Import Procedures

Dr. Jayaraj RProcedures for Imports1How to Import -Introduction Governed by the Foreign Trade (Development & Regulation) Act, 1992With the globalization of Indian economy and consequent upon comfortable balance of payment position, Government of India has liberalized the Import Policy and practically all Controls on imports have been lifted.Imports may be made freely except to the extent, they are regulated by the provisions of Import Policy or by any other law for the time being in force.

2Principal Law & Import Export Policy

Imports in to India are governed by Foreign Trade (Development & Regulation) Act 1992. Under this Act, imports of all goods is Free except for the items regulated by the policy or any other law for the time being in force. By the Foreign Trade (Development & Regulation) Act 1992 the Government has issued the following Rules & Order: Foreign Trade(Regulation)Rules, 1993, provide for grant of special license, application for grant of license, fee, conditions for licenses, refusal of license, amendment of license, suspension of a license, cancellation of license, declaration as to the value and quality of imported goods, declaration as to the Importer- Exporter Code number, utilization of imported goods, provisions regarding making, signing of any declaration/statement or documents, power to enter the premises and inspect, search and seizure of goods, documents, things and conveyance, settlement, confiscation (Elimination) and redemption and confiscation of conveyance. 3Notifications and Circulars

The Import - Export Policy and Procedure books issued by the Government are amended/clarified/ explained by the Ministry of Commerce from time to time. The types of Notifications/Clarifications/Instructions issued by the Ministry for this purpose are: Public Notices. Notifications Policy Circulars

4Select the commodity/Product you wish to importBe aware of the import potential and the commercial viability of the commodity/product. Check whether the items of your interest fall in the Restricted list of ITC(HS) Indian Trade Classification (Harmonized System) Classifications of Exports & Imports items. Prohibited items are not permitted to be imported at all. List of Prohibited items of import are detailed below: Tallow(hard fat), Fat or Oils rendered (caused), un rendered or otherwise of any animal origin, animal rennet (food) and wild animals including their parts and products and any part and products, including ivory(tusks & teeths). For import of items appearing in Restricted list you need secure import license. Third category of items comes under the Canalised list of items. Import of items included in Canalized d list are permitted to be imported through Canalizing Agencies (Maharashtra Agricultural Marketing Board and the Gujarat Agro Industries Corporation for onion exports). Thus items not appearing in Prohibited list, Restricted list and or in Canalised list can be imported Freely without any import license. A large number of Consumer goods are freely importable without license.

5Registration with Regional Licensing AuthorityRegistration with Regional Licensing Authority (DGFT)is a pre-requisite for import of goods. The Customs will not allow clearance of goods unless:The importer has obtained IEC (Importer Exporter Code) Code Number from Regional Licensing Authority. However, no such registration is necessary for persons importing goods from/ to Nepal provided Value of a single Consignment does not exceed Rs. 25000/=

6Obtaining IEC (Importer Exporter Code)Code NumberAn application for grant of IEC Code Number duly signed by the applicant should be supported by the following documents: Bank Receipt (in duplicate)/demand draft for payment of the fee of Rs.1000/-A copy of Permanent Account Number issued by Income Tax Authorities, if PAN has not been allotted, a copy of the letter of legal authority may be furnished. If there is any non-resident interest in the firm and NRI investment is to be made with repatriable benefits ( deposit in domestic banks at tax free interest), full particulars thereof along with a photocopy of RBI's approval. If there is NRI investment without repatriation benefit, a simple declaration indicating whether it is held with the general/specific permission of the RBI on the letter head of the firm should be furnished. In case of specific approval, a copy may also be furnished.

7Import Policy

For items not mentioned as Prohibited, Restricted or Canalised List for import in ITC(HS) Classification of Export and Import items; import of such items are freely permitted. There is no need to obtain any license or permission for importing such goods. The ITC(HS) Classification of Export and Import items contains 99 chapters and in each chapter there are column heading covering Exim Code, items description, policy and nature or restriction. The information related to import policy for any item can be obtained from site under Customs Duty Calculator Schedule.

8Procedure to be followed for grant of import licenseAn application for grant of an import license for import of the items mentioned as restricted for import in ITC(HS) Classification of Export and Import items may be made to the regional licensing authority concerned.

9Fees for License Application:

Every application for import license or CCP (Customs Clearance Permit ) should be accompanied by 2 copies of a bank receipt from the Central Bank of India or a Bank Draft from any Bank indicating the deposit in accordance with the prescribed scale of fees. Rs. 200 where the value of goods specified does not exceed Rs. 50,000. Rs. 2 per thousand or part thereof subject to a minimum of Rs. 200 and a maximum of Rs.1 lakh 50 thousand, where the value of goods exceeds Rs. 50,000. Rs. 200 where Application is filed be SSI units where the CIF(cost insurance and freight) value of goods specified in the application does exceed Rs. 2 lakh. Rs. 200 where application is for grant of duplicate license.

10Validity of License

Besides import license for import of restricted items there are other variety of licenses and such licenses have different period of validity. Export Promotion Capital Goods License validity 24 months Customs Clearance Permit " 12 months DEPB(Duty Entitlement Passbook) " 12 months Advance License/Special Imprest License/Advance authorization scheme (A special imprest license is given to manufacturer exporters for the import of inputs required in the manufacture of goods to be supplied to the deemed export categories ) (Deemed exports refers to those transactions in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian rupees or in free foreign exchange)For Project/Turnkey Project "18 months or co-terminus with the contracted duration of the Project For the cases where the license expires before the last day of the month, the license shall be deemed to be valid until the last day of that month. Coterminus: Two or more agreements or contracts (such as leases) so linked that both expire or terminate at the same time

11Revalidation of License:License revalidation can be done on merits but not beyond 12 months by the concerned licensing authority for a period of six months at a time considered from the date of expiry of the validity period.

12Conditions of LicenseThe license for import is taken into consideration provided: the goods covered by the license shall not be disposed of except in accordance with the provisions of the EXIM Policy, 1997-2002 or in the manner specified by the licensing authority in the license; the applicant for a license shall execute a bond for complying with the terms and conditions of the license.13It shall be deemed to be a condition of every license for import that no person shall transfer or acquire by transfer any license issued by the licensing authority except in accordance with the provisions of the Policy; the goods for the import of which a license is granted shall be the property of the licensee at the time of import of which a license is granted shall be the property of the licensee at the time of import and up to the time of clearance through the Customs; the goods for the import of which a licensee is granted shall be new goods, unless otherwise stated in the license; the goods covered by the license for import shall not be exported without the written permission of the DGFT.

14Disposal period for import applicationProvided the application is complete in all respects along with prescribed documents, the applicant-importer can expect the disposal in: IEC No. - 3 working days Duty free license where input-output norms(standard norms which define the amount of inputs required to manufacture a unit of output for export purpose.) are notified - 5 working days Duty free license where input-output norms are notified but cases are to be placed before -15 working days Duty free license where input-output norms are not notified, EPCG licenses/export licenses/export licenses/specific import licenses - 15 working days Revalidation of license and extension of export obligation period by - 5 working days Acceptance of Bank Guarantee/Legal undertaking - 3 working days Redemption of Bank Guarantee/Legal undertaking/Endorsement of Transferability - 10 working days Issuance/renewal of Export House/Trading House/Star Trading House/Super Star Trading House - 15 working days Amendment of any category of license - 5 working days - 7 working days Fixation of Standard input-output norms - 45 working days DEPB (Duty Entitlement Passbook )- 5 working days All licenses falling under Chapter 8 - 5 working days Miscellaneous - 15 working days Fixation of deemed exports drawback rate - 45 working days

15Imports under Special Scheme for Exporters The Govt. of India has framed the certain schemes to promote exports.

16Export Promotion Capital Goods SchemesCapital goods including fixtures, dies and moulds may be imported at a concessional rate of customs duty. Subject to an export obligation to be fulfilled over a period of time. In addition spares up to 20 per cent of the cost insurance and freight (CIF) value of the capital goods may also be imported under the scheme. Under this scheme Customs duty is 5% if the export obligation is 5 times the CIF value of the capital goods or 4 times the CIF value of capital goods. The period of fulfillment of the export obligation is 8 years reckoned from the date of issuance of license.

17Duty Exemption Scheme

Duty exemption schemes enable duty free import of inputsSchemes required for export production. Duty Exemption Schemes consist of (a) Advance Authorisation scheme (free import of inputs required for export production.) and (b) Duty Free Import Authorisation (DFIA) scheme. A Duty Remission Scheme enables post export replenishment (replacement) / remission (reduction) of duty on inputs used in export product. 18Advance Release OrderA duty free license holder except Advance Intermediate License Holder intending to source the inputs from indigenous sources/canalising agencies/EOUs/SEZ/EHTP/STP units in lieu of direct imports has the option to source them against Advance Release Order (ARO) denominated in foreign exchange/Indian rupees. In such cases, the license is invalidated for direct import and permission in the form of ARO is issued which will entitle the supplier to the benefits of deemed exports. Back to back inland letter of credit: This is an alternative to ARO. For this the duty free license holder intending to avail such facility may approach a bank for opening an inland L/C in favour of an indigenous supplier. Before this the bank will ensure that necessary bank guarantee or Letter of Undertaking has been executed by the license holder and endorsement to this effect has been made on the License.

19Hints/Suggestion for finalization of import order/contract:Selecting the Overseas Supplier: Imports can be made from any country of the world. The information regarding overseas supplier can generally be obtained from the following sources: Trade Directories and Yellow Pages, like Singapore yellow pages, Japan yellow pages, USA yellow pages etc. available from leading booksellers in India including. Consulate Generals and Trade Representatives of various countries in India and abroad. Friends and relatives in foreign countries. International Trade Fairs and Exhibitions for which you may contact: International Trade Promotion Organisation(ITPO),Pragati Maidan, New Delhi. Chamber of Commerce. Directorate of Industries, etc. Indenting Agents of Foreign Suppliers.

20Capability and Creditworthiness of Overseas SupplierSuccessful completion of an import transaction will mainly depend upon the capability of the overseas supplier to fulfill his contract. The credit worthiness of the overseas supplier, his capacity to fulfill that contract, etc. should, therefore, be properly verified before entering into a contract with him. Confidential reports about the supplier may be obtained through the banks and Indian embassies abroad. Reputed overseas suppliers normally have their Indenting Agents with offices in India and contract can also be finalized through them for smoother operations.

21Mode of Pricing and INCO TERMS

The importer can also take the assistance of Credit Information Agencies for specific commercial information on overseas suppliers. They may also contact Trade Information Centres of the country concerned. While finalizing the terms of import contract, the Importer, should, inter alia, be fully conversant with the mode of pricing and the manner of payment for the imports. As regards mode of pricing, the overseas supplier normally quote the terms prevailing in international trade. 22The importer for his benefits should know the meaning of the technical terminology. To avoid ambiguity in interpretation of such terms, International Chamber of Commerce, Paris, Has give detailed definition of a few standard terms popularly known as 'INCO TERMS'.

23Ex-work :'Ex-work' means that the seller's responsibility is to make the goods available to the buyer at works or factory. The full cost and risk involved in bringing the goods from this place to the desired destination will be borne by the buyer. This terms thus represents the minimum obligation for the seller. It is mostly used for sale of plantation commodities such as tea, coffee and cocoa. Free on Rail (FOR)/Free on Truck (FOT): These terms are used when the goods are to be carried by rail, but they are also used for road transport. The seller's obligations are fulfilled when the goods are delivered to the carrier. Free Alongside Ship (FAS): Once the goods have been placed alongside the ship, the seller's obligations are fulfilled and the buyer notified. The buyer has to contract with the sea carrier (transporter or shipper) for the carriage of the goods to the destination and pay the freight. The buyer has to bear all costs and risks of loss or damage to the goods hereafter.

INCO TERMS 24Free on Board(FOB): The seller's responsibility ends the moment the contracted goods are placed on board the ship, free of cost to the buyer at a port of shipment named in the sales contract. 'On board' means that a Received for Shipment' Bill of Lading (A bill of lading is a document acknowledging the receipt of goods )is not sufficient. Such B/L if issued must be converted into 'Shipped on Board B/L' by using the stamp 'Shiped on Board' and must bear signature of the carrier or his authorized representative together with date on which the goods were 'boarded'. 25Cost and Freight (C & F): The seller must on his own risk and not as an agent of the buyer, contract for the carriage of the goods to the port of destination named in the sale contract and pay the freight. This being a shipment contract, the point of delivery is fixed to the ship's rail and the risk of loss or of damage to the goods is transferred from the seller to the buyer at that very point. As will be seen though the seller bears the cost of carriage to the named destination, the risk is already transferred to the buyer at the port of shipment itself.

Cost Insurance Freight (CIF): The term is basically the same as C & F but with the addition that the seller has to obtain insurance at his cost against the risks of loss or damage to the goods during the carriage.

26Payment against imports Payment under letter of Credit is a universally accepted mode of payment. A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. The bank also acts on behalf of the buyer (holder of letter of credit) by ensuring that the supplier will not be paid until the bank receives a confirmation that the goods have been shipped. A Letter of Credit is a Signed instrument and an undertaking by the banker of the buyer to pay the seller a certain sum of money on presentation of documents evidencing Shipment of Specified goods subject to Compliance with the stipulated terms and Conditions.

27Parties to a Letter of CreditFollowing persons are generally parties, to a letter of Credit: Beneficiary : The exporter of goods in whose favour the L/C has been established. Customer/importer : The person we intends to import the goods and instructs bank to established Letter of Credit. Issuing Bank: The Banker in the importers Country who opened the L/C. Correspondent Bank or Advising Bank: The banker in the exporters country, who is authorized by the issuing bank to advise the beneficiary of the Credit and to effect such payment or to accept and pay such bills of exchange or to negotiate against Stipulated documents and on Compliance of Stipulated terms and condition specified by the importer on the exporter. Confirming Bank: The banker in the exporters(beneficiary) country, who at the desire of the beneficiary adds confirmation to the letter of Credit so that beneficiary can get payment without recourse from the Confirming bank. The Confirming bank may be correspondent bank itself or some other bank. 28Letter of Credit vs. Bank Guarantee A letter of credit differs from a bank guarantee.

Bank Guarantee is a guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it.

A commercial credit is neither a performance bond, nor it is a guarantee of the quantity or quality of the goods shipped.

29A contract for sale of goods between the seller and the buyer incorporates mode of settlement. Letters of credit by their nature are separate from the sale contract, and banks are not concerned or bound by such sale contracts even if the credits bear reference to them. The credits stipulate documents which have to be tendered for payment and it, therefore, follows that in credits parties deal with documents and not with goods, services or performances to which the documents relate. It is, therefore, in the interest of all the parties concerned that the conditions and terms of credit are complete and precise and banefit of excessive details. The seller(beneficiary) cannot take advantage of any contractual terms in between the buyer and the opening bank and between the opening bank and the advising/confirming bank.

Letters of Credit are Separate Transactions 30Uniform Customs and Practice for Documentary Credit In the course of time, a number of practices, expressions and terms have evolved between banks dealing with documentary credits. To ensure uniformity of interpretation in international trade, the International Chambers of Commerce in Paris has worked out the "Uniform Customs and Practice for Documentary Credit". These have been revised and brought up to date several times in the past. The latest in the line of revisions is the UCP 500 (w.e.f. January 1, 1994) which updates and consolidates the previous UCP 400. They are now applied by the banks in nearly all countries including India.

31Precautions to be taken at the time of establishing Letter of Credit Letter of credit offers almost complete protection to the seller but the buyer is put to many disadvantages and has to make payments against documents only. Before agreeing to open a letter of credit in favour of the seller, the opener must be satisfied with the creditworthiness and general reputation of the seller. Entire success of an L/C transaction depends on proper conduct of the seller.Confidential report on the seller must be obtained at the time of first transaction with him. 32Letter of credit also does not offer any protection for the quality/quantity of goods supplied under the L/C. It would, therefore be necessary to know the nature of goods and specify submission of quality reports/inspection reports from an independent agency to ensure receipt of goods of proper quality. It is necessary that complete and precise information must be given in the L/C application form specifying therein the description, unit rate and quantity of the goods covered under L/C and details of documents required in absolute clear and unambiguous terms. The reference to underlying sale contract must be avoided as far as possible. The L/C application must nevertheless contain all the required/information based on which L/C could be opened by the bank.

33Import contract may be concluded either in terms of INR or in foreign currency. Where the contracts are in INR, the related documents are also prepared in INR and no conversion is involved. However, where the bill is drawn in foreign currency, the payment is made in Indian rupees equivalent to the foreign currency. The equivalent rupee value is arrived at by applying suitable exchange rate. These rates are applied by banks to standardise the foreign exchange-rupee conversion process. When the price of foreign currency is quoted in terms of home or local currency it is called direct quotation basis.. However, there is a difference between inter-bank exchange rates and merchant rates.34Merchant rates are the exchange rates applied by the bankers for transaction with their customers for various purposes, including imports and exports. These rates are calculated by the banks as per the guidelines issued by the Foreign Exchange Dealers Association of India (FEDAI). Inter-bank rates are the rate for transactions amongst the authorized dealers in foreign exchange and depend on the market conditions. Since exchange rates are volatile, documents delivered by the bank at the time of a favourable exchange rate( high value) will enable the Indian purchaser to pay less of Indian rupees. Forex rates are always quoted as two way price i.e. at a rate at which the bank is willing to sell foreign currency(buying rate) and at a rate at which the bank is willing to buy foreign currency(selling rate). There is always some difference in buying and selling rates. However, the maximum spread available to bank is restricted in terms of ceiling imposed by RBI. All exchange rates by authorized dealers are quoted in terms of their capacity as buyer or seller.

35TT(Telegraphic Transfer) Selling Rate This rate is applied for all clean remittances (payment) outside India. For selling foreign currency to its customer by the bank such as for issuance of bank drafts, mail/telegraphic transfer etc. TT(Telegraphic Transfer) Buying Rate This rate is applied for purchase of foreign currency by banks when the banks in India have already obtained the cover in India. Thus all foreign inward remittances (transfer of funds) which are made payable in India are converted by applying this rate. A mail transfer issued by a bank in Dubai for US $ 10,000 drawn on any commercial bank having branch at the overseas destination will be converted into rupees at TT buying rate. Reading Rates-The rates announced by the banks every day morning are card rates. Or announced by news papers etc.36Reputed importers can always bargain with the bank for improvement in the card rates for reducing their rupee liability on conversion of foreign currency into Indian rupees. Also a distinction is made between spot rates and forward rates. Spot rates are applicable on the day of transaction, whereas forward rates are fixed in advance for a transaction that will mature at a specified date or during a specified period in future imports.

37Hedging against Forex risk: Exchange risk arising on account of adverse movement of the exchange rates, can be avoided by the following methods: By requesting the supplier to invoice the goods in Indian rupees (possible only when the seller agrees to it) By entering into a forward exchange contract.

38What is Forward Exchange Contract?

Aspecialtype of foreign currency transaction. Forward contracts are agreements between two parties to exchangetwo designated currencies at a specific time in the future.These contractsalways take place on a date after thedatethat the spot contract settles, and are used to protect the buyer from fluctuations in currency prices.Forward contracts ordinarily takes place within ten days of the transaction date.They cannot be canceled except by the mutual agreement of both parties involved. The parties involved in the contract are generally interested in hedging a foreign exchange position or taking a speculative position.

39Hedging against Forex riskThis involves booking of forward exchange contract with the bank of the importer.For booking forward contract the importer should approach his bank with which an L/C has been opened. The bank will book a forward contract only against genuine trade transaction.The bank will verify suitable documents to ensure the authenticity and the amount of permitted currency of the underlying transaction.40The amount, date and number of the forward contract will be marked on such documents under the stamp and signature of the bank to ensure that more than one forward contract is not booked in respect of the same underlying transaction. A transaction may be covered either in parts or in whole. The period and extent to which an exposure is to be covered is left to the choice of the customer. If the documents of import are not received within the agreed period of the contract, the contract needs to be cancelled(an fresh contract booked if desired) for which the bank will levy cancellation charges as per FEDAI rules. In case the documents are received before the stipulated date and the importer wants early delivery, the bank will again levy charges for early delivery, as per FEDAI rules.

41The importers should be careful in choosing the period of forward contract. Otherwise early delivery or cancellation of forward contract would lead to unnecessary charges. The RBI allows substitution of an import order on specific request provided the bank is satisfied with the circumstance leading to the non-performance of the contract. Where the documents are under a contract(Non-L/C case), the seller will submit the complete set of documents to his banker with the request to either purchase/discount the documents or same on collection basis to the importer. In the former case the seller's bank finances the sellers whereas in the latter case, no financial facility is extended to the overseas seller. The seller's banker may advance some money against documents sent on collection basis while, treating the documents as collateral(guarantee) security. 42When the documents are under L/C, the documents are prepared strictly in conformity with the letter of credit. After preparing the documents the overseas seller will tender the documents to his banker for negotiation. The bank, after receiving the documents, will examine them to ensure that they are strictly drawn as per the terms of the credit. Following this the overseas banker will send the documents to the importer's banker in India. The importer's bank will advise the importer to collect the shipping documents either against payment or acceptance as per the terms of the contract.

43In case the documents are drawn under L/C, the issuing banker(of the overseas supplier) will examine the documents and if found in order it will hand over the same to the importer after debiting his account with amount involved or against acceptance as per the terms of the credit. If the documents are not in line with the terms of the credit, the overseas banker can either refuse to negotiate further and ask the seller to send them on collection basis only; or it can contact the importer's bank(in the buyer's country) for authorization; or it can also make payment under the reserve against seller's indemnity (compensation)

44Procedure to be followed for grant of import license:Scrutiny of documents This is a very important function and this should be done with great care. After receiving the document from the overseas supplier's bank, the importer's bank will scrutinise them to verify the extent of correctness as per the terms of the L/C. For discrepancies in the documents following principles are adopted: Certificate of origin It is issued by the authority stipulated in the L/C The description of goods agrees with that in the invoice

45Checking other documents All other documents stipulated in the L/C are verified They are issued by the authorities specified in the L/C They contain the details as required by the L/C For matter relating to Documentary Collections and Commercial terms, the importers are likely to be conversant with the brochures issued by the International Chamber of Commerce(ICC), Paris. Following are the brochures: Uniform Customs and Practice for Documentary Collection and Commercial Terms Uniform Rules of Collections (ICC522) Uniform Rules for a Combined Transport Document (ICC298) INCO Terms 1990 RBI regulations for Making Payments by importers

46Customs Clearance of imported goods Customs Authorities and the Clearing agents play the key role in the import of goods. All goods imported into India have to pass through the procedure of Customs clearance as they cross Indian border. The goods are examined, appraised, assessed, evaluated and then allowed to be taken out of charge of the Customs for use by the importer. The entire process of customs clearance is complex and to carry out this procedure smoothly, the help of accredited customs clearing agents has to be taken. 47The importers need to present a Bill of Entry on receipt of the advise of the arrival of the vessel. The B/E is noted in Import Department, with corresponding endorsement made against the consignment entry in the IGM along with the date. (The shipping line has to give a detailed report of all the goods on board in a report known as "Import General Manifest) The B/E will then be presented in the Appraising Department with all the relevant documents like invoice, Bill of Lading, Import license and catalogue literature.

48Custom Authorities There are two main wings of Customs House. In the 'Appraisement' wing the job of collection of revenue is assigned, while the 'Preventive' one aims at prevention of smuggling. The Customs authority functions under the Ministry of Finance (MoF) with the Central Board of Excise & Customs at the apex. The board is headed by a Chairman and assisted by Members.

49The Members (Customs) looks after the following matters:Classification of Customs tariff The basic legislation is the Indian Customs Act, 1962 read with Customs Tariff Act, 1975. Section 12 of the Customs Act,'62 empowers levy of duties on goods imported into or exported from India. However, the rates at which the different import export duties shall be leviable have been respectively specified in the First and Second Schedule to the Customs Tariff Act, 1975-called the import Tariff and Export Tariff respectively. With effect from Feb. 28, 1986, the new tariff import schedule based on international convention of Harmonised Commodity and Coding system, commonly known as Harmonised Coding System came into being. 50Import through Courier As laid down by the current foreign trade Policy, import of goods through courier is permitted in accordance with the Courier Imports & Exports (Clearance) Regulations, 1998. If the CIF value of the consignment imported does not exceed Rs.100000, the relative Bill of Entry is required to be filed by the registered courier service. If the CIF value is Rs.100000 or more, importers are to file separate B/E as in the case of other imports. 51Import of Samples Bona fide technical and trade samples of items, even those in the restricted in ITC(HS)Classifications of Export and Import items is allowed without a license for a value not more than Rs. 1 lakh(CIF).

Prototype (trial or model products) import This may be allowed on payment of duty without a license to an actual user, industrial engaged in the production of or having industrial license/LoI or research, as the case may be, provided the number of items imported does not exceed 10 in number in a year.

52Passenger Baggage Under the Rules various kinds of articles can be imported up to certain value limit depending upon the duration of stay of the passenger abroad and on the basis of Resident and Non-Resident Status of the passenger. Passenger Baggage Rules and import duty structure for baggage as applicable for such imports under the Baggage Rules has been given separately

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