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How do i pay the custom duty charges when i import stuff in India?
Jus wanna know how the entire custom duty stuff work in India. Lets say if I place an order from a diff country and they ship it through fedex or ups. Who do I pay the custom duty to? The Vendor or the Fedex folks?
5 Answers
- 1 decade agoFavorite Answer
DJ Sam, interesting question, but just because the way you describe it. Also, I think this issues works almost the same way worldwide, not only in India.
Let's see it step by step.
The duties or taxes from international commerce are usually paid at the moment of import by the "importer" (which is who introduces a product or good to a country which protects its industry or related industries), this you can call it "incoming-duty". In very few situations the seller/ "exporter" pays because sending a product or good; as a out-going duty.
Now, about the duties/ taxes owner. Its clear, who legally own the amounts collected as international commerce duties/ taxes? That is simple to answer, the government of the receiving country.
But also...
If you use a courier company (as FedEx) for bring a product to you (in your own country) it makes you the "importer" and as importer you must achieve some regulations, conditions AND PAY some given duty/ tax amount, depending on the characteristics and value of the good or product. In this case you are the one who pays TO FedEx (yes you give your money, covering the taxes, TO FedEx) which in this case just acts as a "government's intermediary" or "government's representative", because at the end FedEx will give the exactly amount you pay as "taxes" TO the government.
Of course, FedEx will charge you more than just taxes, that is their business.
I hope you find helpful this answer.
Bst rgds from Mexico.
Source(s): University degree on International Commerce and Business. Personal and professional experience. Currentrly working in a Customs Broker Agency. - Anonymous7 years ago
You need to pay custom duty charges to Custom authority. There are two ways to pay custom duty :
1. You directly pay to Custom authority by DD or online transfer.
2. You CHA or courier company first pay this amount by themselves and later they take this money from their client in India.
For more details please contact :
www.importexportpoint.com
- Judge JulieLv 71 decade ago
Sorry, duty is paid to government - not vendor or delivery service. Vendor sends you invoice - you pay vendor - vendor sends you notice of where your shipment can be picked up at depot -government makes out charges for duty, and when you pick up you pay duty. If otherwise, vendor may charge duty (like sales tax) and they add to your invoice (bill) - Its very complicated and varies by type of import & county of origin.
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- Anonymous5 years ago
LOLOLOL