How to import samples of goods, machinery in India
Samples of goods created in one country have been sent to another country to be presented or demonstrated for consumer appreciation and familiarisation in order to solicit orders for goods to be provided in international trade. India is also a signatory to a convention from 1952 that makes it easier to import commercial samples and advertising materials. The notifications in this regard allow duty-free import of authentic commercial samples into the nation, allowing for normal commerce flow. It is not, however, a way to avoid paying Customs Duty by importing samples in smaller numbers over and over again.
Import Samples in India
Commercial samples are essentially samples of items that may be imported into India by traders or representatives of foreign manufacturers in order to learn about their qualities and applications, as well as to assess their marketability in the country. Consumer items, consumer durables, technical prototypes, or even high-value equipment, machineries (including agricultural machinery), and their accessories are examples of samples. However, products prohibited under the Foreign Trade (Development and Regulation) Act, 1992, such as wild animals, wild birds, and parts of wild animals and birds, ivory, rifles and ammunition, and narcotic narcotics, are not authorised to be imported as samples.
Who can Import Samples in india
Trade, industry, individuals, companies, associations, research institutes, and laboratories can all import samples. These can also be carried in by foreign manufacturer representatives as part of their personal baggage, through port, or by courier. Manufacturers/Traders can also send them to the above-mentioned parties in India.
Value Limit for Import
Trade and Industry can import genuine trade samples as long as the goods have been provided free of charge. Individual samples should not exceed Rs.5000/- for duty-free clearance, and the total value of all samples should not exceed Rs.60,000/- per year or 15 units of samples per year. Prototypes of engineering goods, on the other hand, can be imported even if the value exceeds Rs.5000/-.
Such prototype items can be imported duty-free up to a value of Rs. 10,000/- if they are made useless as commodities through an appropriate method. If the value of the goods exceeds Rs. 10,000/-, they must be re-exported within nine months or such longer term as the Assistant Commissioner of Customs may permit.
The high-value samples are cleared after paying duty and providing a guarantee that they will be re-exported within nine months. When the machinery is exported back, the deposited duty is repaid. The value limit is increased correspondingly if more than one product is being imported into India. Similarly, if the samples are sent simultaneously through the same Port/Airport to several consignees by any foreign company, they would not be subject to tax if the value restriction of Rs.5000/- per unit is met. If the packages are clearly marked and addressed to distinct persons in India, consignments meant for distribution to separate parties in India can be imported together for transportation ease.
The amount of Rs.5000/- refers to the worth of the products in the nation of dispatch, except local refundable taxes such as VAT. Freight and transportation charges are not included in free samples worth Rs.5000/-. The freight and insurance charges will be applied to the duty due if the value exceeds Rs.5000/-.
How to Import Machinery samples in India
If the value does not exceed Rs.10000/-, machinery that are prototypes of engineering goods can be imported duty free, either for future manufacturing of the aforementioned goods or to be used as capital goods for export production or in conjunction with securing further export orders. Punching, cracking, marking with indelible ink, and other methods are commonly used to deface or render the goods unsellable. If the machinery is priced at more than Rs.10000/-, it is always subject to duty. The items can be cleared if the importer provides a bank guarantee (or) a deposit of the duty due, as well as an assurance from the importer that the products would be re-exported within 9 months of import.
Check Free Supply chain Courses – Click Here
Failure to re-export samples from India
Within 9 months, the samples must be re-exported. However, under exceptional circumstances, the Assistant Commissioner of Customs may extend the 9-month period for a further reasonable duration.
In addition to the above mentioned provisions/schemes, the following specific provisions/schemes are available for duty-free sample import:
(a) Samples of all types of items manufactured by the Units can be imported duty-free under the 100 percent EOUs, EPZ, and EHTP Schemes.
(a) Samples can also be imported for events sponsored by the Indian government, such as trade and industry exhibitions. These machines are being brought in via Carnet (Notification No.57/90).
(c) With the authorization of the Ministry of Commerce and the Indian Trade Promotion Organization (Notification No.3/89), samples can also be imported for private commercial exhibitions for display or demonstration.
(d) Samples of tourism equipment and ancillary commodities are authorised to be imported duty-free. (Document No. 113/57)
Follow us on – Facebook – https://www.facebook.com/Apicseduclub