Import from US: what about customs

Safin

Skilled
A friend is sending me an electronic item from US. Now the actual US price is about 400$. But i have asked him to gift wrap and mark it as "no commercial value(Gift article)"
The packet would weigh just around 1.1 kg and about 20cm by 10cm by 5cm i reckon.

Now the question is would the customs have a problem with that here in India? If i have to pay customs duty(do i have to first of all?) and if yes on what base price?

Plus what shipping option is the best. USPS seems to be the cheapest(express delivery) at 40$. While UPS and DHL are double.
 
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