Hello!
Can i import protein supplements of USD 100 as a samples from USA ? Do i need to pay import duty if import through Fedex courier?
Please reply.
Vishal Soni
vishal soni (MD) (25 Points)
13 January 2011Hello!
Can i import protein supplements of USD 100 as a samples from USA ? Do i need to pay import duty if import through Fedex courier?
Please reply.
Vishal Soni
Import of samples
In the International trade it is considered often necessary that samples of goods manufactured in one country be sent to another country for being shown or demonstrated for Customer appreciation and familiarisation and for soliciting orders for goods from another country. India is also a signatory to a 1952 convention to facilitate the Importation of Commercial samples and Advertising materials. The notifications issued in this regard enable duty free import of genuine Commercial samples into the country for smooth flow of trade. It is however not a means to avoid paying Customs Duty through repeated imports of samples in smaller lots.
What are samples?
2. The Commercial samples are basically specimens of goods that may be imported by the traders or Representatives of Manufacturers Abroad in India, to know its characteristics and usage and to assess its marketability in India. Samples include consumer goods, consumer durables, prototypes of engineering goods or even high value equipment, machineries (including agricultural machinery) and their accessories. However, goods which are prohibited under Foreign Trade (Development and Regulation) Act, 1992 are not allowed to be imported as samples e.g. wild animals, wild birds and parts of wild animals and birds, ivory, arms & ammunitions, and Narcotic drugs.
Who can import samples?
3. Samples can be imported by the trade, industry, individuals, Companies, Associations, Research Institutes or Laboratories. These can also be brought by the Representatives of foreign Manufacturer as a part of their personal Baggage or through port or in Courier. They can also be sent by Manufacturers/Traders abroad to above parties in India.
Value limit
4. The bonafide trade samples can be imported by Trade and Industry provided the said goods have been supplied free of charge. For duty free clearance the value of individual sample should not exceed 5000/- and aggregate value should not exceed 60,000/- per year or 15 units of samples in a year. However, the Prototypes of engineering goods can be imported even if the value is more than 5000/-. Such prototype goods can be imported upto a value of10,000/- without payment of duty as long as the goods are rendered useless as merchandise by a suitable process. In case the value exceeds 10,000/-, the said goods have to be re-exported within a period of nine months or such extended period as the Assistant Commissioner of Customs may allow. The high valued samples are cleared after depositing duty with Customs and giving an undertaking for their re-export within nine months. The deposited duty is refunded when the machinery is exported back. However, if more than one product is being imported into the India, the value limit is increased proportionately. Similarly, if the samples are consigned to more than one consignee, by any foreign company, and are sent at the same time through the same Port/Airport, it shall not be charged to duty if the value limit of 5000/- per unit is adhered to. The consignments meant for distribution to different parties in India can also be imported together for convenience of transport, if the packets are clearly marked and addressed to different persons in India.
5. The value of 5000/- is the value of the goods at a country of dispatch excluding local refundable taxes like VAT in the country of dispatch. In case of free samples of 5000/-, it does not include freight or courier charges. If value is above 5000/-, the freight and insurance charges would be added to calculate the duty payable .
Records
6. Importers are trusted to declare correctly and adhere to the undertaking of the limit of yearly value and quantity. However, if any person is suspected to contravene the limit or undertaking deliberately he is liable to be investigated, penalized and / or prosecuted.
How will a salesman from a foreign country bring in the samples to India?
7. A commercial traveller of foreign country is eligible to import bonafide samples if the value of each of the item is not more than 5000/- per unit. He is also not required to produce the IEC code at the time of clearance of these goods.
8. The importing executive must declare that these goods are meant for securing export order or guidance of exporters, and that the total value does not exceed 60000/- per item during the 12 month period and that he has not imported more than 15 units of the said goods within the last 12 months. He also undertakes that he would not sell these goods and if he sells he will pay the duty leviable on those goods.
Machinery import
9. Machinery, which are prototypes of engineering goods, imported either for further manufacturing of the said goods or to be used as capital goods for export production or in connection of securing further export orders can also be imported duty free if the value does not exceed 10000/-. The said goods are normally defaced or made un-saleable by punching, cracking, marking with indelible ink etc. In case the machinery is valued more than 10000/- such goods are always chargeable to duty. The goods can be cleared by furnishing a Bank Guarantee(or) deposit of the duty payable and an undertaking from the importer that the said goods would be re-exported within 9 months of import. In case of high valued machinery the importer given an undertaking that the said goods are utilised for the purpose of demonstration at the place (s) which is declared. The Customs authority may also seal the machinery during its journey from the Port of importation to the place of demonstration and it is unsealed only at the place of operation or place of demonstration
Failure to re-export
10. The samples have to be re-exported within 9 months. However, the Assistant Commissioner, Customs, may under special circumstances extend the period of 9 months for a further reasonable period.
Import of samples under other scheme
11. In addition to above the following specific provisions/ schemes are available for duty free import of samples;
(a) Under 100% EOUs, EPZ, EHTP Schemes the samples of all types of goods manufactured by the Units can be imported duty free.
(b) Sample can also be imported for Government of India sponsored events viz. Trade and Industry fairs. These machineries are imported under a Carnet (Notification No.57/90).
(c) Samples can also be imported for Private Commercial exhibition for display or demonstration with the prior permission of Ministry of Commerce and Indian Trade Promotion Organization, (Notification No.3/89).
(d) Samples are allowed duty free import for promotion of tourism equipment and ancillary goods. (Notification No.113/57)
vishal soni
(MD)
(25 Points)
Replied 13 January 2011
Dear Mr.Deepak
Thank you for your reply,
I would like to import protein supplements from USA for my personal use, i dont want re-export.
So can i import as a samples of USD 100 for my personal use?
Please reply,
Vishal Soni
SECTION 27. Claim for refund of duty. –
(1) Any person claiming refund of any [duty and interest, if any, paid on such duty] -
(i) paid by him in pursuance of an order of assessment; or
(ii) borne by him,
may make an application for refund of such [duty and interest, if any, paid on such duty] to the [Assistant Commissioner of Customs or Deputy Commissioner of Customs] -
(a) in the case of any import made by any individual for his personal use or by Government or by any educational, research or charitable institution or hospital, before the expiry of one year;
(b) in any other case, before the expiry of six months
Further details: Click on the lick Below:
RAMESH KUMAR VERMA
( CS PURSUING )
(43853 Points)
Replied 14 January 2011
KIND ATTN VISHAL JI,
Bonafide commercial samples can be imported through courier provided the said samples are being received free of cost (see Import of Samples). Similarly, gifts from persons abroad upto the value of Rs. 5,000/- and all the life saving drugs and equipments which are not chargeable to any duty at present (see Notification 20/99-Cus) can also be sent to India through the courier mode.
Commercial goods which are dutiable can also be imported through the courier without any restriction of quantity subject to payment of duty by the courier company at the time of clearance of the said goods from the Customs.
FOR MORE INFO:- https://www.cbec.gov.in/js-menu/import-courier.htm
REGARDS,
vineet
(Copywriter)
(21 Points)
Replied 11 July 2011
Hi Experts,
I have been talking with a vodka dealer in russia. I want to import vodka from there. For that purpose he has sent some samples of the VODKA through DHL courier. But the custom department has charged duty on it. They have taken the retail price of the vodka, to calculate the duty whereas my russian dealer has shown the wholesale price while sending the courier.
My question is that do we require to pay any duty on it as it comes as a sample which has no commercial value?
Thanking you in advance
Vineet
New Delhi
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