Import of Gifts - R R Padmanabhan, Director - Exim Academy

Import of Gifts - R R Padmanabhan, Director - Exim Academy.

Image courtesy: Pin by Ashley Gaviloski on Gift baskets

I get calls from people that they have received certain items as gifts through courier mode, but the courier firm refuses to custom clear the goods and deliver to them.  Courier sends a mail to them asking them to nominate their customs broker to clear the goods.  When a courier books the gift at the originating country, it is on the promise that they would deliver at home the gifts to the person whose name is written on the cover.  But then why do they fail to do it?  Why do they break their promise? 

The answer to these questions lies in the customs rule regarding the receipt of Gifts.

Courtesy: Taxscan


The following rules govern the receipt of Gifts: 

01.Any one can send gift to their people in India from abroad

02.The sender need not be a family member but can be any body.  Of course, one would not send gift to an unknown person, isn’t it?

03.The value of gift should not be more than Rs.5000.00

04.Duty is leviable for the gift. 

But what happens in few cases is quite contrary to the rules.  People think any amount can be sent as gifts.  It is wrong.  Then what happens if the value is more than Rs.5000.00?  The courier in India contacts the receiver in to file a Bill of entry and clear the goods.  But can an ordinary person do this? Certain not.  So, the courier advises the receiver to approach a custom broker to clear the goods. 

Recently, I got a call from a person in Ramnad, a district in south of Tamilnadu.  He got a mail from a courier company that a gift had been received in his name from Malaysia.  He was expecting the parcel for he knew his sister sent him a parcel.  The parcel contained items like infant dress, chocolates, stationary items, baby towels, baby soaps, jigsaw puzzle, storybooks etc.  This was the gift that his sister sent him for the newborn in the family in India.  The purchase bills of the goods were also sent along with the courier.  The value stood at 473 RM.  When the value was converted in to Indian rupees, it stood at Rs.8372.00! 

So we now know the reason for the courier company refusing to handle the shipment beyond this point.  The value of goods as gifts crossed 5000 Re limit. He contacted me through searching the Internet.  I listened to him and then told him the issues and costs that he had to meet.  Once the goods are shifted from courier mode to cargo mode, a Bill of entry has to be filed.  A Bill of entry has to be filed by the following day of the day of of arrival of the aircraft.  That is if the flight reached today at chennai airport, the bill of entry has to be filed by tomorrow. 

Now, for this person, the consignment reached 5 days earlier.  Since the filing of Bills of entry is delayed by 4 days, he has to pay Rs.5000 per day as penalty plus there would be customs duty and other clearance charges.  I estimated that it would be around Rs.30000.00.  He has to spend this much money to receive a gift of Rs.8372.00. Since it is not worth, I suggested disowning the cargo. 

So better be aware!

R R Padmanabhan,

Director - Exim Academy




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