Introduction to Customs Act of India
Customs duties are payable on every piece of furniture imported into India from China or elsewhere in the world. The Indian Customs Act of 1962 stipulates how much duty is payable on imported furniture.
A common man thinks of sofa, dining table, curtains, lights, tableware, floor tiles, lights and decorative products as furniture. Unfortunately, there is no general provision in the Indian Customs Act to classify all household goods as furniture. The Customs Act defines each item as per “International Trade Classification - Harmonized Code” (ITC-HS) and assigns the rate of duty payable for it. They are logically arranged as Chapters drilled down to specific sub-headings within those chapters. Here is a list of common furniture and their broad chapter headings.
A common man thinks of sofa, dining table, curtains, lights, tableware, floor tiles, lights and decorative products as furniture. Unfortunately, there is no general provision in the Indian Customs Act to classify all household goods as furniture. The Customs Act defines each item as per “International Trade Classification - Harmonized Code” (ITC-HS) and assigns the rate of duty payable for it. They are logically arranged as Chapters drilled down to specific sub-headings within those chapters. Here is a list of common furniture and their broad chapter headings.
Classification of home furniture
Chapter 94 - Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included;
Chapter 91 - Clocks and watches and parts thereof
Chapter 82 - Cutlery, spoons and forks, of base metal
Chapter 70 - Glass and glassware
Chapter 69 - Ceramic products
Chapter 57 - Carpets and other textile floor coverings
Chapter 46 - Manufactures of straw, of esparto or of other plaiting materials; basket ware and wickerwork.
Chapter 44 - Wood and Articles of wood
Chapter 91 - Clocks and watches and parts thereof
Chapter 82 - Cutlery, spoons and forks, of base metal
Chapter 70 - Glass and glassware
Chapter 69 - Ceramic products
Chapter 57 - Carpets and other textile floor coverings
Chapter 46 - Manufactures of straw, of esparto or of other plaiting materials; basket ware and wickerwork.
Chapter 44 - Wood and Articles of wood
Understanding the value of imported furniture as per Indian Customs act of 1962
People may think that the price paid in China or elsewhere for furniture is the value of the import, but the officers of the Customs department have another idea about it. As per international trade practice the value of the imported goods includes the cost of goods, freight, insurance and any other expense incurred in importation. In the Custom’s lingo, it is known as the CIF value of the goods. The Customs duties are levied on ad valorem basis on the assessable value of the imported goods calculated at exchange rate published by the customs department via public notice.
For example:
Price paid for furniture in China $30000
Local charges for packing, consolidation, quality check, handling and shipping services @5% $1500
Freight $4000
Insurance charges of above total $500
Landing Charges (as per Indian custom’s Act) $360
Total assessable value as per Customs Act $36360
For example:
Price paid for furniture in China $30000
Local charges for packing, consolidation, quality check, handling and shipping services @5% $1500
Freight $4000
Insurance charges of above total $500
Landing Charges (as per Indian custom’s Act) $360
Total assessable value as per Customs Act $36360
One may notice that a purchase of US$ 30000 is considered as value of US$36360 which is almost over 20% of the actual purchase price. Sadly, that’s how the Customs department in India or elsewhere calculates the value of the imported goods. Indian Customs levies a duty @44% on most of the furniture A detailed calculation is given below.
Example of customs duty calculation payable in India
It is very important that you declare the actual classification of goods along with value while filing documents with the Customs Department for clearance of goods. A mistake will be considered as a wrong declaration is a punishable offense and the penalty can be 300% of the duty payable or imprisonment or both.
The government of India periodically adjusts custom and other taxes on import hence actual duty payable at the time of import may be different from calculator given below which is last updated in July 2019.
The government of India periodically adjusts custom and other taxes on import hence actual duty payable at the time of import may be different from calculator given below which is last updated in July 2019.
Calculator for estimate only. For accurate calculations or more details contact us.
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