Q630. Customs Duty Exemptions in India for NRIs - Duty calculation sample when taking furniture to India from abroad

Question: hi there, I am an NRI in Malaysia, and planning to move back to india somewhere in 2016. But prior to moving back to india, I want to redo my house in india, Noida I want to send in a container load of furniture from Malaysia or China on immediate basis as 1st installment and then if required another smaller container in another 6-7 months. The same will include mainly all stuff to furnish an approx. 250sq/mrt build up house approx. 3000 sq ft (mainly sofas, recliners, dinning table only - no chairs, outdoor sitting etc) What are the customs duties exemptions that an NRI gets, and will it make a difference if I send the container from Malaysia or China as the sourcing country ? Is there a person I can reach out to and talk at your end to provide me one stop shop services ? looking forward to hear from you thanks n regards Devesh Agarwal Answer The duty exemptions that NRIs get in India for customs duty are under the ‘Transfer of Residency’ section. Under Transfer of residency, NRIs who have stayed abroad for at least two years preceding the date of arrival on transfer of residency, can import some used household items duty free and some items on payment of reduced customs duties. More information on this topic is available on this website at: When claiming customs duty concessions in India under Transfer of Residency (TR). Please be advised that you may have to make a declaration that the goods being imported have been in your family’s possession and used abroad for a year or more. TR exemptions generally apply only to used personal household articles! Since you reside in Malaysia and are considering importing household furniture from China, your best source of information on this topic would be to contact a customs broker.

How customs duty is calculated in India

Ex: Customs duties in India on Furniture taken from abroad

Furniture from Malaysia is currently quite popular in India and being widely sold. For the benefit of readers who are planing on taking furniture to India from abroad and wish to get an idea on the customs duties they may have to pay in India, here is an example: Suppose wooden furniture (the type used in bedrooms etc.) has a CIF* Value Rs. 100,000 is taken to India. Generally the duties charged in India would be: • *Cost of item + Insurance + Freight (CIF) = 100000.00 • Assessable Value (CIF Value + 1% of CIF as Landing Charge) = 101000.00 • Basic duty 10% (charged on Assessable value) = 10100.00 • CVD - Additional Duty 12% (charged on Assessable Value 101000.00 + Basic duty 10100.00) = 13332.00 • Central Excise Education Cess 3% (charged on CVD Additional duty) = 399.96 • Customs Education Cess 3% (charged on basic duty 10100.00 + CVD 13332.00 + Cent Excise Ed Cess 399.96) = 714.96 • Special CVD duty 4% (charged on Asses Val 101000 + Basic duty 10100.00 + CVD 13332.00 + Cen Ex Edu Cess 714.96) = 5021.88 • Total customs duty payable = 10100.00 + 13332.00 + 399.96 + 714.96 + 5021.88 = Rs. 29,568.80 The above example is to give a general idea of how customs duties are calculated in India. Rules and rates of customs duties can be changed by the authorities from time to time. Your best source of current information when importing anything to India is the CBEC or a customs broker.