Clarification relating to the import of gifts

To

All Principal Chief Commissioners/ Chief Commissioners of Customs.

Principal Commissioners/ Commissioners of Customs.

Subject: Clarification relating to the import of gifts.

Madam/Sir,

Please refer to the Notification 35/2015-20 dated 12.12.2019 issued by the Director-General of Foreign Trade, Department of Commerce, Ministry of Commerce and Industry.

2. Clarification has been sought by the field formations as regards the application of the said notification of DGFT and how the same has to be read with Notification 50/2017-Customs dated 30th June 2017, especially in relation to the exemption available for imports of bonafide gifts up to a CIF value of Rs.5000.00.

2.1 Reference has also been made to Instruction 9/2017-Customs dated 5th July 2017 raising the issue of difficulty in implementing the DGFT notification due to the said instruction.

3. The issue has been examined. 

4. DGFT Notification states as follows:

”Import of goods including those purchased from e-commerce portals, through post or courier, where customs clearance is sought as gifts, is prohibited except for life-saving drugs/medicines and Rakhi( but not gifts related to Rakhi).

Explanation:

1. Rakhi( but not gifts related to Rakhi) will be covered under Section 25(6) of Customs Act, 1962 reads that  ”… no duty shall be collected if the amount of duty leviable is equal to or less than Rs.100/-.
2.  Import of goods as gifts with payment of full applicable duties is allowed ”.

4.1 DGFT Notification effectively means that if goods imported through courier or post( be it e-commerce import or otherwise) as gifts seek the exemption available for import of bonafide gifts up to a CIF value of Rs.5000.00 vide SI No. 608A of Notification 50/2017-Customs dated 30th June 2017, then the imports will be prohibited. However, the goods imported as gifts can be allowed to import free (  i.e., without prohibition) on payment of full applicable duties. Since the goods imported as gifts would be personal imports, the full applicable duties will be as follows:

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