Presentation on theme: "PROVISION RELATED TO BAGGAGE: The term Baggage has been defined under section 2(3) of Custom Act, to include unaccompanied baggage as well. Baggage does."— Presentation transcript:
PROVISION RELATED TO BAGGAGE: The term Baggage has been defined under section 2(3) of Custom Act, to include unaccompanied baggage as well. Baggage does not include motor vehicles, firearms and goods of a commercial nature or in commercial quantities.
Personal effects Household articles Jewelry Professional equipments Gifts Other articles CATEGORIES
Special Provision Related To Baggage Are: Declaration by Owner of Baggage[Section 77]. The owner of any baggage has to make declaration of its contents to custom officer for the purpose of clearing it, which is known as Baggage Declaration. The Customs Department has provided for two channels: Green Channel : Green channel is provided for those travellers who do not have any dutiable goods. Red Channel : If a person as carrying dutiable goods he should pass through Red channel.
Rate of Duty & Tariff Valuation [Section 78]: Rate of duty and tariff valuation applicable to baggage shall be the rate and valuation in force on the date of filing of declaration. a)General rate on baggage: effective rate i.e. 1.3.2005 is 35%. Baggage is exempt from CVD. Education cess @2% and SHE cess @1% is applicable. b)Exemption to laptop computer: laptop/notebook brought as baggage by person over 18 years of age is fully exempted. c)Duty payable at baggage rate even if goods are leviable at lower rate of duty as per tariff decided in ACC vs. CC 2001. Power to Exempt Baggage from Duty. [Section 79 ]: This section empowers the Central Govt. to frame rules providing exemption/concessions to baggage from duty. Accordingly the Central Govt. has made the Baggage Rule, 1998.
The Baggage Rules, 1998 Resident Rules 2(ii) means a person holding a valid Indian Passport and normally residing in India. Tourist Rule 2(iii) means a person not normally resident in India, entering India for stay of not more than 6 months in the course of any twelve months for the purpose of touring, recreation, sports, health. Study, religion or business etc.
Rule 3: Passengers returning from countries other than (a) Nepal, Bhutan, Myanmar or China (b) Pakistan by Land Route An Indian resident or a foreigner residing in India, returning from any country other than four mentioned above, shall be allowed clearance free of duty articles in his bonafide baggage to the extent below.
Duty Free Entitlement For Passengers of age 10 Year & above below 10 Year (i)Used personal effects (excluding jewellery) required for satisfying daily necessities of life (ii)Other articles (a)Stay abroad for more than three days (b)Stay abroad upto three days Free Rs. 35000/- (in value ) Rs. 15000/- (in value) Free Rs. 6000/- (in value) Rs. 3000/- (in value)
Rule 4: Passengers returning from Nepal, Bhutan, Myanmar or China other than by Land route Provides that if the above said passenger is returning from the above said four countries, in that case the duty free allowance will be as given below. Duty Free Entitlement For passengers of age 10 years & above below 10 years (i)Used personal effects (excluding jewellery) required for satisfying daily necessities of life (ii)Other articles (a)Stay abroad for more than three days (b)Stay abroad upto three days Free Rs. 6000/- (in value) Nil Free Rs. 1500/- (in value) Nil
Rule 5. Profesional returning to India An Indian passenger who was engaged in his profession abroad shall on his return to India be allowed clearance free of duty, in addition to what he is allowed under rule 3/rule 4, as the case may be, the following:- (a) Indian passenger returning after at least 3 months i. Used household articles (such as linin, utensils, tebleware, kitchen, appliance and an iron) upto an aggregate value of rs. 12000/- ii.Professional Equipment upto a value of rs.20000/- (b) Indian passenger returning after at least 6 months (i)Used household articles (such as linen, utensils, tebleware, kitchen, appliances and an iron) or an aggregate value of rs. 12000/- (ii) Professional equipment upto a value of rs. 40000/-
(c) Indian passenger returning after a stay of a minimum of 365 days during the preceding two years on termination of his work and who has not availed this concession in the preceding three years. Used household articles ( such as linen, utensils, tableware, kitchen, appliances and an iron) and personal effects (which have been in the possession and use abroad of the passengers or his family for at least six months) and which are not mentioned in Annex I or Annex II or Annex III upto an aggregate value of rs. 75000/- ( including one unit each of specified articles on payment of 30% duty)
Rule 6: Import of Jewelry An Indian passenger who has been residing abroad for one year is allowed to bring jewelry, free of duty in his bonafide baggage up to an aggregate value of Rs. 10000/- ( in the case of a male passenger) or Rs. 20000/- (in the case of a lady passenger). Duty on Gold : 1. Gold bars other than tola bars, bearing manufacturers or refiners engraved serial number and weight expressed in metric units and gold coins. Rs. 300 per 10gms + 3% edu. Cess. 2. Gold in any form other than above mentioned. Rs. 750 per 10gms+ 3% edu. cess
Two condition have to be satisfied for import and payment of duty of gold viz. a)The person should have been staying abroad for over 6 months. b)Duty must be paid in convertible foreign currency. c)Weight of gold should not exceed 10kg per passenger. d)Ornaments studded with stones and pearls are not allowed to be imported.
Who can import silver as baggage:- Any passenger of Indian origin Any passenger holding a valid passport issued under the passport act 1967. Conditions: Weight of silver should not exceed 100kg per passenger Duty @ 1500rs. Per kg + 3% education cess in foreign currency. Ornaments studded with stones and pearls will not be imported. Passenger can either bring silver himself or import within 15 days of his arrival in India. Duty On Silver
Rule 7: Duty Free Allowance And Entitlement For Tourists A tourist arriving in India shall be allowed clearance free of duty articles in hid bonafide baggage to the extent as mentioned below: Category of Tourist Articles allowed free of duty 1. Tourists of Indian origin other than those coming from Pakistan by land route. Used personal effects and travel souvenirs, if: (a)These goods are for personal use of the tourist, and (b)These goods, other then those consumed during the stay in India exported when the tourist leaves India for a foreign destination. (c)Articles allowed to be cleared under rule 3 or rule 4 of the baggage Rule 1998
II. Tourists of foreign origin other than those of Nepalese origin coming from Nepal or of Bhutanese origin coming from Bhutan or of Pakistan origin coming from Pakistan (i)Used personal effects and travels souvenirs, if (a)These goods are for personal use of tourist (b)These goods, other than those consumed during the stay in India, exported when the tourist leaves India for a foreign destination. (ii) Articles upto a value of Rs 8000 for making gifts No free allowance III. Tourists of Nepalese origin coming from Nepal or of Bhutan origin coming from Bhutan No free Allowance IV. Tourists of Pakistan origin or foreign tourists coming from Pakistan or tourists of Indian origin coming from Pakistan by land route (i)Used personal effects and travel souvenirs, if (a)These goods are for personal use of the tourist (b)These goods, other than those consumed during the stay in India, exporters when the tourist leaves India (ii) Articles upto a value of Rs.6000 for making gifts.
Article allowed free of dutyConditionsRelaxation a)Used personal and household articles other than those listed at Annex I or II but including jewelry up to Rs.10000 by gentleman passenger or Rs.20000 by lady passenger. b)Jewelry taken out earlier by the passenger or his family member from India. 1)Minimum stay of two years abroad, immediately preceding the date of arrival on transfer of residence. 2)Total stay in India on short visits during 2 preceding years should not exceed 6 months. 3)Passenger has not availed this concession in preceding 3 years. satisfaction of assistant commissioner of customs regarding the jewelry. a) For condition 1) shortfall of up to 2 months in stay abroad can be condoned by assistant commissioner of customs: i.Terminal leave ii.Any other special circumstances. b) For conditions 2) commissioner of customs may condone short visits in excess of 6 months. c) For condition 3) no relaxation Rule 8: Duty free allowance and entitlements for persons transferring residence
Rule 9: Unaccompanied Baggage Bonafide unaccompanied baggage is also allowed under above rules and subject to aforesaid restrictions, if it was in his possession. The Conditions are: a)Goods dispatched within 1 month of arrival of passenger in India. This limit can be increased by custom officers if sufficient reason for delay is shown. b)If dispatched before he start from abroad-unaccompanied baggage may arrive upto two months prior to his arrival. This limit can be increased for sufficient reasons but not exceeding the period of 1 year.
Rule 10 : Application of these rules to members of the crew The provision of the rules shall apply to officers & members of crew engaged in a foreign going vessel for important of their baggage at the time of final pay off on termination of their engagement. The General Rate of Duty. The general rate of effective duty on baggage is (35% w.e.f. 3.2.2005) Transhipment/transit of baggage: Transhipment facility is available for baggage [practically for unaccompanied baggage]. It will be under supervision of customs officer and the passenger has to pay the supervision charges. Facility available at limited ports/airports. Personal effects (according to circular No 72/98 Dt 24-9-1998):- Personal Jewellery One camera with 20 filmrolls (max) One computer (Laptop/Note book) One electronic diary.
General free allowance to tourists: Tourist means person not normally resident in India or who enters India for a stay of not more than six months for legitimate non-immigration purposes. Cigarettes, cigars, tobacco, alcoholic liquids: 1.200 cigarettes or 50 cigars or 250 tobacco 2.Alcoholic liquor and wines up to 2 liters each. General Free Allowances Item
TEMPORARY DETENTION OF BAGGAGE [SECTION 80] Section 80 if the Customs Act provides, Where the baggage of a passenger contains any articles which is dutiable or the import of which is prohibited in respect of which a true declaration has been made under section 77, the proper officer may, at the request of the passenger, detain such articles for the purpose of being returned to him on his leaving India and if for any reason the passenger is not able to collect the articles may be returned to him through any other passenger authorised by him and leaving India or as cargo consigned in his name. Above section also make it clear if any reason the passenger is not able to take the detained baggage with him such baggage may be returned to him through any other passenger authorised by him and leaving India.
SAMPLE IN BAGGAGE: Commercial sample brought in India are not treated as bonafide baggage and hence do not attract baggage rules. The provision relating to sample are governed by FTP policy. Its import are treated on the same grounds as the import of commercial goods. These have to be declared before the Customs officer at the time of their arrival India. Exemption for commercial samples: 1)Commercial samples up to the specified value are exempt form custom duty provided they are imported by post or in aircraft or by courier. 2)Personal baggage are exempt up to the specified value of within a period of 12 months. 3)According to RBI guidelines commercial travellers can take out samples up to Rs. 3 lakhs in a year from India.
Baggage Transit Regulations [Section 81] This section provides that the CBE&C can make regulation regarding declaration, custody, examination, assessment and clearance of the baggage. It also authorises CBE&C to make regulations for providing for the transit/transshipment of baggage from one customs station to another or to a place outside India. Goods Imported & Exported By Post (Section 82 to 84) In case of import or export by post, the role of various institutions/authorities is as under: a)Government of India is the agency for carriage of goods, be it through sea, air or land; b)Post office authority has power to open and examine a portal articles if he has reasonable suspicion that goods contained in the portal articles are liable to customs duty or subject to some prohibition or restriction. c)Customs department has control on only those goods which are either dutiable or subject to some prohibition or restriction.
PROVISION NOT APPLICABLE SPECIFICALLY Section 82 provides that any label or declaration accompany the goods which contains description, quantity and value thereof shall be deemed to be a bill of entry import or export as the case may be. Rate of Duty and Tariff Valuation in case Postal goods [Section 83]: Section 83 of the Customs Act contains the provision regarding the rate of duty and tariff valuation in respect of goods imported and exported by post. In case of goods imported by post the rate and valuation for such goods shall the such rate and such valuation in force on the date on which postal articles was presented by postal authority to the custom authority. Under Section 84 of Custom Act, Central Board of Excise and Customs has been given power to make regulation providing for examination, assessment of duty, clearance of goods, form and manner in which an entry be made, transshipment or transit of goods imported etc.
Some of these are: Foreign Post Office/Dept at GPO Calcutta. Foreign Post Office at Mumbai. Foreign Post Office at Delhi. Foreign Post Office at Jaipur. Foreign Mail Sorting Office at Varanasi. Procedure for clearing such goods: 1.Postmaster prepares a list in relation to all post parcels on their receipt. 2.On suspection of any prohibited or dutiable articles the addressee is sent a notice to be present at appointed place and time. 3.In case of non-compliance the custom authorities are entitled to open the article which will be delivered to custom department also. 4.On its receipt custom appraisal would segregate them into the following: i.Which can be assess to custom duty on basis of label or custom declaration or, ii.After opening the parcel and physical examination of goods or, iii.For which further information or documents are necessary. 5.On assessment of duty the value description and duty recoverable shall be inscribed on parcel assessment sheet. 6.When the postal articles are delivered to addressee the duty shall be collected from him which is credited to custom authority periodically.
Gift by Post up to specified value are exempt:- Goods from abroad up to the specified value which are not prohibited, for import are exempt from duty if sent through post or courier. One thing shall have to be kept in mind that the postal charges or air freight will not be taken into account for determining value limit. Another exemption of post parcels is available where custom duty payable on these articles is less than Rs. 100. No duty is payable on such on such post parcels where the duty assessed on them is less them Rs. 100. This provision has been made with a view to ignore small parcels.
The term stores as u/s 2(38) means, goods for use in a vessel or aircraft and includes fuel and spare parts and other articles of equipments, whether or not for immediate fitting. Stores required during voyage: Basic necessities of passengers and crew Stock of fuel and other parts for repair and maintenance Life saving things and means of entertainment Provisions relating to stores(sections 85-90)
Regarding import of such stores in a vessel a stores list has to be filed in prescribed form with the import general manifest or export general manifest as the case may be Section 86(1) provides that any stores imported in a vessel or aircraft may remain on board without payment of duty while it is in India. Section 87: any stores imported by a vessel or aircraft may be consumed without payment of duty while it is in India. Special provisions for ship stores
Section 89 of custom act provides that the goods manufactured in India may be supplied to a foreign going vessel and may be exported free of duty provided the quantity complies with a provided any proper officer. Section 85 of custom act provides that where any imported goods are entered for warehousing or which the importer makes a declaration that the goods are to be supplied as stores to vessels or aircraft without payment of import duty the proper officer may permit the goods to be warehoused without the goods being assessed to duty. Provisions relating to supply of ship stores
Under section 90 of customs act any supply of imported stores to India navy are exempt form duty. Similarly, stores supplied to crew of a ship of India navy or coast guard organization by government as per conditions of service are also exempt. If in any case duty is paid, a drawback @ 100% of duty is refunded. Provisions regarding ship stores supplied to India navy vessel coast guard organization