Gifts and samples

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This query is : Resolved

rachna (Querist)

27 July 2012 Hello! I wanted to know till what extent can a gift and sample go duty-free.

Also, is it necessary that a gift has to be sent by an individual only and a sample is sent only to a company?

Also, is IEC required if I want to order clothes on a regular basis through courier or can I regularly pay the required duty and function without an IEC?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

30 July 2012 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 upto 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:

as per para 2.27 of Hand Book of procedure vol-1,2009-2014 (A) no authorisation shall be required for import of bonafide technical and trade sample of item restricted in drugs.

duty free import of sample up to Rs. 100000 /- for all exporter (Rs. 300000for gems & jewellery sector) shall be allowed as per terms and condition of custom Notification allowed .

regards,

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