Here’s is some good news for all online buyers in India – Government of India has decided to scrap the custom duty on consumer electronics of value up to Rs. 50,000. Earlier, the limit was set at Rs 2,000 beyond which the customs would be levied at a flat 41.492%. Now Consumers in India can import consumer electronics of value up to Rs. 50,000 duty free.
According to the latest circular by the Ministry of Commerce and Industry, “Consumer electronic items (except hearing aids and life-saving equipment’s, apparatus and appliances and parts thereof): Provided that the c.i.f value of goods imported as aforesaid at any one time shall not exceed rupees fifty thousand.“
The The amended provision clearly explains that the total value would include the cost, insurance and freight (CIF) value of goods imported should not exceed Rs 50,000. The circular further added that CIF value of import of consumer electronic items at any one time by any person through post or otherwise for personal use is enhanced to Rs 50,000. As a general rule remember that the c.i.f. is 2-3% of the total cost of the product.
Bottom Line –
The most important point to mention here is that the huge difference of prices among the consumer electronics including high-end smartphones in USA and other foreign countries compared to Indian pricing will no longer exist (value up to Rs. 50,000 at the current exchange rates). Now importing to your favorite gadget in India will be duty free. For example, the Samsung Galaxy S7 Edge 32GB costs $640 on Amazon.com right now and at current exchange rates it valued 42968.42 Indian Rupees. At the same time the same Galaxy S7 Edge 32GB costs Rs. 55,900 on Amazon.in and Flipkart in India. Under some offers in International market sometimes it costs less that $500.
Anyone can easily notice the huge price difference, and this is also true for all other consumer electronics including laptops and TV as well.
Most of the Smartphones and other consumer electronics in the International Market are generally costing around $600-$750 which is still below the 50,000 INR limit at current exchange rates and that means you should be able to import these items directly without any additional duties.
One should also remember that the circular clearly mentions that rule applies when the product is obtained for personal use. So don’t expect any price cut on the goods in retail stores and online marketplaces in India because these imports are for commercial purpose.