
Q.34 Describe the different types of violations of customs laws and the
penal provisions that are attracted?
9 REFERENCES
10 SUBJECT INDEX
Chapter 1
BAGGAGE AND BONA FIDE BAGGAGE
Q.1 What is baggage? What articles are treated as bona fide baggage under
Custom Baggage rules, 1998?
"Baggage" means possessions or belongings of a person
with which one travels while coming into or going out of the country. Such
baggage could be accompanied or unaccompanied with the person while
travelling. It covers personal and household effects normally carried by
passengers.
Baggage has not been exhaustively defined in the Customs
Act, 1962. Section 2(3) of this Act merely states that baggage includes
unaccompanied baggage but does not include motor vehicles.
Section 79 of the Customs Act, 1962 deals with bona fide baggage exempted
from duty. In exercise of the power given under this section, the Central
Government has notified Custom Baggage Rules, 1998 (as amended from
time-to-time) regulating the rules applicable to a passenger’s baggage
including duty free allowance, levy of custom duty or exemption thereof.
Used personal effects and household or consumer goods
which are generally required by a passenger for satisfying daily necessities
of life are treated as
bona fide baggage. It should be noted that the question of whether the
baggage of a passenger is
bona fide or not would depend on the profile of the passenger. If any
dispute or doubt arises as to ‘bona fide’ nature of
baggage, it should be referred to Addl. / Deputy Collector of Customs who
shall examine the case and take appropriate action (Circular No. 50/95. Cus.
(F.No. 520/127/94-Cus.VI) dt. 18-5-1995).
Q.2 Are there any restrictions on
import of gifts/souvenirs as baggage?
A passenger is allowed to bring in gifts or souvenirs as
baggage. Value of such articles would be covered within the allowances
admissible under the Baggage Rules.
Q.3 Can a passenger bring in consumer goods in commercial
quantities?
Import of consumer goods in commercial quantities is not
permissible under the EXIM policy and is not treated as
bona fide baggage but is
liable to be adjudicated.
Further, where a part of the goods are in commercial
quantity, the entire baggage does not become non- bona
fide and that portion of the baggage which is not in commercial quantity
would be eligible to free baggage allowance (CBEC Circular No. 64/96-Cus. VI
(F.No. 495/6/96-Cus.VI) dt. 17.12.1996).
Q.4 Please describe the situations under which a licence is
required for import of goods or articles as baggage.
A passenger does not need a licence to bring in as
baggage
bona fide
household goods and personal effects which are covered under the Baggage
Rules. These can be imported duty free within the allowances admissible
under the said Baggage Rules. Even if such import exceeds the general free
allowance, no licence is required and it can be released on payment of
applicable duty (as per ITC Public Notice No. 27/80 dt. 15-7-1980 as amended
from time to time).
Goods which are not
bona fide baggage and
therefore not covered by the Baggage Rules would require import licence and
in its absence are liable for confiscation under section 111(8) of the
Customs Act, 1962.
Samples of items that are freely importable under the
EXIM policy may also be imported as part of a passenger’s baggage without a
licence or permission but subject to duty free allowances admissible under
the Baggage Rules.
Exporters coming from abroad are allowed to import
drawings, patterns, labels, price tags, embellishments, etc. as part of
their baggage without licence/certificate / permission provided these are
intended to be taken back on their departure from India.
Q.5 How are goods classified that are brought in by a
carrier who is not owner of such goods?
Goods brought through a person who is merely acting as a
carrier cannot be classified as ‘gifts’ or as ‘personal baggage’ of the
carrier but would be classified as imported goods requiring a valid import
licence (Saroj Goenka
vs. Collector of Customs, Madras 1987 (13) ECR 585 (CEGAT
SRB)).
Q.6 What are the applicable rules regarding import of
commercial goods as part of baggage?
Commercial goods which can be freely imported as normal
cargo either by air or sea can be brought as part of a passenger’s baggage.
However, if any restrictions and prohibitions have been specified in import
policy of goods, they would be applicable, irrespective of whether the items
are brought by air, sea or baggage. As regards rate of duty, such commercial
imports would be assessed to duty at the baggage rate and not under their
respective headings (Ministry of Finance No. 495/10/1992-96-Cus/VI dt.
7-7-1992).
Q.7 What are the rules for Declaration & Clearance of
Baggage? Describe Green Channel and its use. What are the consequences of mis-declaration
/ non-declaration?
The owner of the baggage is required under section 77 of
the Customs Act, 1962, to make declaration of its contents to the proper
officer of customs, for the purpose of clearing it. The Central Board of Excise & Customs, in
exercise of the powers under section 81, has prescribed a form, known as
Baggage Declaration Form, for declaring the contents of the baggage.
If a passenger has nothing to declare to the Customs and
is carrying dutiable goods within the prescribed duty free allowance, he/she
can simply walk through the exit marked Green Channel with their baggage on
the basis of their Oral Declaration/Declaration on their Disembarkation
Card, without any other question being asked by Customs.
Non-declaration, mis-declaration and concealment of
imported goods is an offence under the Customs Act, which may result in
confiscation of goods imported, fines, penalties and even prosecution. In
case of Non-declaration, the passenger cannot subsequently claim the benefit
of temporary detention of the goods as available u/s 80 as described in the
relevant provisions of the Customs Act, 1962 hereinafter. Normally goods are
detained for purposes of nonpayment of duty, shortage of exchange etc.
Chapter 2
LEGAL FRAMEWORK
Q.8 What is the legal framework relating to baggage?
Explain the relevant provisions of the Customs Act, 1962
Sections 77 to 81 of the Customs Act, 1962 contains
provisions applicable to baggage of passengers. These are:
-
As per section 77, the owner of baggage is required
to make a full declaration of its contents to the proper officer for the
purpose of clearing it. Thus onus is cast on the passenger to make a full
and true declaration. Any dutiable or prohibited goods which are not
declared or are in excess of those included in the declaration can be
confiscated by the Customs authorities under section 111 of the Customs
Act.
-
Section 78 deals with determination of rate of duty
and tariff valuation. It provides that the rate and valuation in force on
the date on which a declaration is made in respect of such baggage shall
be the applicable rate. The general rate of duty for items imported in
excess of the permissible free allowance is 35%
ad valorem + 3%
education cess i.e. an effective rate of 36.05%.
Section 79 provides for bona fide baggage to be
exempted from duty as per rules that the Central Govt. is empowered to
make for the purpose. Such rules may specify, inter alia, the minimum
period for which article has been used by passenger, maximum value of any
individual article and maximum total value of all articles which may be
passed free of duty.
Section 80 deals with temporary detention of
baggage. It is applicable, at the request of the
passenger, either to an article which is dutiable
or an article whose import is prohibited provided a true declaration
has been made by the passenger under section 77. The passenger can
request for temporary detention of the article until it is returned
to him on his leaving India. If for any reason the passenger is not
able to collect the article at the time of his leaving India, the
article may be returned to him through any other passenger
authorized by him and leaving India or as cargo consigned in his
name. The following are some examples of situations where a
passenger may decide to keep his articles in custody of Customs:
-
He does not have sufficient money or
foreign currency to pay duty at that moment.
-
He does not want to take the article into
India but intends to return with it when leaving India.
-
He disputes the valuation/duty as
determined by the Customs officer and wishes to appeal to higher
authorities against the valuation/duty.
-
The articles are prohibited goods and he
has declared them to the Customs officer. It should be noted
that all prohibited goods cannot be kept in safe custody in this
manner as banned items such as narcotics, pornographic items,
etc. are liable to seizure and confiscation.
-
Section 81 empowers the Board to make
regulations providing for (i) the manner of declaring contents
of any baggage, (ii) the custody, examination, assessment to
duty and clearance of baggage and (iii) the transit or
transshipment of baggage from one customs station to another or
to a place outside India
Chapter 3
DEFINITIONS
Q.9 Kindly explain the definitions of important terms
used in the Custom Baggage Rules, 1998
Relevant definitions under the Baggage Rules, 1998
as amended from time-to-time are as under:
Section 2(ii): "resident" means a person holding a
valid passport issued under the Passports Act, 1967 (15 of 1967) and
normally residing in India;
Section 2(iii): "tourist" means a person not
normally resident in India, who enters India for a stay of not more
than six months in the course of any twelve months period for
legitimate non-immigrant purposes, such as touring, recreation,
sports, health, family reasons, study, religious pilgrimage or
business;
Section 2(iv): "family" includes all persons who
are residing in the same house and form part of the same domestic
establishment;
Section 2(v): "professional equipment" means such
portable equipments, instruments, apparatus and appliances as are
required in his profession, by a carpenter, a plumber, a welder, a
mason, and the like and shall not include items of common use such as
cameras, cassette recorders, dictaphones, personal computers,
typewriters, and other similar articles.
Chapter 4
BAGGAGE RULES APPLICABLE TO DIFFERENT CATEGORIES OF PASSENGERS
Q.10 What are the different categories of in-bound
passengers?
Baggage rules are applicable to all categories of
passengers having different purposes like (i) business, (ii) tourism and
(iii) Transfer of Residence and whether Indian Resident or not. Under these
rules, duty free allowances are provided to different categories of
passengers depending upon the purpose, duration of travel/stay at the
destination, age, and/or place from where they are coming.
The following chart gives an overview of the different
categories of in-bound passengers and the applicable Question No. s under
which the relevant duty free allowances are listed:

Q.11 What are the duty free allowances for in-bound Indian
residents and foreigners residing in India?
As referred in important definitions earlier, a Resident
means a person holding a valid passport issued under the Passports Act, 1967
and normally residing in India. Duty free clearances are available to
returning Residents as well as to returning Foreigners who are residing in
India under Rules 3 and 4 of the Baggage Rules, 1998. Details of these
allowances are as under:
-
Passengers coming from countries other than Nepal,
Bhutan, Myanmar and China:
Duty free allowance for bona fide baggage consisting of
|
For passengers of age
|
|
10 years and above
|
Below 10 years
|
(i) Used personal effects, excluding Free Free jewellery, required for
satisfying daily necessities of life
|
|
|
(ii) Articles other than those mentioned in Annex. I (given below) if
carried in person or in the accompanied baggage of the passenger
|
|
|
(a) if stay abroad for more than three days |
Valued up to
25,000/-
|
Valued up to
6,000/-
|
(b) If stay abroad up to three days |
Valued up to
12,000/- |
Valued up to
3,000/-
|
-
Passengers coming from Nepal, Bhutan, Myanmar and
China OTHER than by land route:
Duty free allowance for bona fide baggage consisting of
|
For passengers of age
|
|
10 years and above
|
Below 10 years
|
(i) Used personal effects, excluding jewellery, required for
satisfying daily necessities of life
|
Free |
Free |
(ii) Articles other than those
mentioned
in Annex I (given below) if carried
in person or in the accompanied
baggage of the passenger |
|
|
(a) if stay abroad for more than three
days |
Valued up to
6,000/- |
Valued up to
1,500/- |
(b) If stay abroad up to three days |
Nil
|
Nil |
-
Passengers coming from Nepal, Bhutan, Myanmar and
China BY land route:
Duty free allowance for
bona
fide baggage consisting of
|
For passengers of age |
|
10 years and above |
Below 10 years
|
(i) Used personal
effects, excluding jewellery, required for
satisfying daily necessities of life.
|
Free |
Free |
(ii) Articles other
than those mentioned in Annex I (given below) if carried in person or in
the accompanied baggage of the passenger |
Nil
|
Nil
|
Notes:
-
Used personal effects, excluding jewellery are those
that are required for satisfying daily necessities of life. It has not been
defined in the Baggage Rules and the Customs officer exercises his judgment
in deciding the nature of the articles. The following are illustrative
examples: used clothes such as shirts, trousers, jeans, frocks, etc. and
other items of personal wear; used toiletries & cosmetics; used footwear,
used bedding, shaving kits, spectacles, hearing aid, etc. However, it should
be noted that electronic items, household durables or ‘white goods’ and
furniture cannot be classified as personal effects.
-
Free allowance cannot be pooled with the free
allowance of any other passenger such as members of family or group travelling together. Each passenger is considered to be travelling
separately and his duty is assessed on an individual basis and not on the
basis of a group or a family.
-
Goods over and above the free allowances shall be
chargeable to customs duty @ 35% + Education cess of 3% i.e. at effective
rate of 36.05%
-
Annexure 1 (referred in the tables above) refers to
articles that are not eligible for duty free allowance in excess of the
limits specified under it. Articles specified therein are as follows:
-
Fire arms
-
Cartridges of fire arms exceeding 50
-
Cigarettes exceeding 200 or cigars exceeding 50 or
tobacco exceeding 250 gms
-
Alcoholic liquor or wines in excess of 2 litres
-
Gold or silver, in any form, other than ornaments
-
One laptop computer (notebook computer) over and above
the said free allowances mentioned above is also allowed duty free if
imported by any passenger of age 18 years and above.
-
In case the value of one item exceeds the duty free
allowance, the duty shall be calculated only on the excess of such amount.
-
Annexure IV specifies the Customs stations for those
passengers who enter India by Land route as mentioned in the tables above.
These are:
Amritsar
(i) Amritsar Railway Station
(ii) Attari Road
(iii) Attari Railway Station
(iv) Khalra
Vadodara
(v) Assara Naka
(vi) Khavda Naka
(vii) Lakhpat
(viii) Santalpur Naka
(ix) Suigam Naka
Delhi
(x) Delhi Railway Station
Ferozpur District
(xi) Hussainiwala
Jodhpur Division
(xii) Barmer Railway Station
(xiii) Munabao Railway Station
Baramullah District
(xiv) Adoosa
Poonch District
(xv) Chakan-da-bagh
Q.12 What are the duty free allowances for Indian
professionals returning to India?
An Indian passenger who was engaged in his profession
abroad is allowed, on his return to India, additional duty free allowance on
his baggage under Rule 5 of the Baggage Rules, 1998 to the extent as
mentioned below. These allowances are in addition to the allowances
available to in-bound residents under Rules 3 & 4 covered earlier under Q.11
(a) |
Indian passenger returning after at least 3 months
|
(i) Used household articles (such as linen, utensils,
tableware, kitchen, appliances and an iron) up to an aggregate value of
12000/-
(i) Professional equipment up to a value of
20,000/-
|
(b)
|
Indian passenger returning after at least 6 months
|
(i) Used household articles (such as linen, utensils,
tableware, kitchen, appliances and an iron) up to an aggregate value of
12,000/-
(ii) Professional equipment up to a value of
40,000/-
|
(c) |
Indian passenger returning after a stay of a minimum of
365 days during the preceding two years on termination of his work and who has
not availed this concession in the preceding three years
|
Used household articles and personal effects (which have been
in the possession and use abroad of the passenger or his family for at least six
months) and which are not mentioned in Annex. I, Annex. II & Annex. III up to an
aggregate value of 75,000/-
|
This concession is not available to passengers who were
merely on training abroad. However, those Govt. officials who are deputed on
training abroad are entitled to this concession.
In case of professionals returning on termination of their work as per Para
(c) above, concession up to 75,000 is available on used household
articles and personal effects which have been in possession and used abroad by
the passenger/his family for at least 6 months provided they are not covered in
Annexures I, II & III. Unutilized portion, if any, of 75,000 may be available for importing
items under Annexure II or Annexure III.
Articles listed under Annexure III are allowed duty free
for one unit each and articles listed at Annexure II are allowed to be
imported at a concessional rate of duty of 15.45% for one unit each, within
the above-mentioned value ceiling.
Annexure I (mentioned in the table above) refers to articles
that are not eligible for duty free allowance in excess of the limits specified
under it. Articles specified therein are as follows:
-
Fire arms
-
Cartridges of fire arms exceeding 50
-
Cigarettes exceeding 200 or cigars exceeding 50 or
tobacco exceeding 250 gms
-
Alcoholic liquor or wines in excess of 2 litres
-
Gold or silver, in any form, other than ornaments
Annexure II (mentioned in the table above) specifying
articles on which concessional rate of duty of 15.45% is available for one unit
each is as under:
-
Colour Television or Monochrome Television
-
Digital Video Disc Player
-
Video Home Theatre System
-
Dish Washer
-
Music System
-
Air Conditioner
-
Domestic refrigerators of capacity above 300 litres
or its equivalent
-
Deep Freezer
-
Microwave Oven
-
Video camera or the combination of any such video
camera with one or more of the following goods, namely:–
a. Television Receiver
b. Sound recording or reproducing apparatus
c. Video reproducing apparatus
-
Word Processing Machine
-
Fax Machine
-
Portable Photocopying Machine
-
Vessel
-
Aircraft
-
Cinematographic films of 35 mm and above
-
Gold or silver, in any form, other than ornaments
Annexure III (mentioned in the table above) specifying
articles on which duty free concession is available for one unit each is as
under:
-
VCR or VCP or VTR or VCDP
-
Washing Machine
-
Electrical or LPG Cooking Range
-
Personal Computer (Desktop Computer)
-
Lap Top Computer (Notebook Computer)
-
Domestic Refrigerator up to 300 ltr. capacity or its
equivalent
Q.13 What are duty free allowances for tourists visiting
India?
A tourist arriving in India is allowed to clear goods free of duty to the
extent as mentioned in Rule 7 of the Baggage Rules, 1998 if such goods/articles
form part of his/ her
bona
fide baggage. Provisions distinguish between tourist of Indian origin and
Foreign origin; Foreign origin is further divided into those from Nepal, Bhutan
and Pakistan and those of other than these three countries. Tourist of Indian
origin or Foreign origin returning from or coming from Pakistan by land route is
distinguished separately. Duty free allowances for a tourist are as under:
|
Articles allowed free of duty
|
I
|
Tourists of Indian origin other than those coming from
Pakistan by land route
|
(i) Used personal effects and travel souvenirs, if –
(a) These goods are for personal use of the tourist, and
(b) These goods, other than those consumed during the
stay in India, are re-exported when the tourist leaves India for a foreign
destination
(ii) duty free allowances applicable to Indian Residents as
covered at Q.11 above
|
II |
Tourists of foreign origin other than those of Nepalese
origin coming from Nepal or of Bhutanese origin coming from Bhutan or of
Pakistani origin coming from Pakistan
|
(i) Used personal effects and travel souvenirs, if
(a) These goods are for personal use of the tourist, and
(b) These goods, other than those consumed during the
stay in India, are re-exported when the tourist leaves India for a foreign
destination
(ii) Articles up to a value of
8,000/- for making gifts
|
III
|
Tourists of Nepalese origin coming from Nepal or of
Bhutanese origin coming from Bhutan
|
No free allowance. |
IV
|
Tourists of Pakistani origin or foreign tourists coming
from Pakistan or tourists of Indian origin coming from Pakistan by land route
|
(i) Used personal effects and travel souvenirs, if
(a) These goods are for personal use of the tourist, and
(b) These goods, other than those consumed during the
stay in India, are re-exported when the tourist leaves India for a foreign
destination.
(ii) Articles up to a value of
6,000 for making gifts
|
The above may be depicted by way of chart as under:

Q.14 What is transfer of residence? What are duty free
allowances for persons transferring residence?
Transfer of Residence (TR) is a facility provided to
every person who is coming to India for or by way of transfer of his / her
residence after a stay abroad of at least two years. Such person could be
either (i) an Indian, (ii) a Foreign passport holder, (iii) a minor, or (iv)
a student. This facility allows the person and his/her family to import
personal and household articles free of duty and certain other listed items
on payment of a concessional rate of duty.
Such a person who is transferring his residence to India
is allowed additional duty free allowance on his baggage
under Rule 8 of the Baggage Rules, 1998 to the extent and
subject to the conditions as mentioned below. These allowances are in
addition to the allowances available to in-bound residents under Rules 3 & 4
covered earlier under Q. 11
Articles allowed free of duty |
Conditions |
Relaxation that may be considered
|
(a) Used personal and household articles other than those
listed at Annexure I or Annexure II, but including the articles listed at
Annexure III, and
Jewellery up to
10000 by a gentleman passenger or
20000 by a lady passenger
Import of Articles listed at Annexure II will be subjected to
concessional rate of duty.
|
(1) Minimum stay of two years abroad, immediately
preceding the date of his arrival on transfer of residence
(2) Total stay in India on short visits during the 2
preceding years should not exceed 6 months, and
(3) Passenger has not availed this concession in the
preceding three years
|
(a) For condition (1): Shortfall of up to 2 months in stay
abroad can be condoned by Deputy/Assistant Commissioner of Customs if the
early return is on account of
(i) terminal leave or vacation being availed of by the
passenger, or
(ii) any other special circumstances
(b) For condition (2): Commissioner of Customs may condone
short visits in excess of 6 months in deserving cases
(c) For condition (3): No relaxation
|
(b) Jewellery taken out earlier by the passenger or by a
member of his family from India
|
Satisfaction of the Assistant Commissioner of Customs
regarding the jewellery having been taken out earlier from India
|
|
If both husband and wife working abroad are transferring
their residence to India, both may avail the concessions available on
individual basis on satisfaction of conditions. However, benefit will not be
available to each one of them when they were having common establishment and
staying in the same house abroad.
Q.15 What is the rate of duty applicable on transfer of
residence?
Duty free import as baggage is allowed under TR of used
personal articles and household effects including items listed at Annexure I
(up to limits specified therein) and Annexure III. In addition to that, the
usual allowances applicable to returning Indian residents or foreigners
residing in India under Rules 3 & 4 of the Baggage Rules (as per Q. 11
above) are also available to passengers availing TR. However, articles
listed in Annexure II of the Baggage Rules are dutiable and do not comprise
articles allowed duty free as household effects. Clearance of such items
listed in Annexure-II, whether old or new, is allowed at a concessional rate
of duty of 15% ad
valorem + 3% educational cess.
Annexure I (mentioned above) refers to articles that are not
eligible for duty free allowance in excess of the limits specified under it.
Articles specified therein are as follows:
-
Fire arms
-
Cartridges of fire arms exceeding 50
-
Cigarettes exceeding 200 or cigars exceeding 50 or
tobacco exceeding 250 gms
-
Alcoholic liquor or wines in excess of 2 litres
-
Gold or silver, in any form, other than ornaments
Annexure II (mentioned above) specifying articles on which
concessional rate of duty of 15.45% is available for one unit each is as under:
-
Colour Television or Monochrome Television.
Digital Video Disc Player.
Video Home Theatre System.
Dish Washer.
Music System.
Air Conditioner.
Domestic refrigerators of capacity above 300 litres
or its equivalent.
Deep Freezer.
Microwave Oven.
Video camera or the combination of any such video
camera with one or more of the following goods, namely:–
a. Television Receiver;
b. Sound recording or reproducing apparatus;
c. Video reproducing apparatus.
Word Processing Machine.
Fax Machine.
Portable Photocopying Machine.
Vessel.
Aircraft.
Cinematographic films of 35 mm and above.
Gold or silver, in any form, other than ornaments.
Conditions for Annexure II items
-
Passenger to affirm by a declaration that such goods
have been in his/her possession abroad or the goods are purchased from the
duty-free shop by him/her at the time of his/her arrival but before
clearance from Customs.
-
Only one unit of each item per family is allowed and
total value of these items along with items listed at Annexure III of the
Baggage Rules should not exceed
5 lakhs.
Unaccompanied goods must be shipped or despatched
and arrive in India within the prescribed time limits under the Baggage
Rules, 1998 (within two months before arrival and within after one month of
arrival).
Only one unit of each item will be allowed under TR.
If more than one unit is brought, the excess unit(s) will be classified as
general baggage in which case the usual rate of baggage duty of 36.05%
(after deduction of the free allowance from the total value of all such
items) will be applicable. Similarly, if the total value of the above
Annexure II items and Annexure III items described before exceed
5 lakhs, then the item(s) due to
which the value is exceeding the ceiling amount must be brought as a general
baggage item.
Annex. III (mentioned above) specifying articles which are
allowed free of duty under TR is as under:
-
VCR or VCP or VTR or VCDP
-
Washing Machine
-
Electrical or LPG Cooking Range
-
Personal Computer (Desktop Computer)
-
Lap Top Computer (Notebook Computer)
-
Domestic Refrigerator up to 300 ltr. capacity or its
equivalent.
Conditions for Annexure III items
-
Passenger to affirm by a declaration that such goods
have been in his/her possession abroad or the goods are purchased from the
duty-free shop by him/her at the time of his/her arrival but before
clearance from Customs.
-
Only one unit of each item per family is allowed and total value of these
items along with items listed at Annexure II of the Baggage Rules should not
exceed
5 lakhs.
Unaccompanied goods must be shipped or despatched
and arrive in India within the prescribed time limits under the Baggage
Rules, 1998 (within two months before arrival and within after one month of
arrival).
Only one unit of each item will be allowed under TR.
If more than one unit is brought, the excess unit(s) will be classified as
general baggage in which case the usual rate of baggage duty of 36.05%
(after deduction of the free allowance from the total value of all such
items) will be applicable. Similarly, if the total value of the above
Annexure III items and Annexure II items described before exceed
5 lakhs, then the item(s) due to
which the value is exceeding the ceiling amount must be brought as a general
baggage item.
Q.16 Whether Foreign nationals, other persons and persons travelling together are eligible to avail benefits under transfer of
residence?
-
The concessions under TR are available to Foreign
Nationals also.
-
Indian Diplomat returning to India before two years
stay abroad can avail the concession if he has returned for official
reasons, subject to certificate from Ministry of External Affairs to this
effect.
-
Minors are eligible for this concession.
-
TR concession for family members staying together is
not available in case of each member unless it can be established that
persons are working / staying separately.
-
Persons coming from Nepal & Bhutan do not require
passport & visa. Such passengers travelling from Nepal or Bhutan for bona fide transfer of
residence can claim TR concession provided certificates about their bona fide transfer is
issued by the authorized officers in the embassy.
Chapter 5
APPLICABILITY OF BAGGAGE RULES TO SPECIFIC ITEMS AS BAGGAGE
Q.17 Can one import Commercial Samples as baggage?
It is possible for a commercial traveller and businessmen
to import such samples as personal baggage or import by post or air free of
custom duty if (a) these goods are marked as samples, not exceeding
300,000 in value and 15 in numbers
within a period of last 12 months, (b) the importer makes certain
declaration and undertaking and (c) produces his Import Export Code Number.
In case of import of samples relating to gem and
jewellery industry imported by exporters of gem and jewellery, the exemption
shall be 300,000 or 0.25% of average value
of three immediately preceding years’ export, whichever is lower.
Exemption granted shall not exceed
10,000 in case import is by
courier/post/in aircraft.
Q.18 What is the value of gifts one can import, duty free,
through post or air freight?
One can import bona fide gifts by post or
as air freight, up to 10,000 without payment of duty.
Q.19 What quantity of Alcoholic Drinks/Cigarettes can be
imported as baggage duty free? What is the applicable Customs duty for imports
in excess of such duty free quantity?
Following quantities of Alcoholic drinks and Tobacco products are allowed for
import within the duty free allowances admissible to various categories of
incoming passengers:
-
Alcoholic liquors or Wines up to 2 litres
-
200 Cigarettes or 50 Cigars or 250 gms tobacco.
The rate of duty applicable on these products over and
above the above-mentioned free allowance is as under:
-
Cigarettes: Basic Custom Duty ("BCD") @100% +
education cess @ 3%
-
Whisky: BCD @150% + Additional Custom Duty ("ACD")
@ 4% + education cess @3%
-
Wines and Beer: BCD @100% + ACD Nil + education
cess @ 3%
Q.20 How much jewellery can a person returning to India
Import free of duty?
A non-tourist passenger of Indian origin who has been
residing abroad for over one year is allowed to bring jewellery, free of
duty in his bona fide
baggage up to an aggregate value of
10,000/- (in the case of a male
passenger) or 20,000/- (in the case of a
lady passenger). No distinction has been made between adult and minor
passengers.
If a person has taken jewellery out of India at the time
of their departure, its import would be allowed free of duty on production
of Jewellery Export Certificate and provided it is proved to the
satisfaction of Assistant Commissioner of Customs.
Q.21 Who can import Gold and Silver as baggage? What is the
maximum quantity that can be imported? What is the rate of duty?
Gold and silver can be imported as baggage by:
-
any passenger of Indian Origin (even if he is a
foreign national except Pakistani/Bangladeshi national), or
-
a passenger holding a valid passport, issued under
the Passport Act, 1967,
who is coming to India after a period of not less than
six months of stay abroad; and short visits, if any, made by the passenger
during the aforesaid period of six months shall be ignored if the total
duration of stay on such visits does not exceed thirty days.
Other conditions are:
-
The duty shall be paid in convertible foreign
currency.
-
The weight of gold (including ornaments) should not
exceed 10 kgs. per passenger. The weight of silver (including ornaments)
should not exceed the quantity of 100 kgs. per passenger.
-
The passenger should not have brought gold or other
ornaments during any of his visits (short visits) in the last six months
i.e. he has not availed of the exemption under this scheme, at the time of
short visits.
-
Ornaments studded with stones and pearls are not
allowed to be imported.
-
The passenger can either bring the gold or silver
himself at the time of arrival or import the same within fifteen days of his
arrival in India as unaccompanied baggage.
-
The passenger can also obtain the permitted quantity of gold or silver
from Customs bonded warehouse of State Bank of India and Metals and Minerals
Trading Corporation subject to conditions (i) and (ii) above. He is required to
file a declaration in the prescribed Form before the Customs Officer at the time
of arrival in India stating his intention to obtain the gold from the Customs
bonded warehouse and pay the duty before clearance.
S.No.
|
Description of Goods |
Rate
|
1
|
Gold bars, other than tola bars, bearing manufacturers or
refiners engraved serial number and weight expressed in
metric units and gold coins |
`
300 per 10 gms.+ 3% Education Cess |
2
|
Gold in any form other than at Sl. No. 1 above including tola
bars and ornaments, but excluding ornaments studded with
stones or pearls
|
`
750 per 10 gms. + 3% Education Cess
|
3
|
Silver
|
`
1,500 per kg. + 3%
Education Cess
|
Note: Only such jewellery, which is in addition to the
jewellery otherwise allowed without payment of duty, is liable to payment of
duty under the above-mentioned scheme of import of gold.
The Scheme for import of Gold & Silver does not provide for
establishing source of such investments for the purpose of import. Therefore
concerned custom officer cannot make such enquiry. However it is pertinent to
note that Import duty is payable only in convertible foreign currency. Therefore
currency purchase endorsement on passport may be enquired upon, except under
certain imports where duty payment is permitted in Rupees.
Q.22 What are the rules applicable to import of Foreign
Exchange/Currency and to import of Indian Currency?
Any person can bring into India from a place outside
India foreign exchange without any limit. However, declaration of foreign
exchange/currency is required to be made in the prescribed Currency
Declaration Form in the following cases:–
i. Where the value of foreign currency notes exceeds US
$ 5,000/- or equivalent
ii. Where the aggregate value of foreign exchange (in
the form of currency notes, bank notes, traveller cheques etc.) exceeds US
$ 10,000/- or its equivalent
Import of Indian Currency is prohibited. However, in the
case of passengers normally resident in India who are returning from a visit
abroad, import of Indian Currency up to
7,500 is allowed.
Q.23 Who can import Fire Arms as baggage? What are the
conditions under which Fire Arms can be imported?
Import of firearms is strictly prohibited. Import of
cartridges in excess of 50 is also prohibited.
However, in the case of persons transferring their
residence (as per conditions specified in the rules) to India for a minimum
period of one year, one firearm of permissible bore can be allowed to be
imported subject to the conditions that:
i. the same was in possession and use abroad by the
passenger for a minimum period of one year and also subject to the
condition that such firearm, after clearance, shall not be sold, loaned,
transferred or otherwise parted with, for consideration or otherwise,
during the lifetime of such person;
ii. the passenger has a valid arms licence from the
local (Indian) authorities;
iii. the customs and other duties as applicable shall
be paid. Presently, customs duty payable on import of firearms is 50% ad valorem (i.e.
based on value) as per Notification No. 106/2008 dt. 22-9-2008
Q.24 Can pet animals be imported? If so, what are the
conditions?
Domestic pets like dogs, cats, birds, etc. are permitted to be imported. A
passenger may import pets (dog and cat only) up to two numbers only at one time
subject to production of required health certificate from country of origin and
examination of the said pets by the concerned quarantine officer. Imports of
pets over and above this quantity shall be allowed only against an Import
sanitary
permit issued by the department of animal husbandry and
dairying or against an import licence issued by the DGFT.
Q.25 How does one deal with Baggage of Deceased Person?
Used,
bona fide personal and household effects belonging to a deceased
person are allowed to be imported free of duty subject to the condition that
a Certificate from the concerned Indian mission (Embassy/High Commission) is
produced at the time of clearance regarding the ownership of the goods by
the deceased person.
Q.26 What is Unaccompanied Baggage? Are duty free
concessions available for Unaccompanied Baggage?
Articles of baggage which could not be brought by a
passenger along with him but which are sent through cargo is treated as
unaccompanied baggage. No free allowance is admissible in case of
unaccompanied baggage which is chargeable to Customs duty @ 35% ad valorem
+ 3%
Education Cess. Only used personal effects can be imported free of duty. The
following important aspects regarding unaccompanied baggage should be noted:
-
Provisions of Baggage Rules are also extended to
unaccompanied baggage except where they have been specifically excluded.
-
The unaccompanied baggage should be in the
possession abroad of the passenger and shall be dispatched within one
month of his arrival in India or within such further period as the
Deputy/Assistant Commissioner of Customs may allow.
-
The unaccompanied baggage may land in India up to
two months before the arrival of the passenger or within such period, not
exceeding one year as the Deputy/Assistant Commissioner of Customs may
allow, for reasons to be recorded, if he is satisfied that the passenger
was prevented from arriving in India within the period of two months due
to circumstances beyond his control, such as sudden illness of the
passenger or a member of his family, or natural calamities or disturbed
conditions or disruption of the transport or travel arrangements in the
country or countries concerned on any other reasons, which necessitated a
change in the travel schedule of the passenger.
Q.27 Who can import Passenger Cars? What is the applicable
rate of duty?
Passenger Cars/Jeeps/Multi-utility vehicles, etc. can be
imported by passengers coming to India only on Transfer of Residence.
The following rates of Duty are applicable for import of
motor cars and other motor vehicles principally designed for the transport
of persons including station wagons and racing cars. Since motor vehicles
are excluded from the definition of Baggage, duties are collected at the
Tariff rate taking into consideration exemption notifications if any.
Customs duty for vehicles which had been registered
abroad
Vehicle |
Basic Duty |
Addl. Duty |
Total Duty
|
Cars |
105% |
24.72% #
|
160.35% #
|
Motor cycles/scooters/ moped |
105% |
16.48% #
|
142.95% #
|
Customs duty for vehicles which had not been registered
abroad
Vehicle Basic Duty Addl. Duty Total Duty
Vehicle |
Basic Duty |
Addl. Duty |
Total Duty
|
Cars |
60% ** |
24.72% # |
102.54% #
|
Motor cycles/scooters/ moped |
60% ** |
16.48% # |
88.96% # |
** if brought in Completely Knocked Down (CKD)
condition, Basic Duty will be 20%.
# Inclusive of Education Cess of 3% imposed as per
Finance Act, 2008.
These imports shall be subject to the condition that the
vehicle should have right hand steering and controls (applicable on vehicles
other than 2 and 3 wheelers)
Value of these vehicles for the purpose of levy of
customs duty is CIF value, where C stands for the cost of the goods, I is
the insurance and F is the freight. Cost in the case of new vehicle is the
transaction value between the seller and the buyer. However, in the case of
old and used vehicles, cost is arrived at by taking value of the new vehicle
in its year of manufacture and then allowing depreciation at following
rates:
-
For every quarter during 1st year – 4%
-
For every quarter during 2nd year – 3%
-
For every quarter during 3rd year – 2.5%
-
For every quarter during 4th year – 2% subject to
a max. depreciation of 70% and thereafter
Q.28 In what manner do baggage rules apply to Airline Crew?
Can members of crew import laptop into India?
As per Rule 10 of the Baggage Rules, the members of the
crew engaged in foreign-going vessels are not considered as tourists or
returning Indians and therefore duty free allowance available in various
rules is not available to them every time when they return to India.
Crew members are required to submit the correct
declaration before Custom authorities with respect to currency, gold
ornaments and electronic goods, etc. in their possession on arrival as well
as departure.
Crew members are allowed to bring items like chocolates,
cheese, cosmetics and other petty gift items for their personal or family
use up to a value of
600 only at the returning of the
aircraft from foreign journey. However, a crew member on final pay off or at
the termination of his engagement with the Airline shall be eligible for
allowances as a common passenger.
The permission given to passengers of age 18 years or
more to bring one laptop without payment of duty on arrival into India is
not available to members of crew arriving in India.
Q.29 What is the General Rate of Customs Duty other than
specific rates on specified articles mentioned above? What are the different
types of Customs Duty?
i. Generally, items imported as baggage are subjected to
a uniform rate of duty for ease of assessment.
ii. The general rate of duty for items imported in excess
of the permissible free allowance is 35% ad valorem
+
educational cess @ 3% i.e. to say that effective rate of duty is 36.05%.
iii. The rate of duty applicable to items in Annexure II
imported by passengers transferring their residence or returning to India
after a stay of 365 days abroad in the preceding two years is 15% +
educational cess @ 3%
Apart from basic customs duty, other types of customs
duty are Additional Duty and Special Additional Duty. Customs duty is levied
on imported goods to bring its landed cost in-line with Indian manufactured
goods so as to retain competitiveness of Indian industries. In this sense,
customs duty is similar to excise duty levied on Indian manufactured goods.
Goods brought in as baggage are specifically exempted from Additional Duty
and Special Additional Duty. However, Education Cess @ 3% is levied on the
customs duty charged on the goods brought in as baggage and not on the basic
value of the goods.
Chapter 6
BAGGAGE RULES FOR OUT-BOUND PASSENGERS
Q.30 Are out-going passengers subject to customs clearance?
What articles are prohibited or restricted for export as baggage?
All the passengers leaving India by air are subject to
clearance by Custom Authorities. Only
bona fide baggage is
allowed to be cleared by passengers. There is a procedure prescribed whereby
the passengers leaving India can take the export certificate for the various
high value items as well as jewellery from the Customs authorities. Such an
export certificate comes handy while bringing back the things to India so
that no duty is charged on such goods exported by the passenger.
Other information:
-
Export of most species of wild life and articles
made from wild flora and fauna, such as ivory, musk, reptile skins, furs, shahtoos, etc. is prohibited.
-
Trafficking of narcotic drugs and psychotropic
substances is prohibited.
-
Export of goods purchased against foreign exchange
brought in by foreign passengers are allowed except for prohibited goods.
-
Carrying of Indian currency notes in the
denomination of
500 and 1,000 to Nepal is prohibited.
Q.31 What are the requirements for export of gold jewellery
through baggage?
There is no value limit on the export of gold jewellery
by a passenger through the medium of baggage so long as it constitutes the
bona fide baggage of the passenger. A passenger may request the Customs for
issue of an export certificate at the time of his/her departure from India,
in respect of jewellery carried by him/her to facilitate its re-import
subsequently.
Commercial export of gold jewellery through the courier
mode is permitted subject to observance of prescribed procedures.
Q.32 Is export of foreign currency & Indian currency
permissible and if so to what extent?
While leaving India, tourists are allowed to take with
them foreign currency not exceeding an amount brought in by them at the time
of their arrival in India. As no declaration is required to be made for
bringing in foreign exchange/currency not exceeding equivalent of U.S. $
10,000, generally tourists can take out of India with them at the time of
their departure foreign exchange/currency not exceeding the above amount.
The export of foreign currency is otherwise prohibited.
Export of Indian currency is strictly prohibited. However
Indian residents when they go abroad are allowed to take with them Indian
currency not exceeding 7,500.
Chapter 7
RESTRICTED AND PROHIBITED GOODS
Q.33 Which are the restricted and prohibited goods for
import and/or export?
Certain goods are prohibited (banned) or restricted
(subject to certain conditions) for import and/or export. These are goods of
social, health, environment, wildlife and security concerns. Export or
import in prohibited and restricted goods commonly leads to arrest. Some
common examples of such goods are:
Prohibited Goods
-
Narcotic Drugs and Psychotropic substances
-
Pornographic material
-
Counterfeit and pirated goods and good infringing
any of the legally enforceable intellectual property rights
-
Antiquities
Restricted Goods
-
Firearms and ammunition
-
Live birds and animals including pets
-
Plants and their produce e.g. fruits, seeds
-
Endangered species of plants and animals, whether
live or dead
-
Any goods for commercial purpose: for profit, gain
or commercial usage
-
Radio transmitters not approved for normal usage
-
Gold and silver, other than ornaments (for import
only)
-
Indian and foreign currency in excess of
prescribed limits:
- foreign currency in form of currency notes in
excess of US$ 5000 or equivalent and foreign currency in the form of
currency notes, bank notes or travelers cheques in excess of US$ 10000
or equivalent is required to be declared on arrival.
- foreign currency in excess of amount legally
obtained or in the case of tourists in excess of the amount declared
on arrival or in excess of the exempted limit of declaration at the
time of departure.
-
Trafficking in Narcotic Drugs like Heroin, Charas,
Cocaine or in Psychotropic substances is a serious offence and is
punishable with imprisonment.
-
Export of most species of wild life and articles
made from flora and fauna such as Ivory, Musk, Reptile skins, Furs, Shahtoosh, etc. is prohibited. For any clarifications passenger should
approach the Regional Deputy Director (Wildlife Preservation) Govt. of
India or the Chief Wildlife Wardens of State Governments posted at Kolkata,
Delhi, Mumbai and Chennai.
Chapter 8
VIOLATIONS AND PENAL PROVISIONS
Q.34 Describe the different types of violations of customs
laws and the penal provisions that would be attracted?
The Indian Customs Act empowers imposition of heavy
penalties for those passengers who:
-
attempt to walk through the Green Channel with
prohibited, restricted or dutiable goods;
mis-declare their goods at the Red Channel;
attempt to export prohibited or restricted goods;
abet the commission of any of the above offences.
The penal provisions relating to searches, seizure and
arrest are covered in sections 100 to 110 of Chapter XIII of the Customs
Act, 1962. Penal provisions relating to confiscation of goods and imposition
of penalties are covered in sections 111 to 127 of Chapter XIV of the
Customs Act, 1962. Accordingly, penal provisions may lead to:
-
absolute confiscation of goods, or
-
imposition of heavy fine in respect of the
concerned goods if these are released;
-
imposition of penalty on individual or concerned
entities up to five times the value of goods or the duty involved
-
arrest and prosecution including invocation of
preventive detention in serious cases.
Chapter 9
REFERENCES
-
A Handbook on FEMA – Taxation by All India Federation
of Tax Practitioners
-
Baggage Rules of India (Sept. 2010 edn.) by P. Veera
Reddy & P. Mamatha
-
http://www.cbec.gov.in/customs/cs-act/formatted-htmls/
cs-reulf.htm
-
http://www.cbec.gov.in/travellers.htm
-
http://www.mumbaicustoms3.gov.in/htmldocs/tr.htm
Chapter 10
SUBJECT INDEX
Particulars |
Section/Notification |
Q. No.
|
Airline crew baggage |
Rule 10
|
Q.28
|
Alcoholic Drinks import
|
|
Q.19
|
Baggage |
|
Q.1
|
Bona fide Baggage
|
S. 79
|
Q.1
|
Carrier
|
|
Q.5
|
Cigarettes import
|
|
Q.19
|
Clearance of Baggage |
|
Q.7
|
Commercial Goods |
|
Q.6
|
Commercial Samples
|
|
Q.17
|
Consumer Goods |
|
Q.3
|
Customs Act, 1962
|
S. 77
to S. 81
|
Q.8
|
Customs Rate of Duty
|
|
Q.29
|
Deceased person’s baggage |
|
Q.25 |
Declaration of Baggage
|
S. 77
|
Q.7
|
Duty
free allowances
|
Rules
3, 4
|
Q.11 |
Family
|
2(iv)
|
Q.9
|
Fire
Arms import
|
|
Q.23 |
Foreign Exchange/Currency export
|
|
Q.32 |
Foreign Exchange/Currency import
|
|
Q.22 |
Foreign Nationals
|
|
Q.16 |
Gifts
/ Souvenirs |
|
Q.2,
Q.18
|
Gold
import
|
|
Q.21 |
Gold jewellery
export
|
|
Q.31 |
Green
Channel
|
|
Q.7 |
Indian Currency export |
|
Q.32 |
Indian Currency import
|
|
Q.22 |
Jewellery
import
|
Rule
6
|
Q.20 |
Laptop import
|
|
Q.11,
Q.28 |
Licence
for import
|
|
Q.4 |
Out-bound passengers |
|
Q.30 |
Passenger car import
|
|
Q.27 |
Passenger categories
|
|
Q.10 |
Pet
animals import
|
|
Q.24 |
Professional Equipment
|
2(v)
|
Q.9 |
Professionals
|
Rules
3, 4, 5
|
Q.12
|
Resident
|
2(ii)
|
Q.9
|
Restricted and prohibited Goods
|
|
Q.33
|
Silver import
|
|
Q.21
|
Tourist
|
2(iii), Rule 7
|
Q.9,
Q.13
|
Transfer of Residence
(TR)
Rules 3 |
4, 8
|
Q.14
|
Unaccompanied baggage
|
|
Q.26 |
Violations and Penal provisions
|
Ss.100 to 127 |
Q.34 |
|