Customs duty on no value goods

Save Share

This query is : Resolved

Raghunadh K (Querist)

26 November 2010 HI,
We are importing beverages from germany as a part of the deal the supplier is providing fridges worth 2000 EU as complimentary. Now my question will this fridges also attracts Customs duty or not also provide me what can be done to avoid the customs duty for the same. Request you to provide the same. Thank You

ASHOKKUMARSAINI

ASHOKKUMARSAINI (Expert)

30 November 2010 nothing can be done to save duty only get commercial invoice of no value from suppler and mention value for custom purpose only.
For duty free clearance, the value of individual sample should not exceed Rs. 5,000/- and aggregate value should not exceed Rs. 60,000/- per year or 15 units in a year. The prototypes of engineering goods can also be imported even if the value is more than Rs. 5,000/-. Such goods upto Rs. 10,000/- can be imported without payment of duty if the said goods are rendered useless as merchandise by a suitable process. Where the value exceeds Rs. 10,000/-, the said goods are to be re-exported within a period of 9 months or such extended period as Asstt. Commissioner of Customs may allow. High value goods are to be imported by depositing duty with the Customs and giving an undertaking for their re-export within 9 months. The deposited duty is refunded when the machinery is exported back. The following clarification may be necessary on the above guidelines

The value of any item imported during a year should not exceed 15 units of the said item or Rs. 60,000/-. However, if more than one product is being imported into the India the value limit is increased proportionately. Similarly, in case samples are consigned to many consignees by one foreign company, but they are being sent at the same time through some Port/ Airport, it shall not be changed to duty if the limit of Rs. 5,000/- per unit each adhered to. The consignments meant for distribution to different parties in India can also be imported together for convenience of transport, if the packets are clearly marked and addressed to different persons in India. The value of Rs. 5,000/- is the export value of the goods excluding locally refundable taxes like VAT in the country of despatch. In case of free samples of Rs. 5000/-, it does not include freight or courier charges. If it is above Rs. 5000/- freight and insurance charges would be added to calculate the duty payable in India.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now