Union Budget 2016-17 revealed the substitution of the existing Baggage Rules 1998 with Baggage Rules 2016; a new set of rules that aims to simplify and rationalise duty-free allowance. The changes will be put to effect from April 1. Presenting the changes in the Parliament, Finance Minister Arun Jaitley said, “Customs baggage rules for international passengers are being simplified to increase free baggage allowance. The filing of baggage declaration will be required only for those passengers who carry dutiable goods.”
The new rules dictate an increase of duty free baggage allowance carried by an international passenger when coming to India. The initial and current allowance of Rs 45,000 has been given a Rs 5000 raise. The change results in customs duty saving of approximately Rs 1800 for the international passengers.
Restrictions on age and the minimum period of stay abroad has been withdrawn. While free baggage allowances are same for all passengers irrespective of their age and period of stay, personal effects for infants shall be allowed duty free. Minimum period of stay has not been mentioned. Changing the limitations for people bringing back used personal household items, the new rules say that:
- Passengers who have stayed abroad for 3-6 months can bring used personal household items up to the value of Rs 50,000.
- Those who stayed abroad for 6-12 months can bring used personal household items up to the value of Rs 100,000.
- Those who stayed abroad for 1-2 years can bring used personal household items up to the value of Rs 200,000.
- Those who stayed abroad for more than 2 years, can bring used personal household items up to the value of Rs 500,000. (However, this is subject to conditions)
International passengers need not fill Customs Declaration Form if they are not carrying dutiable goods as part of their baggage- a proposal that will enable hassle free entry for international passengers in India. Duty-free allowance of cigarettes, cigars, and tobacco has been doubled. The approved limitations are now of 200 sticks of cigarettes, 50 cigars and 250 gm tobacco. Considered major security risk, drones are now a part of the prohibited list. Flyers entering the country will be required to declare them. Duty free allowance for foreigners has been increased to Rs 15,000.
Indian Airport Customs Duty on Gold Import, 2016
Indians buy gold from abroad due to the comparatively lower prices and, the superior quality. As per customs, Indian passengers who have been residing abroad for over one year are allowed to bring jewellery, free of duty in his/her bonafide baggage. A male passenger can bring 20 grams that is subject to maximum value of Rs 50,000. A female passenger can bring 40 grams, subject to maximum value of Rs 100,000. The allowance only sticks to gold jewellery, the metal, in any other form is subject to duty.
Discounted duty payable is 10.3 per cent for those who stayed abroad for 6 months. An Indian passport holder who has lived 6 months outside the country continuously, can bring in up to 1 kg of gold. All gold jewellery is exempt from duty if the passenger exiting the home country duly declares it and secures an export certificate at the airport customs desk.
