Saturday, February 15, 2014

A Day in Indian Custom Office !!


It was my first day in India after staying long @ Canada. I would like to share my experience through this blog. This blog would be helpful also for those who want to send their excess luggage through cargo.

How to send luggage to India through Cargo 

Indian Custom Rates and Process to Clear custom on Personal Cargo Luggage:


Hi All,

If you have stayed long outside India and planning to return back, I am sure you must have lot of luggage. Now a days airlines are charging very heavy on extra baggage and so, sending extra luggage through cargo is a good and convenient option. Believe me, you will get many good deals and the sending process is online and very simple and can be completed in 2-3 hours (except dropping luggage @ predefine cargo location. You have to carry your luggage to cargo dropping point but again it would be just 10 minutes process @ dropping point). Many cargo companies would be ready to give very cheap rate if you have good weight (~ 50 KGs). As per my research, typical rate from US/Canada to India are somewhere from 8 $/Kg to 2 $/Kg. Also, see if you can merge your luggage with your friends (if they are travelling together) to get good rate.

The only thing to make a note is if you are sending things through Cargo then there will be proper custom check of your luggage and so you cannot except from Custom duty. So, please check custom duty rate carefully on what you are sending. 

Piece of advice would be do not send electronics through cargo (except large electronics items but now a days airlines also allows large items as check in so please explore those options) . As per my experience with Indian custom, any electronics which can fit on your check in bag, mostly you don’t have to pay custom!!

Sending old clothes, shoes, used household items are good examples of things which can be sent through cargo.

I was working in Canada and I shipped my 1 year old 55’ LED Smart TV through BA Cargo to Bangalore - India. I got this TV new on December boxing day and used for 1+ year before sending it through cargo. Reason for sending TV through was I had great vacation plan on my return trip and so didn’t want to carry TV throughout my trip. I would like to share my experience through this blog.

(Please note that this information/rate are effective on January 2014 and over the time it might change)

Indian Custom Rates:

Three categories:

     1.     TR (Transfer of Resident) – Here you are eligible for special Discount

Eligibility:
·        Minimum 2 Years of Stay Outside India
·        In last 2 Years, Total duration to Visit to India should be < 6 Months
·        No TR discount availed in last 3 Years

     2.     MTR (Mini Transfer of Resident) – As per my understating no Discount              on custom duty.

     3.     NTR (Non Transfer of Resident)  – No Discount


Rate of Custom Duty:

     1)    For TR Category:

·        Used Clothes, Used Books, Used Foot Wear – 0 %
·        Used Household Articles (As per Annex 3 of Appendix F) – 0 %
·        Electronics (Appendix ‘F’) – 15.45 %  (Note that TV and many large electronics are no more on this Category)
·        All other (New Articles, Cosmetic, Cosmetic, Food) – 36.05 %

     2)    For Other Categories (MTR/NTR):

·        Used Clothes, Used Books, Used Foot Wear – 0 %
·        All other – 36.05 %

P.S. – Custom duty will not depend on how old the items are and currency exchange rate when you bought the item. If the duty needs to pay, item will be considered new and current exchange rate would be used.


Process to Send Luggage through Cargo from US/Canada:

It’s simple. Go through various cargo website operated @ your location and also at Indian location where you want to send your cargo. For India, most of the cargo company delivers @ Bangalore, Delhi, H’bad, Mumbai and Kolkata. Keep the exact dimension and weight of the box/baggage with you. Call them and check if they operate for your location and destination. If yes, Give dimensions and weight and check rate. Pls Pls negotiate for rate. Initially they will say anything. Give some reference saying my friend got for so and so etc…Check for best rate. You can inquire with local travel agents also for good cargo deals.

If all good, ask them to send forms. They will send some 3 forms through Email. You needs to fill those form. You need to give CC authentication on that form. Scan those forms and send back to them. In some 2-5 hours, they will send AWB copy. Print it (4-5 copies). Go to Cargo destination mention on the AWB (if not mention, you can call/Email them and check) .It will be mostly near Airport. Deliver the baggage and take sign on one of the copy of AWB. They might check weight and dimension. For me they didn’t check. That’s it. All done. 


Process to Clear your Cargo Luggage from Custom Office – 'Bangalore':

Custom Office Working Duration: Mon – Fri (10 AM – 5 PM), Sat (10 AM – 2 PM), Holiday on 2nd Saturday of the month

Approximate Duration of Process to get the luggage out: 5 - 8 Working Hours

Piece of Advice from my side (Not Mandatory although):

·        Be @ custom office @ around 9 AM so that you would be able to get your luggage out on same day
·        If possible, do not carry any electronics (like laptop/Tablet) to the custom office. Mobile is Ok. Be as light as possible.
·        Put yourself as sender and receiver while sending the cargo. Go yourself to clear the cargo @ custom office.
·        Don’t ever talk about any bribery. Be gentleman. Look good educated NRI and show good respect to officer. As per my experience, they are good people, very helpful and friendly. Only thing is it would be “Indian” government office so there would be lot of paper work and you need to keep going from one table to another and you need to wait a lot as well as the officers would be busy drinking tea all time J. Put some good songs on your mobile and also do carry headphone.

What to carry to Custom Office:

·        ATM Card (Should have good cash)
·        Bank Cheque Book (If possible, SBI)
·        Original Passport
·        Around 5K INR Cash
·        Air Ticket with Boarding Pass (All Boarding Passes if you have multiple Transit) (5 Copies)
·        Copy of AWB – (5 Copies) (This is waybill. You will get once from cargo company while sending cargo)
·        Copy of your Passport - Font and Back ( 5 Copies)
·        Copy of the passport page where very recent arrival date stamped by Indian immigration (5 Copies) - If you don’t have these copies, you can take it from custom office as well.

High level, custom clearance process has below steps:

1.     Getting Delivery receipt from Cargo Company Office
2.     Meeting Supervisor and explaining case
3.     Filling Custom form and providing documents
4.     Inspection of your luggage with custom inspector in Warehouse
5.     Meeting Supervisor to finalize Chalan (Custom Duty) amount.
6.     Getting Chalan Copy.
7.     Getting DD from Bank.
8.     Providing Chalan Copy and DD to payment counter to mark status of Chalan as Paid.
9.     Getting Release letter from Custom Office by providing Chalan Paid receipt
10. Paying Warehouse Fees and getting Exit receipt by providing release letter
11. Taking out your Luggage from warehouse by providing Exit receipt

Please note that, Custom clearance of returning passenger’ baggage is called ‘Unaccompanied Baggage (Short as ‘UB’) Custom Clearance’ (Not ‘Import Cargo Clearance’ OR ‘Export Cargo Clearance’)

First thing first is, you will be notified on given number when luggage is arrived @ destination by Cargo Company. All cargo companies needs to submit arrived cargos to Indian custom warehouse immediately. Individual needs to take it out from this warehouse after custom clearance. You need to collect it within 24-48 hours. You may collect after 48 hours as well but custom office will charge warehouse charges (It’s not much. Details of these charges below).

Bangalore Custom office & Custom Warehouse are located very close (some 500m) to New Kempgowda International Airport. There are two twin custom building connected to each other from inside. They named as Menzies Aviation Bobba Cargo Terminal and Air India Cargo something….


This is website of Bangalore Custom Office. They have given good information here.
Vehicles would not be allowed inside these twin custom office. So you needs to park it outside. Entry for individuals would be only from Air India building. There would be proper security check and you will be issued visitor entry pass which you needs to carry throughout the day and show whenever you go from one building to another and vice versa.


On these twin buildings, there are mainly below offices:

·  Indian Custom Office (Menzies Building – 2nd Floor Unaccompanied Baggage (UB) Section) (
·  Offices of all cargo/airlines companies (some companies offices are in Air India building while others are in Menzies building. BA office is on Air India Building. You can inquire @ Security for your cargo company)
·  SBI Bank & ATM (Air India Building)
·  Xerox Counter (One in Air India Building GF near SBI Bank ATM, another in Menzies building GF but they both opens @ 11.30. If you need Xerox before that, go to your cargo company’s office and request them.)
·   Custom Warehouse (Air India Building)
·  Office to pay warehouse charges (Next to warehouse – Air India Building)

Approx Time for Security check: 5 Minutes

After doing security check, go to your airline/cargo company’s office (located on one of the twin building) and present AWB (Waybill Copy). They will ask you to give some 800 INR cash. They will prepare Delivery receipt and give it to you. They also give you some 10 copies of your AWB. (Not sure why!!) Ask them to print some 4 copies (Xerox) of delivery receipt. Request them saying Xerox office is closed currently and you need it for custom clearance. You can ask them to get copy of your Passport/other documents as well if you don’t have/missed.

Approx Time: 15 Minutes

<Optional>
You may now go to warehouse (Air India Building) to see your luggage. They might allow/might not. You can go to warehouse office (located next to warehouse) to check Warehouse charges (how much you need to pay).  Although, both of these is not mandatory.

Approx Time: 15 Minutes

Now, go to now Menzies building 2nd floor (Unaccompanied Luggage section). Wait for officers to come. They will come around 10.30 – 10.45. There is a lady superintendent age around 40-45. She is very helpful. You will be sent to her room. I heard there is one more inspector cum superintendent age around 45-50.

You need to describe your case on what you have on your luggage. She will ask you to fill form and provide necessary documents. Now you go out, fill simple one page form (front and Back). Local office security was very helpful while filling the form.

You need to submit the forms along with 3 copies of below documents:

·        Passport Front and Back + Arrived Date Stamp Page
·        AWB Copy
·        Delivery Receipt
·        Air Ticket

After submitting this form, wait…Inspector will come to inspect your luggage/baggage with some documents. You both will go to warehouse where he will inspect your luggage. He will ask to open to baggage and check/inspect everything. Make sure if you want to claim old items, it should looks old. If all good, he will put some notes on the form and say ok to you.

Now, you can go to same custom office where same lady superintendent will call you on her office. For me, I had TV and so, she asked me to give receipt. I din’t have original receipt but I had copy of it. If possible don’t make fake bill/receipt. She is smart and aware of TV/Electronics rates. If you make fake receipt (Not good), make sure you put reasonable amount of your item as she is aware of current rates. Also, if possible keep the bill on your name. I had original bill and fake bill but I decided to give original bill only.

She will do some calculation and finalize the Duty amount (Chalan). You may ask some questions to her and negotiate on exchange rate little. Although there are not much chances here.

Once amount is finalized, there are two options.

·  You can go to bank to get DD. (Here you don’t have to wait. You can go directly to get DD of same amount. Check on what names you have to get the DD and other details there)
·  Wait for Chalan Copy (Will take 30-40 minutes). Go to Bank and Pay by Cash. (Not advisable option as you have to wait and also bank will not get some reference number on computer and you have to wait @ Bank also few minutes/hours to get the number)

For me, getting DD from SBI took hell lot of time. They won’t accept Cheque from other bank so you need to pay Cash. Also, many times there DD machine won’t be working so you have to go Bank located just outside or SBM Bank which is located some 2 KMs from there. And Yes, the biggest problem would be, there will be long long queue. The day I went, there was some 100 long queue and I need to wait for 2 hours. After that, they said, give cash. I got cash from ATM and then they said our DD machine not working!! So, today no DD. I went just outside bank and there also DD machine was not working…

I went to custom office to get chalan copy so that I can pay by cash. I got chalan copy and went to SBI bank but @ Bank they said they didn’t get reference number on the computer system. Ask me to wait for some time as there was some N/W issue. I waited almost 1 hour but they didn’t get number. Finally I went out to SBM Bank (some 2-3 KMs from office) to get DD.

Although, that was just bad day as my friend went after few days. He didn’t get much trouble and got DD in some 15 minutes. Very easily.

Once you get DD, go to Menzies building GF office. They will ask you to get 5 copies of Chalan (Xerox) and put DD number on each form along with sign. Once you put, submit the DD to them and they will put ‘Paid’ stamp on each copy.

Now again go to custom office (Menzeis – 2nd Floor) Keep one copy with you and submit four copies to above custom office. They will take again some 30-40 minutes and give you release letter.

Once you get the release letter, go to warehouse office, handover the release letter along with warehouse fees (if anything needs to pay) and they will give you one more letter.

Now you can go to Warehouse office to take your luggage. If you need some taxi/vehicle, just inquire to warehouse. They will have many contacts for vehicles to deliver your luggage.

It’s done. You can bring your vehicle in it you have. Put your luggage on your car/vehicle and take it out.

See details of all the expenses I paid:


CAD
INR
Purchased Price
$1,548.00
INR 89,784.00
International Cargo Shipping (CAN - BLR/IND) + Service Fees
Volume Weight - 35 KG,
Actual Weight - 23 KG
$297.68
INR 17,265.44
Packing Material
$53.32
INR 3,092.56
Custom Duty (36 %)

INR 31,796.00
DD Fees

INR 120.00
Custom Delivery Receipt

INR 80.00
Warehouse Fees for 4 days Extra  (It’s as per actual weight)

INR 920.00
BA Delivery Receipt Fees @ BLR

INR 700.00












Total
INR 143,758.00
New TV Price (Same Model) in India
INR 218,900.00


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