Issues with PPObox


I recently ordered a Lumia 520 off Microsoft, and was billed $31 inc taxes.


The product was shipped from NJ to India.

Then i received the following from PPObox

Item Actual Weight Including Volumetric (lbs.): 0.88

ICC Shipping, Handling & Clearance Fees: Rs. 780
Insurance Fees: 37

Customs Duty: Rs. 999

Service Tax: Rs. 101

I can't understand how I am being charged with Rs 999 as customs. AFAIK customs on mobile phones is 6%

Even if i use their calculator, it comes to


They want me to pay extra Rs 800 for customs. What should I do? Please help.
Because there is a very good chance the customs officer would not have taken into account the 'discounted' price of $31 and would have taken the price of the phone in India
(999*100)/6 = 16650

I am quite sure Lumia 520 was never 16.5K.

Ask them how they calculated the amount because it looks like its a rip off.
(9000*11)/100 = 999

I think they are taking the MRP of the phone. I dont think you have any other option apart from paying up.
Yes, discounts and the final price you got are not considered when duties are charged. Its the market value of the item that is used for the calculation. In fact AFAIK, for products that are available in Indian market, Indian pricing is the baseline regardless of what price you got it for from another country. In cases where they don't have that kind of info, they make an "educated guess" (which can get rather uneducated as well) of the market value and charge duties based on that.

As I see it, you have two options only,

1. Pay the duties and get the item
2. Don't claim the item at all and let it go.

The later makes sense only if you are being charged an insane amount for a low value item that it not getting the item at all would result in a lower loss than getting it released.