Import of Electronic Goods by Post - CIF Value Enhanced.
THIS is rather complicated. If you want to export or import, you should understand at least the following Statutes.
- Foreign Trade (Development and Regulation) Act, 1992
- Foreign Trade (Regulation) Rules, 1993
- Foreign Trade (Exemption from application of Rules in certain cases) order, 1993
- Foreign Trade Policy
- Foreign Trade Procedure
- Customs Act, 1962 with its Rules, Regulations, Notifications and Circulars
- Customs Tariff Act, 1975, with its schedules.
And all these are frequently amended.
The amazing fact is that the stakeholders DO keep trek of all this mountain of LAW.
As per a combined understanding of all the above statutes, consumer electronic items of a CIF value not exceeding two thousand rupees can be imported by post.
Writing in our columns in March 2011, Postal Imports - Can Amendments Cut Gordian Knot?, JM Kishore explained:
Foreign Trade (Regulation) Rules, 1993 provide for various aspects relating to licencing. However, The Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993 stipulates several conditions/circumstances for Exemption from the application of these Foreign Trade (Regulation) Rules, 1993.
Accordingly, in terms of the Rule 3(1)(i) of The Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993,
Nothing contained in the Foreign Trade (Regulation) Rules, 1993 shall apply to the import of any goods,
by any person through the post or otherwise for his personal use, or by any institution or hospital for its use except-
xxx
xxx
Provided that the c.i.f value of goods imported as aforesaid at any one time shall not exceed rupees two thousand.
He had suggested that the value limit needs to be revised/enhanced to about Rs.10,000.
Government has now reacted. The limit is enhanced to Rs.50,000/-. The Foreign Trade (Exemption from application of Rules in certain cases) order, 1993, issued in exercise of the powers conferred by the Foreign Trade (Development and Regulation) Act, 1992 [read with the Foreign Trade (Regulation) Rules, 1993, if you please], is amended to enhance the limit to Rs. 50,000/-.
What does it all mean?
You can import by post or air (what is the difference?) articles for your personal use up to a value of Rs. 50,000. It should be noted that this is not duty free as baggage is. The Customs Tariff has a heading 9804 which reads as: 9804 - All dutiable articles, intended for personal use, imported by post or air and the Tariff duty rate is 35%. Nonetheless, Notification 12/2012-Cus provides a concessional rate of duty @10% in terms of sr. no. 517 in respect of all goods imported for personal use.
DGFT Notification 22/2015-2020., Dated: August 12, 2016