As per the trade policy for 2015-20, the provisions of which were extended till March 31 this year, import of gifts was free in case of goods freely importable under India’s foreign trade classification norms. Any other import requires authorization from the Directorate General of Foreign Trade (DGFT). , Photo Credit: VM Maninathan
It may be easier to receive rakhis and life-saving medicines as gifts from relatives or friends abroad under India’s new Foreign Trade Policy (FTP), although it has opened restrictions for other gifts from abroad, including gifts bought from global e-commerce. The provisions have been tightened. Portal.
As per the trade policy for 2015-20, the provisions of which were extended till March 31 this year, import of gifts was free in case of goods freely importable under India’s foreign trade classification norms. Any other import requires authorization from the Directorate General of Foreign Trade (DGFT).
Under the new FTP, effective this month, “including goods purchased from e-commerce portals, through post or courier where customs clearance is sought in the form of gifts, life-saving drugs/drugs and rakhi (but not gifts) Import of items except relating to Rakhi).
The new policy states, “Import of goods as gift is permitted with payment of full applicable duties.” Rakhi as a gift will attract nil customs duty in cases where the relevant levy is ₹100 or less.
“In the past, in some cases ‘gifts’ were misused to import goods without paying any duty and this resulted in leakages and less customs duty collection,” said Siddharth Surana, director, RSM India. hindu, explain the rationale of tax demand All imports except rakhi and life saving drugs as gifts.
However, the policy does not define “life-saving drugs”, so more clarity may be needed, Mr Surana indicated. “The other relevant aspect is that there does not seem to be any monetary limit for gifts and customs duty will be applicable on gifts irrespective of the amount. We are of the view that it would be imperative to define a limit, (say, Rs.50,000 per importer per year) ) will be mandatory and we expect the government to do so,” he underlined.