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1 BAGGAGE AND BONA FIDE BAGGAGE. Q.1 What is baggage? What articles are treated asbona fidebaggage 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.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.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.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.15 What is the rate of duty applicable on 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.20 How much jewellery can a person returning to India Import free of duty? 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? 6 BAGGAGE RULES FOR OUT-BOUND PASSENGERS 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 BAGGAGE AND BONA FIDE BAGGAGE Q.1What is baggage? What articles are treated asbona fidebaggage 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 withbona fidebaggage 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 asbona fidebaggage. It should be noted that the question of whether the baggage of a passenger isbona fideor 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.2Are 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.3Can 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 asbona fidebaggage 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 fideand 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.4Please 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 baggagebona fidehousehold 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 notbona fidebaggage 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.5How 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, Madras1987 (13) ECR 585 (CEGATSRB)). Q.6What 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.7What 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. LEGAL FRAMEWORK Q.8What 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:
DEFINITIONS Q.9Kindly 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. BAGGAGE RULES APPLICABLE TO DIFFERENT CATEGORIES OF PASSENGERS Q.10What 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.11What 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:
Notes:
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.12What 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
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:
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:
a. Television Receiver b. Sound recording or reproducing apparatus c. Video reproducing apparatus
Annexure III (mentioned in the table above) specifying articles on which duty free concession is available for one unit each is as under:
Q.13What 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/ herbonafidebaggage. 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:
The above may be depicted by way of chart as under:
Q.14What 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
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.15What 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:
Annexure II (mentioned above) specifying articles on which concessional rate of duty of 15.45% is available for one unit each is as under:
a. Television Receiver; b. Sound recording or reproducing apparatus; c. Video reproducing apparatus.
Conditions for Annexure II items
Annex. III (mentioned above) specifying articles which are allowed free of duty under TR is as under:
Conditions for Annexure III items
Q.16Whether Foreign nationals, other persons and persons travelling together are eligible to avail benefits under transfer of residence?
APPLICABILITY OF BAGGAGE RULES TO SPECIFIC ITEMS AS BAGGAGE Q.17Can 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 exceeding300,000 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 exceed10,000 in case import is by courier/post/in aircraft. Q.18What is the value of gifts one can import, duty free, through post or air freight? One can importbona fidegifts by post or as air freight, up to 10,000 without payment of duty. Q.19What 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:
The rate of duty applicable on these products over and above the above-mentioned free allowance is as under:
Q.20How 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 hisbona fidebaggage up to an aggregate value of10,000/- (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.21Who 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:
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:
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.22What 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 to7,500 is allowed. Q.23Who 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.24Can 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 sanitarypermit issued by the department of animal husbandry and dairying or against an import licence issued by the DGFT. Q.25How does one deal with Baggage of Deceased Person? Used,bona fidepersonal 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.26What 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:
Q.27Who 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
Customs duty for vehicles which had not been registered abroad Vehicle Basic Duty Addl. Duty Total Duty
** 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:
Q.28In 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 of600 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.29What 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. BAGGAGE RULES FOR OUT-BOUND PASSENGERS Q.30Are 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. Onlybona fidebaggage 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:
Q.31What 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.32Is 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. RESTRICTED AND PROHIBITED GOODS Q.33Which 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
Restricted Goods
- 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.
VIOLATIONS AND PENAL PROVISIONS Q.34Describe 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:
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:
REFERENCES
SUBJECT INDEX
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