As per the 2015-20 commerce coverage, whose provisions have been prolonged until March 31 this yr, import of presents was free in case of items which can be in any other case freely importable beneath India’s international commerce classification norms. Any different imports required an authorisation from the Directorate General of Foreign Trade (DGFT).
| Photo Credit:
V.M. MANINATHAN
It might develop into simpler to obtain Rakhis and life-saving medicine as presents from family or associates overseas, beneath India’s new Foreign Trade Policy (FTP), despite the fact that it has tightened provisions for different presents from abroad, together with these bought from international e-commerce portals.
As per the 2015-20 commerce coverage, whose provisions have been prolonged until March 31 this yr, import of presents was free in case of items which can be in any other case freely importable beneath India’s international commerce classification norms. Any different imports required an authorisation from the Directorate General of Foreign Trade (DGFT).
Under The new FTP efficient this month, “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).”
“Import of goods as gifts with payment of full applicable duties is allowed,” the brand new coverage states. Rakhis as presents will appeal to zero customs obligation for instances the place the related levy is ₹100 or much less.
“In the past, ‘gifts’ were being misused in a few instances, to import goods without any duty payment, and this was resulting in leakages and lower customs duty collection,” RSM India director Siddharth Surana informed The Hindu, explaining the rationale for searching for to tax all imports as presents, barring Rakhis and life-saving medicines.
However, the coverage doesn’t outline “life-saving drugs”, so additional readability could also be wanted, Mr. Surana signalled. “The other pertinent aspect is that there does not seem to be any monetary limit for the gift and there would be a customs duty incidence on gifts irrespective of the amount. We believe defining a threshold, (say, ₹50,000 per importer per annum) would be imperative and we expect the government to do so,” he underlined.
