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humpty_Dumpty
06-09-2009, 08:53 PM
Hi all,
I am residing in delhi and was interested to import a specific embedded hardware kit which is worth 75$ and being imported from singapore.
The kit consists of an ARM proc based embedded kit + a few wireless modules.

Could someone please post the probably custom duty applicable in my case.
And is the process complicated??

Regards,

Humpty

vikas
06-10-2009, 03:12 AM
Depends how you get it. Govt Postal services there is no duty , but they are unreliable and slow.

DHL,UPS etc duty is based on declared costs.

Maybe 30 - 40 % , cant really say. The DHL / UPS person will collect the duty from your house , you dont need to go anywhere.

humpty_Dumpty
06-10-2009, 09:43 AM
But is there someone who has first hand experience in such a case?
As I am ordering this kit for my personal use and 30-40% is a big variable for me.

I was expecting someone to give me the exact duty and the overhead expenses for the same and also ways to minimize it.


Regards,

Humpty

PS: I can also consider going to the customs office in New Delhi if there might be significant cost savings and ACCEPTABLE babudom from the Customs office?

vikas
06-10-2009, 11:06 AM
There is no exact figure , Ive ordered many times and i only come to know about the duty when the Courier guy calls up.

Just order and see , sometimes you get around it by having the seller mark your goods as samples.

pranavtrehun007
06-10-2009, 11:46 PM
i too want to order stuff but duty is what i am concerned about. if someone can share their experiences that would be great. i also heard from someone that only companies are allowed to import and individuals cannot import.... what does that mean?

pranavtrehun007
06-10-2009, 11:52 PM
[quote=
PS: I can also consider going to the customs office in New Delhi if there might be significant cost savings and ACCEPTABLE babudom from the Customs office?[/quote]

jus remember.... Pandey nahi Pandey JI kehna... :wink:

humpty_Dumpty
06-11-2009, 10:03 AM
Pandi Ji nahi PAndey Sir Ji :lol: .
Yeah being a student of a Govt college I am well aware of the antics of sarkari babus.

I had just one more question.

How can I be sure that the duty being applied to the goods is correct . If there can be less duty applied (as pointed out by Vikas) there also can be excess of it. Do the courier companies confirm with their customer ,regarding under what chapter of the customs law(or whatever) are the goods being listed.


Thx a lot for you help guys.

Regards,

Humpty

pranavtrehun007
06-11-2009, 10:28 AM
Good question humpty dumpty, i hope sum1 answers that.

btw, duty is just half the story, they have ways to extort money from ppl... thats because it starts with a base customs duty and then they add countervailing duties, Special countervailing duty, excise cess, customs cess, education cess etc. even if an item is duty free.... that doesn't mean you'll really get it duty free.

:(

MohitM
06-11-2009, 09:32 PM
Done it a lot of times... Duty comes to about 22% of the item cost + freight charges.

Microchipdirect.com charges this percentage (last time I ordered was a year back) for shipping through FedEx. But since the standard rate of duty has come down a bit so total should be less than 20%.



How can I be sure that the duty being applied to the goods is correct .
Depends on how the goods are declared. Check out Chapter 85 and Chapter 90 here...
http://www.cbec.gov.in/customs/cst-0809/cst-main.htm



btw, duty is just half the story, they have ways to extort money from ppl... thats because it starts with a base customs duty and then they add countervailing duties, Special countervailing duty, excise cess, customs cess, education cess etc.
That is really to protect Indian industry from lower priced imports. If an Indian product is sold, it attracts excise duty, cess, and VAT... So in effect the Indian product's end-user price has a 15%-20% 'markup' on the factory price. If an equivalent price imported product came to the market with just the import duty (free-to-10% presently) and no other duties, it would be cheaper than the Indian product. So to rationalise, the Indian government has these add-on duties on the imports, which is really all those duties and cess that a similar Indian product attracts.

So this is not really extortion.

The good news is that the customs don't bother with stuff that is less than $100-$150 and shipped through postal services. The resources, paper-work, man-hours involved in such low value goods doesn't make sense for them to put in any effort. So these things just sail through the customs.

HTH,
Mohit.

humpty_Dumpty
06-11-2009, 11:04 PM
Hi Mohit thanx for your so informative post.
I had checked the Chapter 85(which is of my interest) and on page 20 it says that there is no duty on
"Processors and controllers, whether or not combined with memories,
converters, logic circuits, amplifiers, clock and timing circuits, or other circuits"

so except for the freight charges(which I understand might ONLY be shipping charges) what are other charges / taxes levyed both by the govt and the courier company(lets assume that to be Fedex).

And how can I know about them?
Regards,

Pranay

MohitM
06-13-2009, 05:01 PM
This is from a bill of entry for some items we ordered from UK last month... Its a medical/scientific instrument assessable for 7.5% custom duty.

This is how it looks like:

1. Invoice value (C&F) = GBP 1935.02 ~= INR 143,095.00
This was paid by our bankers to the shipper about a week before shipment.

2. Insurance charged @ 1.125% = INR 1610.00
The shippers (TNT) did not charge insurance, so the customs charged this amount. Duties have to be charged on Carriage, Insurance & Freight paid, i.e. CIF amounts. If not insured, then the customs have their own percentage like the one here, that they add.

3. Landing charges = Rs. 1447.00
Again charged by the customs.

4. Total assessable value = Rs. 146152.00

5. Basic duty @ 7.5% = Rs. 10961.00

6. Sub total so far = Rs. 157113.00

7. Additional duties:
a. 4% = Rs. 6284.00 (this is 4% of 6 above)
b. 3% = Rs. 189.00 (this is 3% of 7a)
c. 3% = Rs. 523.00 (this is 3% of total of basic duty 5, 7a & 7b)
d. 4% = Rs. 6564.00 (this is 4% of total of basic duty 5, 7a, 7b & 7c)

Total duties: Rs. 24521.00

Which comes to 16.78% of total assessable value.
And assessable value itself is 2.1% more than what we paid to the seller (remember insurance and landing charges).

So total is about 18.9% ~= 19% duty for a medical/scientific product.

Hope this gives you an idea of what to expect from the customs department.

humpty_Dumpty
06-13-2009, 07:31 PM
Thanks a lot Mohit for your soooooo informative reply.
It shall help me greatly in deciding if i should go ahead with my purchase.

Regards,

Pranay
www.pranaysharma.in

vikas
06-13-2009, 08:09 PM
Nice breakout Mohit.

Any Idea for getting cheap stuff imported from China ? . DHL /kg does not make sense.

debu
06-14-2009, 09:04 AM
@humpty_Dumpty: A few week ago, I ordered some electronic components from digikey, (including controllers, and fully assembled power supply PCB's). The total worked out to be USD1660.00 (including USD90 shipping), it was shipped via UPS, arrived in 9 days, and I made a check out to UPS for INR21373 towards duty and excise. According to google (clickie) (http://www.google.co.in/search?hl=en&client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial&hs=3mg&q=1660+USD+in+INR&btnG=Search&meta=&aq=f&oq=) USD1660 is INR78766.3, which means I payed 27.13% over the cost of the components and shipping.

Hope this helps,

Regards,

Debu :)

MohitM
06-14-2009, 01:36 PM
@humpty_Dumpty: A few week ago, I ordered some electronic components from digikey, (including controllers, and fully assembled power supply PCB's). The total worked out to be USD1660.00 (including USD90 shipping), it was shipped via UPS, arrived in 9 days, and I made a check out to UPS for INR21373 towards duty and excise. According to google (clickie) (http://www.google.co.in/search?hl=en&client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial&hs=3mg&q=1660+USD+in+INR&btnG=Search&meta=&aq=f&oq=) USD1660 is INR78766.3, which means I payed 27.13% over the cost of the components and shipping.

Hope this helps,

Regards,

Debu :)

Do you have a bill of entry? Did they give a breakup? Because I think you were overcharged. There is no way it should be 27%.

Ask them for the Bill of Entry. Usually when imports are below Rs. 1 lakh, the customs creates a 'General Bill of Entry' where they enter a number of different consignments in the same BoE. This isn't usually given by the courier company to the consignor. But if you ask for it, they will give a photocopy. The BoE gives a breakup and you can find out what they charged and how. And if they say they don't have a BoE, then tell them no goods can enter India without a BoE.

www.microchipdirect.com charge customs duties before shipment in the bill they create. FedEx ships the goods, clears it and delivers it to your place, without asking for any extra charges. I created a fake order (of ICs, microcontrollers, a development board with programmer) to find out what they charge these days. It turns out that the duty is $18.48 on a $193.29 purchase (freight included). About 9.5%. See it over here:
http://picasaweb.google.com/schouse/Electronics#5347090927137609858

Debu, probably they included a hefty handling/customs clearance charges in the Rs. 21373 that you paid.

MohitM
06-14-2009, 01:41 PM
Nice breakout Mohit.

Any Idea for getting cheap stuff imported from China ? . DHL /kg does not make sense.
What kind of stuff?.. Is the consignment light or heavy? High-value or cheap?

humpty_Dumpty
06-15-2009, 09:48 PM
WOW!! things are getting pretty interesting here :)

Mohit Sir is it possible for you to enlighten us on the "101 guide for exporting/importing things to India" and if not this then at-least answer to your last post.

I am very much interested to know about the same, specially as I am soon moving to an Eastern Country for my masters education.

And by the way I am right now not ordering my kit from US as the shipping charges for a 75$ kit is coming to be 105$ :).

Regards,

Pranay

MohitM
06-16-2009, 03:05 PM
Mohit SirPlease call me Mohit.


is it possible for you to enlighten us on the "101 guide for exporting/importing things to India" I'm not a know-all in this matter, but I'd be able to answer some questions. I'm actually not a regular importer. But sometimes we need things from overseas and so we do it.


if not this then at-least answer to your last post.Don't understand which answer to which post are you referring to.