Whether you want to send a gift to your family member or ship business-related items to India, either you or the recipient will have to pay duties and taxes for the parcel. Understanding how they are calculated when shipping to India can get a little confusing, but you can’t ignore the payment, or your package will get returned to the US. In this guide, we will explain what customs duties are and how they work when your package crosses the border.
Why Customs Duties Matter
Regardless of the destination, imported goods will always have to pass customs. During that process, authorities check the documentation, relevant sender and recipient information, contents, and values. When shipping to India, Indian Customs will evaluate your package to determine how much duty and tax will have to be paid.
Shipping with courier services like Meest-America lets you pay the duties and taxes in advance without worrying about the cost afterward. In other cases, the recipient in India will be responsible for paying everything. If no one pays, the parcel will be returned to the US.
How They Are Calculated in India
India’s authorities have the right to charge Basic Customs Duty (BCD), Goods and Services Tax (GST), and other fees. When your package is passing the border, they will:
* Assess the declared value on the shipping label to estimate the duty payment.
* Utilize the Harmonized System Code to determine the type of goods in the package and the applicable tax.
* Consider the general value of shipping and insurance to calculate the total duties cost.
For example, sending branded clothing and electronics will require higher duty payments than personal documents. Even if they are sent as a gift, personal items like that will be taxed heavily. Only gifts under INR 5,000 (or $60) might be exempt from customs duty, but that might not happen. Avoid sending items in bulk, as overly commercial-looking parcels will raise additional questions at the border.
Avoiding and Minimizing Indian Duties and Taxes
When sending parcels to India with Meest-America, it is important to be honest and straightforward in customs forms. While the courier service takes care of documentation,
you should declare the items and their value properly to avoid fees. If something goes wrong, Meest-America offers reliable customer support to help. Parcels worth up to $10 per kilogram can be paid for in advance.
In case you do not use a prepaid option, let the recipient know that they might have to pay duties and taxes when they receive the package. Most importantly, check the prohibited items list and make sure you do not send anything restricted.
Send Your Parcels to India Smoothly
Sudden customs fees and taxes can be frustrating when sending a parcel from the US to India. Yet, working with an experienced courier service like Meest-America and learning more about the customs clearance can make the process quick and easy. With a little planning, extra cost can be completely avoided.