FAQs

Customs duty is calculated on the CIF value only.

CIF value is arrived by adding ocean / air / road freight & Insurance charges from the overseas port of loading to the port of import.

It is advisable to provide the details of freight & Insurance charges to the Customs because in absence of that the Customs is empowered to levy a fixed percentage of FOB value as notional freight & Insurance charges, which is normally very steep.

Yes, Customs officers are vested with powers to keep your cargo on hold for examination especially when the officer has reasonable belief that the cargo may contain contraband / undeclared goods.

Normally, it should not take more than 2-3 days, but effective representation before the customs is essential to get your cargo cleared at the earliest to avoid heavy demurrage charges levied by the authorized Terminals / Container Freight Stations (CFS). Appointing a counselor at this point of time helps reduce your business losses.

If put on hold, export cargo is generally released for export within 2-3 days, but if it takes longer it is advisable to get in touch with the Consultant for expert guidance as each case is based on different facts.

Customs officer of the rank of Assistant or Deputy Commissioner of Customs and above, having       jurisdiction over the area in which your premises is located, can authorize search of the premises by issuing a Search Authorization in the name of a team of Customs officers. Such authorization is known as Search Warrant.

The Search Warrant carries signature of the issuing authority and the office seal. To confirm the authenticity of the Search Warrant, you can contact on the office telephone number of the issuing office obtained from the website. Recently it has also been made mandatory for the issuing officers to compulsorily mention Document Identification Number (DIN) in the Search Warrant which is a unique number assigned to that document. You also have the right to ask the officers to show their identity cards issued by the department.

The search team has to conduct search of the premises in the presence of two independent witnesses. 

Firstly, if the searching officers have reasonable belief that certain documents stored in the premises being searched, are of relevance to the investigation being conducted by them, the officers may seize such documents by enlisting the same under a panchanama signed by the officer and two independent witnesses. Secondly, if the searching officer has reasonable belief that the goods / things stored in your premises are liable for confiscation, he is empowered to seize such goods. Panchanama per se is not an evidence. It is only to refresh memory of panchas. If you feel that panchanama is not drawn correctly then it is advisable to take help of the counsel to understand the integrity and also to know what steps you can take to safeguard your rights.

The goods once seized are treated as in possession of the Government. However, depending on the nature of goods if it is perishable commodity or which requires special care etc. the goods may be handed over to the owner under a Supratnama / Supratdari, for a better caring of the goods under the stipulated conditions.

A copy of the panchanama may be obtained after the search for your premises, which records list of documents taken away / seized by the officers. It is advisable to keep copy of such panchanama for your future reference as many other departments may be asking you to produce the same documents which are seized during the search, but showing of the panchanama enlisting such documents relieves you of your burden to produce those documents.

Yes, you can get the benefit of Duty Drawback on account of the duty suffered on the inputs used in the manufacture of the export goods. However, irrespective of the duty suffered on the inputs, it’s a fixed percentage on the FOB value of exports, depending upon the commodity exported. To be eligible for the benefit, the Shipping Bill being filed has to Drawback Shipping Bill and necessary declaration of your intention to claim such duty drawback benefit should appear on the export documents like Invoices / Shipping Bill. There is a Schedule of Rates for duty drawback for each commodity.

Yes. Many products are covered under MEIS Scheme for exports. The benefit is a certain percentage of the FOB value of exports.

Undervaluation per se is an offence under the Customs, but if the undervaluation / overvaluation is minuscule it may not be treated as an offence which ultimately depends on case to case.

For seamless movement of your cargo you need to build a trust of irm in the customs department. There is a mechanism called ‘AEO status’ by obtaining which you can manifest your firm to be trustworthy for smooth movement of your cargo. For details about the procedures for obtaining AEO Status, you may email us your firm particulars.  

There is no difficulty in Customs clearance, as long as the medicines are in quantities sufficient only for your personal consumption and as long as you have the necessary prescriptions/ Doctors certificate.

A resident Indian is entitled to Rs 50,000 duty-free personal baggage allowance, excluding certain items.

The Indian Customs will have the approximate value of gadgets of popular make/brands. You can also get a copy of the manufacturer’s brochure/printed pricelist of the gadgets from any dealer and that can be shown to Customs.

A person of Indian origin (British Passport holder) coming to India is eligible to a duty free baggage allowance of Rs 15,000/-.

As long as you are complying with the provisions of the law there is nothing to fear. In the event of any harassment by any officer, you may immediately contact the senior most officers on duty, usually the Deputy / Assistant Commissioner of Customs. In case of demands for illegal gratification/graft, there are explicit directions/Notices at every airport on whom to contact.

The total Customs duty incidence on cars comes to around 181% of the CIF value.

You are entitled to claim benefit under Transfer of Residence. This allows you certain duty concessions, on certain items enlisted. For all other items, there is no duty. You can clear it at certain designated Customs ICDs in India. You are advised to have a complete, carton wise inventory of goods. For the electronic items, the purchase bill/invoices also come in handy in helping the Customs officer in arriving at the fair value.

In case you are coming to India on Transfer of Residence, there are certain duty concessions. The computer in question will also be eligible for a concessional rate of duty. As regards the value, there are depreciation rates for each of the years of use. If you do not have receipts, try to get brochure / price list from the dealers, to ease arriving at value. You can calculate the duty liability accordingly.

A person going abroad can get Export Certificate issued from any Customs formation for the goods while leaving India and on production of the said certificate while re-entering India, the same goods can be cleared without payment of Customs duty.

Arrest can be caused of any person when the Customs officer has reason to believe that the person has committed an offence punishable under Section 132 or section 133 of Sec.135a or section 136 of the Customs Act.  

If the person is arrested, following due procedure of law, bail is granted depending on the nature of offence viz. Cognizable or Non cognizable as is stipulated in the Act. The arrested person has right to know about the charges alleged against him. Also he has right to contract a near relative or friend or lawyer for his defense. 

Yes, you may apply for Anticipatory bail in such cases through a counsel before a magistrate.

Offences under Customs Act are liable for prosecution if duty/drawback involvement in alleged offence is more than Rs.50 lakhs or value of the goods is more than Rs.1 crore. Also if the goods are the ones which are prohibited by the Customs Act the monetary limit does not apply in such cases. However, a person can be prosecuted only if the charges are proved in departmental action and has reached its finality.