Got a detention cum show cause notice from Customs

It was a 3rd party.
Well I see where everyone is going and thanks to all for the inputs. But consider a practical scenario, if the Customs officer arbitrarily decides to levy 41% duty + penalty, what choice do I have?

Ask them to show you the tarrif list and the documentation which specifies this rule.
 
They calculate duty on the basis of landed cost.

cost of the product + shipping + insurance

Was thinking of the concept of duty here and depending on the slab its an effective way to control money that goes out. They get a cut out of every purchase. Since we import more than we export.

As far as penalties goes i think they give the officers discretionary powers if they determine something dodgy is up. Grossly undervaluing a product and then being unable to produce transaction details means they will decide what price and subsequent duty to levy. A penalty would be applied in the case where there is an infraction. Its not the default.

Basically if you play straight they cannot penalise you.
 
Why would they calculate duty on shipping charges ? Which donkeys make this rules !!


The rule is not stupid, the rates are stupid. Landed cost is a sensible figure to base your duty on.

What is REALLY stupid, is that when shipping is free, they add 20% of invoice value as presumed shipping cocts. Often, I chose paid shipping when the invoice value is large, as the 20% makes the 'free' shipping very expensive.
 
What is REALLY stupid, is that when shipping is free, they add 20% of invoice value as presumed shipping cocts. Often, I chose paid shipping when the invoice value is large, as the 20% makes the 'free' shipping very expensive.
This would make a good question to ask the customs officer. Adding phantom costs when there are none.

My thinking on this is if you show the transaction details how much was transferred over, the breakdown of costs, then it should not enter the picture. You've not paid it therefore it cannot figure in the landed cost. So this goes down to how they define landed cost, if somebody else pays shipping, it added to the value anyway. Does not matter who paid it in that case. Might be free to you but shipping is not free. Therefore you have to use whatever shipping cost the sending company would charge and not some arbitrary figure of 20% even if you did not pay the shipping cost. What do you think ? sounds crazy isn't it :(

The hard part is that you are the one that needs to prove things, if you can even that balance by asking them to also prove why or explain why they levy charges then the playing field is leveled somewhat. Course this is dicey since they have discretionary powers. have to be persuasive and argue logically.
 
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Therefore you have to use whatever shipping cost the sending company would charge and not some arbitrary figure of 20% even if you did not pay the shipping cost. What do you think ? sounds crazy isn't it :(

The 20% is in their rules. Crazy but that's nothing new with Indian 'rules'.
 
I have ordered a drone from Ali Express worth 5000 INR inclusive shipping charges. Will that attract Custom Charges?

From what I have read above, 41% surplus charge is insane!

Kindly Reply
 
You cannot import drones, you will need a DGCA licence to import it and you will also need a Equipment type approval certificate from the WPC of DOT ( which is next to impossible for a individual).
This rule is the same even after the upcoming legalization of flying certain type of drones.
 
I have ordered a drone from Ali Express worth 5000 INR inclusive shipping charges. Will that attract Custom Charges?

From what I have read above, 41% surplus charge is insane!

Kindly Reply
They charge duty for anything costing above Rs 2000. This is govt rule from years.
 
Say, if somebody is slated to receive a gift/prize/anything not purchased.. even then?

it has to be marked as gift. customs officer will see if billing address and receivers address is same or not. If its same, he'll charge duty. Those guys usually go by the rule book. If there's something about charging duty on gift items they will charge it. If its zero percent they will allow it to pass without charging duty.
 
I have ordered a drone from Ali Express worth 5000 INR inclusive shipping charges. Will that attract Custom Charges?

From what I have read above, 41% surplus charge is insane!

Kindly Reply
It will attract customs for sure. And infact it may get held up at customs due to curbs on importing radio frequency (RF) devices. Few of my friends imported drone and few of them got thru with customs but majority of them were held up at customs and send back.

DGCA has framed new rules where you have to pay 2k for drone flying license for 5 years to operate a 2k~5kg drone but they come into effect in December this year. So I have no idea what will happen to your drone.
 
Nano drones(Below 250g) are exempt from it AFAIK
All drones are illegal to import till December, even after December you will need a ETA from WPC wing of the DOT even for flying a nano size drone. Read my post few posts above.

I know because I am a RC enthusiast since more then a decade, I have multiple RC drones, planes, cars. and I have visited the principal room ( customs commissioner room )several times over the years and there is no way they will release a product, once they know it has a radio control device.
 
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