Baggage

Introduction
Definition of baggage
General prohibition
Statutory provision
Baggage Rules
Article mentioned in annex
Baggage rules
Types of Passenger
General free allowence
Provisional return to India
Jewelry
Tourist
Transfer of residence
Problems on baggage
Problem
Solution
Remark

1. Baggage

2. Introduction Elaborate provisions have been made for baggage as many Indians have tremendous craze for foreign goods particularly electronic goods, white goods, liquor perfumes etc.. New baggage rules 2016 have been notified, which are effective from 1-4-2016 Sec: 2(3) of customs act states that baggage includes 'un- accompained baggage' but does not include motor vehicle thus baggage rules are also applicable in respect of baggage which comes separately and which is dispatched from abroad before or often the traveler's departure "Baggage is whatever passenger takes with him for his personal use or convenience either with reference to his immediate necessities or for his personal needs at the end of his journey"

3. Definition of baggage SEC : 2(3) Baggage includes unaccompanied baggage but does not include motor vehicles. Baggage includes:- 1, Dutiable goods imported by - passengers -Member of a crew 2, unaccompanied baggage if dispatched previously or subsequently within prescribed period. -Motor vehicles, alcoholic drinks and goods imported their courier

4. What is Unaccompanied Baggage It is the baggage which is not carried by the passenger at the time of her/his travel but sent before or after arrival Time limit if the baggage is received before arrival: up to 2 months before arrival, or within such period (not exceeding 1 year) as allowed by Asst / Dy Commissioner of Customs (due to unavoidable circumstances) Time limit if the baggage is received after arrival: 1 month of her/his arrival or such other period as may be allowed by Asst / Dy Commissioner of Customs

5. Following are general prohibitions 1. Indian or foreign currency (above RBI limits) 2. Narcotic drugs 3 . Domestic pets (if not as per health regulations) 4 . Exotic birds , wind orchids, wild life 5 . Endangered species 6 . Ivory 7 . Reptile skins 8 . Antiques

6. STATUTORY PROVISION 1. Declaration by owner of baggage (sec:77) 2.Date for determination of rate of duty and tariff valuation in case of baggage (sec:78) 3.Bona fide baggage exempted from duty ( sec: 79) 4.Temporary detention of baggage (sec:80) 5.Regulations in respect of baggage (sec:81) 6.Date for determination of rate of duty and tariff valuation in case of goods imported or exported by post ( sec :83) 7.Stores may be allowed to be warehoused without assessment of duty (sec:85) 8.Transit and Transshipment of store (sec: 86) 9.Imported stores may be consumed on board of a foreign -going vessel or aircraft(sec:87) 10.Drawback on export of stores(sec:88) 11.Stores to be free of export duty(sec:89) 12.Concessions in respect of imported stores for the navy(sec:90). 13.Chapter not to apply to baggage and stores (sec:91)

7. 14.Entry of coastal goods(sec: 92) 15.Coastal goods not to be loaded until bill relating thereto is passed etc ,(sec:93 ) 16.Clearance of coastal goods at destination(sec:94) 17.Master of a coasting vessel to carry an advice book(sec:95) 18.Loading and unloading of coastal goods at customs port only (sec:96) 19.No coasting vessel to leave without written order(sec:97) 20.Application of certain provisions of this act to coastal goods (sec:98) 21.Power to make rules in respect of coastal goods and coasting vessels(sec:99)

8. Articles mentioned in Annex II (to which exemption under rule 5 is not applicable) are : Color/monochrome television, Digital video disc player, Video home theater system, Music system Dish washer, Air conditioner, Domestic refrigerators of capacity above 300 ltr or its equivalent, Deep freezer, Microwave Oven Video camera or the combination of any such video camera with one or more of the following: Television receiver, Sound recording/reproducing apparatus, Video reproducing apparatus Word processing machine, Fax machine, Portable photocopying machine Vessel , Aircraft Cinematographic films of 35mm & above Gold/silver , in any form, other than ornaments

9. Articles mentioned in Annex III (to which exemption under rule 5 is not applicable) are : Video cassette recorder/player, Video television receiver or video cassette disk player Washing machine Electrical or LPG cooking range Personal computer (desktop), laptop computer (notebook) Domestic refrigerators of capacity up to 300 ltr or its equivalent

10. The articles mentioned in Annex I (to which exemption under rule 3 & 4 is not applicable) are : Fire arms, cartridges of fire arms exceeding 50 Cigarettes exceeding 100 or cigars exceeding 25 or tobacco exceeding 125 gm Alcoholic liquor or wines in excess of 2 ltr Gold/Silver , in any form, other than ornaments e. Flat Panel (LCD/LED/Plasma) Television

11. Annexure IV Land routes mentioned in Annex IV (for the purpose of rule 3 & 4) is : Amritsar : Amritsar Railway Station, Attari Road, Attari Railway Station, Kharla Baroda : Assara Naka, Khavda Naka, Lakhpat , Santha Naka, Suigam Naka Delhi : Delhi Railway Station Ferozpur District: Hussainiwala Jodhpur : Barmer Railway Station, Munabao Railway Station Baramullah District: Adoosa g. Poonch District: Chakan -da- bagh

12. BAGGAGE RULES Rules Description Rule-3 An Indian resident or foreigner residing in India, returning from any country other than Nepal , Bhutan, Myanmar and china Rule-4 An indian resident or foreigner residing in india,returning from Nepal,Bhutan,Myanmar and china,other than land route Rule-5 Professional returning to india Rule-6 Jewellery Rule-7 Tourist Rule-8 Transfer of residence Rule-9 Unaccompanied baggage Rule-10 Members of crew

13. Type of passenger General free allowance Passengers (i.e. Indian resident or a foreigner residing in india or a tourist of indian origin (but not infant) arriving from countries other than nepal , bhutan or myanmar . GFA will be allowed without payment of duty for bona fide baggage( i.e.used personal effects) up to rs.50000 per persons. Indian resident coming from nepal , bhutan or myanmar , if the passenger comes by air craft. Note : If the passenger comes by road, their is no free allowence . GFA will be allowed without payment of duty for bona fide baggage( i.e.used personal effect)up to rs . 15000per persons. Rule -3 An Indian resident or foreigner residing in India, returning from any country other than N epal, B hutan, M yanmar and China

14. Rule-5 professional returning to India Passanger Professionl equipment Used house hold articals Passenger returning a stay of at least 3 months rs 20000 rs 12000 Passanger returning a stay of @ least 6 months rs 40000 rs12000 Passanger returning ofter a stay of mainimum 365 days the preceding 2 years on termination his work and not availed this concession in the preceding 3 years. Used household articals and personal effect ( which are not mentioned in annexure 1 2 and 3)up to an aggregate value of rs 75000

15. Rule - 6 Jewellery Duty Free jewellery : coming to india by an indian passanger after stay abroad more once year shall be allowed to clearance free of duty as under Type of passenger Up to weight Up to amount Gentleman 20grams Rs.50000 Lady 40grams Rs.100000

16. Rule - 7 Tourist Case Duty free allowance Tourist of indian origin coming to india other than tourists of indian origin coming by land routes. Used personal effects and travels if:- a. These goods are for personal use of the tourists b. These goods other than those consumed during the stay in India are re - exported when the tourist leaves india for a foreign destination. Tourists of foreign origin other than those of pakistani origin coming from pakistan coming to indian by air Articles as allowed to be cleared under rule 3 or 4 1. Used personal effects 2. Articles other than those mentioned in annexure 1 up to a value of rs.8000 for personal use of the tourist or as gifts.

17. Rule - 8 Transfer of residence Duration of stay abroad GFA for personal household items up to Conditions From 3 months up to 6 months Rs . 60000 Indian passenger. From 6 months upto 1 year Rs. 100000 Indian passenger. Minimum stay of 1 year during the preceeding 2 years Rs.200000 The indian passenger not have availled this concession in preceding 3 years. Minimum stay of 2years or more Rs.500000 Minimun stay of 2years abroad immediately preceding the date of his arived on transfer of residence.

18. Problems on baggage Problem - 1 Mr. Uday a person Indian origin, aged about 40years came to india on tour along with his baby aged 2 years, he carried with his following goods. Sl.no . Particulars Amount 1 Personal effects like clothes of mr. Uday 25,000 2 Used personal effects of infant valued at 40,000 3 Laptop 60,000 4 Travel souvenirs valued at 20,000 5 One liter wine worth 4000 6 Mobile phone worth 18,000 7 Digital camera 50,000 8 Cigars 20 worth 2500 Calculate total value of dutiable goods and total duty payable on baggage

19. Determination of rate of duty & tariff valuation when dutiable goods are carried Rate of duty & tariff valuation, if any, applicable to baggage shall be the rate & valuation in force on the date on which declaration is made u/s 77 Rate of duty on baggage is 35% + 2% EC + 1% SHEC = 36.05% No additional customs duty u/s 3(1) or special CVD u/s 3(5)

20. Solution : calculation of total value of dutiable goods and total duty payable on baggage Particulars Amount Personal effects like clothes of M r . Uday Exempted Used personal effects of infant valued at Exempted Laptop Exempted Travel souvenirs valued at Exempted One liter wine worth 4000 Mobile phone worth 18,000 Digital camera 50,000 Cigars 29 worth 2500 Total dutiable goods imported as baggage 74,500 Less : General fee allowance under rule-3 45,000 Balance dutiable goods 29,500 Total custom duty payable on baggage (29.500*38.05/100) 11,225

21. Working note 5.Up to 2 liters accommodate in GFA 6.Dutiable 7.Dutiable 8.Up to 25 accommodated in GFA

22. Problem-2 From the following information calculate duty liability in respect of Jewelry in each independent cases. If the passenger residing abroad for over one year before return to India on 15/5/18 Name of passenger Weight of jewellery Value of jewellery Mr.Raman 18grms 55,000 Mr. Kavan 25grms 44,000 Mr.shravan 25grms 75,000 Mrs. Revathi 35grms 1,20,000 Mrs. Prakruthi 45grms 90,000 Mrs. Pragathi 50grms 1,20,000

23. Solution:- Calculation of duty payable on jewellery on each independent case Name of passenger Weight of passenger Value of jewellery GFA Duitable value Duty liability Mr . Raman 18grms 55,000 50,000 5000 1802 Mr. Kavan 25grms 44,000 35,200 8800 3348 Mr.shravan 25grms 75,000 50,000 25.000 9512 Mrs. Revathi 35grms 1,20,000 1,00,000 20,000 7610 Mrs.prakruthi 45grms 90,000 80,000 10,000 3805 Mrs.pragathi 50grms 1,20,000 1,00,000 20,000 7610

24. Remarks 1. Upto rs . 50,000 GFA is available for men passenger 2. GFA rs . 44,000*25/25grms 3. Upto rs . 50,000 GFA is available for men passenger 4.up to rs . 1,00,000 GFA is available for lady passenger 5. Rs. 90,000*40/45grms 6. Up to rs . 1,00,000 GFA is available for lady passenger

25. Upto Rs . 1,00,000 GFA is available for lady passenger Rs . 2,50,000-1,00,000 Dutiable= 1,50,000 Rs . 1,50,000x38.05/100 Duty liability =57,075 Rs . 1,00,000 value Jewellery can be cleared free of duty

26. Personal effect upto Rs . 50,000 GFA allowed Name of passenger Value of jewellery GFA Duitable value Duty liability Mr . Ajay 48,000 48,000 Mr. Ajay’s Wife 20,000 20,000

27. https:// www.caclubindia.com/articles/baggage-rules-23315.asp