This is a rather different post from the ones you would be used to. There is a reason for this, I have been buying stuff online for over 10 years now – a lot of this is on international sites. Until recently I was clueless about the laws governing international parcels received in India. 
A recent incident regarding one of these purchases made me dig deeper into the laws and I learned a lot. I wanted to share my experiences with you.
I have read many bloggers who are clueless as to why they have been charged a huge Customs duty on something small where most of the purchases got through without being charged. . So maybe I can make some sense for all of you out there.
Parcel Rules
First of all, you need to know that there is a rule that governs import of articles by post or air from abroad. These may be of the nature of gifts, commercial samples or purchases for personal use. Each of these have a different limit that is free of Customs duty. Also, this is applicable per parcel, so there is no annual limit as such.
If you are receiving gifts or commercial samples then the duty free value is upto Rs 10000. This includes shipping fees as well as insurance.
For purchases for personal use, the limit is Rs 2000 which again includes shipping and insurance. So effectively – given today’s exchange rates, you can buy something worth approximately $ 30 including the shipping fee. Anything in excess of this value can and will attract a duty of approximately 45% to 50% of the value of the goods PLUS a penalty of Rs 5000. Yes guys, you read that right.
So why is it that you get charged Customs duty at times and not on other occasions. Well, the postal department hands over a small sample of parcels to customs for opening and checking. So yes, a lot depends on your luck. Moreover, if you have used express shipping, there is a higher probability of your parcel being checked. There is the obvious assumption that the value of goods is higher if you use the express delivery channels.
Standard Shipping vs Express
Now for some further nitty gritty. If you order your parcel using Standard Delivery, the post man will bring it to your doorstep. If Customs duty has to be levied, there will be a form attached to your parcel giving you the value of duty to be paid. This will then be collected in cash, by the postman and he will hand over the parcel to you. My advice to you all, use this method, it works best and is least painful. In my experience, I have been charged about 40% duty on such parcels.
If you order through express delivery, your parcel lands at a completely different location. Here the checking is far more stringent. If your goods are valued at higher than Rs 2000, you will be sent a letter asking you to bring over a ton of documents and present yourself in person at the office. Only after thorough due diligence will your parcel be released, duty and fine being paid – of course. There is also a note in the letter informing that your goods will be auctioned off in the event that you don’t claim within 15 days of receipt of the letter.
Overall Thoughts
So in short, my advice is, check the import laws and regulations to get a grip on what duty is applicable, gift, personal use, commercial samples etc. Use the cheapest mode of shipping, since it is part of the Rs 2000 allowed limit. Also, you are better off paying duty at your doorstep.
If you do have the option, get someone to send you a gift. This increases your limit tremendously. Obviously a better way to go.
This post is completely about my personal experience about Customs duty and so there is a possibility that you may have experienced something completely different. Please go ahead and make the necessary checks before you buy online.
*Written By Dela
Ritu KT
Very informative and helpful post. I recently converted into an online shopper and am trying to informed about the laws since Iove trying out international products. Thanks for the info!
Ritu KT
Will be sharing this through my social media
Ritu KT recently posted…Etude House Milk Talk Shower Sponge REVIEW
Dela
Ritu, there is almost no information available online. My idea was to generate awareness
Anusha
Thank you so much for doing this post . I buy tons of products online but few of my packages are not reaching out to me and I don’t have any tracking number . I don’t know what to do . Should I contact post office ?
Anusha
And is it possible to track your parcel if you choose standard shipping ?
Dela
Get in touch with the seller. They should be in a position to give you some despatch information. For std shipping, tracking is limited and delayed. Check this link http://ipsweb.ptcmysore.gov.in/ipswebtracking/
Dollie
Thanks for this post. The Mumbai Customs, for some reason, has been charging me customs for almost each parcel since the last few months. though the value is mentioned as $15, they will value it at Rs 2000 or higher and then charge me a huge duty. Do you have any idea what the procedure is to ask for a waiver of duty?
Dela
Dollie, for one they assume you have under invoiced. Then they somehow mark cosmetics as chemicals and justify the duty and penalty since you need a license to import chemicals. There is no process to refund that I am aware of currently. I even got my hubby, an advocate to check the regulation
Dela
I too am in Mumbai and have been paying customs on virtually all my shopping of late. Don’t know if they have changed the process here. I’m going with strawberrynet for most purchases now as they are the only site refunding customs
Nia
I Have had luckily never had to pay customs (touchwood) as you said it depends on luck,right now I’m feeling very lucky and blessed 😀
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Dela
Wow, that’s amazing, lucky you
Cherry
Thanx a lot for this post. How do they calculate shipping and insurance charges? Most of the international websites offer free shipping on some minimum amount. Do u know if inspite of free shipping,charges for shipping are added while arriving at the parcel value by customs?
Dela
No, they check the invoice. Whatever is mentioned there is taken. Also they take a slightly higher exchange value such as 65 for USD when you will be paying in the range of 63 actually
Cherry
Oh..can the site itself charge customs?
Dela
No, it gets added based on the invoice value. There is a CN22 form attached on every shipment showing the value
Radha@trystwithvanillagirl
Very good piece of Information Shalini!!
Very well shared!!
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