Do you regularly shop from AliExpress or Gearbest or any other international marketplace?
Then you might get charged extra due to the new Customs Import Rules imposed by the Indian Government, which takes effect from 1st Feb 2019.
Till now we always used to mark our products as gifts so that it doesn’t fall under customs, but it seems our Govt is determined to end that, as a method to boost productivity locally made items.
In today’s post, I will talk about customs duty and taxes you need to pay when you import an item from abroad.
India exported US$318.2 billion and imported $462.9 billion worth of commodities in 2014. All of this happened with the formation of the Foreign Trade (Development & Regulation) Act, 1992 and India’s Export-Import (EXIM) Policy.
Customs Duties help manage the importing and exporting of goods in India.
What is Customs duty?
Customs duty is the duty charged on goods on their importation into India or exportation out of India.
What are the different types of rates of duties of Customs?
There are two types of rates of duty of Customs:
- Ad valorem rate, i.e., the tax is charged by value.
- Specific rate i.e., on the basis of quantity/number/ volume/ weight.
The duty is hiked from an average of 28.85% previously to 41.2% now. Also, you were able to import gifts up to ₹10,000 in value previously, but that bar has been decreased. This move has a lot of economic factors associated with it such as the depreciating rupee and current account deficit. It also encourages people to use in-house Made in India products to boost our economy. Importing finished goods is expensive, but importing pre-manufactured parts and then assembling here proves to be financially viable for companies and manufacturers. This is the reason why companies like Xiaomi and Samsung are already selling Made in India products, and Apple is struggling in our market.
With that said, we should see a decrease in the importing of goods in the foreseeable future. May our economy grow, and we rise to the top! But well, it does have other consequences that we, as a shopper need to face.
Customs Rules 2019 Implementation Date:
As of January 9th, 2019, the new rules will be implemented from 1st February 2019 onwards.
If you recall, 1st February 2019 is also the date for the implementation of the new TRAI DTH Rules.
I am a regular AliExpress shopper. As a shopper, I opt for any marketplace where I can get any product for cheap. AliExpress is my way-to-go preferred marketplace to import mainly electronic goods and accessories. These new rules are going to affect a lot.
Earlier, whenever I ordered something from abroad, I simply contacted the seller and asked them to mark my item as a gift, so that it avoids customs. There were times when they were valued over 100$, but still avoided customs due to their declared value of 5$ or something like that.
But it remains to be seen what happens from now onwards. Anyways, thank you for reading the article on the new Customs Import Rules, India.
If you have doubt or queries regarding customs duty on individual products or in any terminologies, feel free to comment and ask about it in the comment section below. I will be happy to help out.
Do share this article with your friends who shop from abroad to let them know about these new updates. Use the floating social share buttons below or on the left if you are on a desktop.
That’s all for now. I will be back soon with another exciting update. Till then, stay tuned!