The Directorate General of Foreign Trade (DGFT) clarified that the goods imported as gifts can be allowed import free (i.e. without prohibition) on payment of full applicable duties. Since the goods imported as gifts would be personal imports, the full applicable duties will be as follows
(a) Basic Customs Duty at the applicable tariff rate as per the First Schedule of the Customs Tariff Act for the heading 9804 which is 35% at present.
(b) IGST at the rate specified for the heading 9804 (Si. No. 227 schedule IV) in Notification No. 1/2017 –Integrated Tax (Rate) dated 28th June 2017 for IGST which is at present 28%.
A Circular issued by DGFT also said that Import of goods, including those purchased from e-commerce portals, through post or courier, where customs clearance is sought as gifts, is prohibited except for life-saving drugs/ medicines and Rakhi (but not gifts related to Rakhi,)
Explanation: 1. Rakhi (but not gifts related to Rakhi) will be covered under Section 25(6) of Customs Act, 1962 that reads “… no duty shall be collected if the amount of duty leviable is equal to or less than Rs. 100/, 2. Import of goods as gifts with payment of full applicable duties is allowed.
The DGFT also directed to ensure that there is no undervaluation by unscrupulous importers, officers may be advised to strictly follow the provisions of Section 14 of the Customs Act, 1962 read with Customs Valuation (Determination of Value of Imported Goods) Rules, 2017 for valuation of imports through courier and posts.
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