iphone - AM22Tech Visa, Immigration and Money Tue, 10 Sep 2024 21:07:45 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.2 https://www.am22tech.com/wp-content/uploads/2017/12/am22tech-logo.png iphone - AM22Tech 32 32 Send iPhone USA to India, Custom Duty, GST Tax Calculator https://www.am22tech.com/sending-iphone-to-india-from-usa/ Sat, 20 Sep 2014 06:18:39 +0000 http://104.196.159.131/?p=680 Sending iPhone to India is expensive (customs duty + GST Tax) than buying in India. Mark as Gift does not help. Carrying and not declaring at Indian airport custom evades duty but not safe.

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The cost of shipping the iPhone from the USA to India is $150+. The GST tax is 18%.

Buying the iPhone from the USA and shipping it to India is not cheap after adding customs duties and GST tax.

Indian government charges customs duty on importing phones from China, the US, Canada, the UK, or Australia.

You have to pay for shipping, insurance, and customs duty in India along with GST tax for sending any phone including iPhone, Google Pixel, Samsung Note, and Samsung S series to India.

You may be paying much more for a smartphone if you decide to buy from the USA and ship it to yourself in India, the legal way.

Custom Duty, Taxes in India

Indian Customs duties and GST tax are due when you import mobile phones under the cell phone category.

Indian customs will find the CIF value for the iPhone or mobile that you are importing to India.

The CIF value is a total of:

  1. the price paid for the goods (including sales tax) +
  2. the cost of transportation +
  3. loading, unloading, handling fee +
  4. Insurance fee +
  5. any other fee you pay for the delivery of goods from the place of export to a place of import

All other charges are calculated on this CIF value

Example:

Buying in USAPrice
iPhone Base Price$1200
Sales Tax (8% average across US)$96
FedEx Shipping fee (door to door)$150
Insurance fee
(if you pay extra for insuring your phone – Usually 2% of product value)
$24
TOTAL (CIF VALUE)$1470
GST (18%) in India$265
FINAL COST (CIF + GST)$1735
Total Cost of sending iPhone to India from USA

In our example, this CIF value is the total money that you have spent on the item in the USA including all sales tax.

If you convert the dollar amount to Indian rupees with a conversion rate of 1 USD = INR 83, it probably makes no financial sense to ship it.

It would probably cost around 144k Indian rupees (equal to $1735) to send it to India.

Instead, we would suggest buying directly from India.

iPhone Global Warranty

Apple does offer a global worldwide warranty on its products bought in the USA.

This means that Apple’s official store in India should be able to help you fix or replace the iPhone in case it stops working within 1 year from the date of purchase (receipt date).

Apple’s warranty says they will:

  1. Repair the hardware defect at no charge, using new or refurbished replacement parts, or
  2. Exchange the product with a product that is new or which has been manufactured from new or serviceable used parts and is at least functionally equivalent to the original product, or
  3. Refund the purchase price of the product. Apple may request that you replace defective parts with new or refurbished user-installable parts that Apple provides in fulfillment of its warranty obligation.

Send Locked iPhone

You will also need to make sure that you send the unlocked iPhone to India or you will need to find someone who can unlock the iPhone for you.

Unlocking can be done but it sometimes results in making the phone unusable. So, be very careful.

Many people buy the iPhone from service providers like ATT, Verizon, and T-Mobile with insurance and then send it to India.

They then, claim the insurance for the lost iPhone and try to get a new one.

  1. First, this setup is illegal as per US law as it is considered fraud with insurance companies.
  2. Second, the insurance companies have become smart and they have now added a co-pay and the deductible to make sure you do not get any such ideas.

Someone recently shared this picture of an Apple launch event with me which sums up the need to upgrade to a newer iPhone every year!

Every iPhone launch event speech
Every iPhone launch event speech

FAQ

Who can send Mobile as a gift to India from the USA?

Any person can send a mobile as a gift to India. It can be your business associates, friends, relatives, or companies abroad can send a mobile as a gift to India. 

No relationship proof is required.

Who pays the Customs Duty on imported iPhones in India?

The Indian receiver is required to pay the customs duty and taxes on imported mobiles.

How do we pay customs duty on iPhones imported from the USA?

You can pay iPhone custom duty yourself at the airport or your shipping company can pay and then you can pay them.

When the shipment reaches India, your postal company like FedEx will run it through customs. The customs officer would create a custom invoice and the postal company would either call you to keep the money ready or ask you to deposit the money first.

Once you deposit the money, you will be handed over your package. Most of the companies these days like BlueDart, FedEx, etc. have streamlined the process. 

They would call you before coming to deliver the package and ask to keep the money ready. You pay the customs duty to the delivery boy itself.

How much time does it take to get an iPhone from the USA in India?

The mail company can take 3 to 10 days to deliver your mobile from the USA to India. There can be delays caused by customs checking in India.

Is there any GST Tax on imported mobile in India?

GST tax is applied to imported mobile phones in India including the iPhone.

GST is a short form of Goods and Services tax.

Is there any Sales Tax on Imported Mobile in India?

Sales tax is not charged on imported mobile phones in India.

Can I mark Mobile as a Gift to Avoid Customs duty in India?

You cannot avoid Indian customs duty by marking the mobile package as a gift when shipping to India.

What is the custom-free limit of the Gift package to India?

Only gifts up to INR 10,000 worth of a single package are allowed as custom-free in India.

The value of 10K is converted value after applying the USD to the INR exchange rate. Postal charges or air freight or insurance is not taken into account to find the value of the product.

NOTE: If the value of the gifts received is more than INR 10,000, the receiver has to pay Customs duty on the whole consignment, even if the goods were received free.

I won the iPhone Online, Do I have to Pay customs Duty When receiving it in India?

You have to pay customs duty on a mobile phone while receiving it in India even when you win it in any online competition or lottery or anything.

Can I carry an iPhone in My pocket to Avoid Indian Customs Duty?

You can carry the new iPhone in your pocket but custom duty is required to be paid if the total value is greater than 10,000 Indian rupees.

You can carry a mobile but if you do not declare it on the customs form, you may have to pay a penalty if you are caught.

If you are not caught by customs and you did not declare it on customs forms, you have escaped the duty effectively.

How much GST is charged on Imported Mobiles in India?

You have to pay an 18% GST tax on imported mobiles in India.

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How to Send Used Mobile to India by USPS Fedex from USA https://www.am22tech.com/sending-used-phone-india-usa-usps/ https://www.am22tech.com/sending-used-phone-india-usa-usps/#comments Thu, 26 May 2016 00:12:46 +0000 http://104.196.159.131/?p=1011 Mobile to India by USPS or FedEx - custom duty, GST Tax paid by buyer. PAN Card, Photograph & ID proof needed for customs clearance. Sample forms. Delivery at doorstep.

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This is my own experience of sending a used smartphone by postal mail from the USA to India with USPS (United States Postal Service) as the shipping company.

You can easily send any used or new mobile phones like iPhone, Google Pixel, or Samsung note or Samsung mobile from the USA to India.


Calculate India Customs Duty Now

Mobile to India Custom Duty and GST Tax?

GST Tax is charged on imported goods including mobile and is part of customs duty.

The most updated GST rate is mentioned in this article for mobiles.

Sending Mobile to India by USPS with Fedex delivery

Which mailing service is reliable, cheap, fast, and offers custom clearance in India?

  • FedEx is most expensive with the cost for 1 LB package around $116.
  • UPS has price tagged at $109.
  • USPS starts its pricing from $61.45 for priority mail international.

The biggest drawback with USPS though is that they use India Post as their delivery partner in India for all their priority mail international services.  It takes about 7-10 days with NO custom clearance help.

USPS Global Delivery Express Service

Most of the people would use the USPS priority mail service but I would not recommend it. Instead, use USPS’s other product named ‘Global Delivery Express’. This service uses FedEx delivery in India. FedEx India takes the pain of custom clearances on your behalf.

USPS Global Delivery Express costs $108.80 with insurance, tracking, and 3-5 day guaranteed delivery in India (They use FedEx to deliver in India instead of India Post).

I know that it is almost the same price as UPS and a bit less than FedEx. But, you don’t have many options if you want reliability, custom clearance help, and faster service.

Even if you have time to spare and don’t care about speed, I would still strongly recommend using this USPS service.

Here is the custom form and sample receipt for sending via USPS service:

Custom form receipt send mobile to India Via USPS
Custom form receipt send mobile to India Via USPS

Then, the final mobile box would be placed in USPS-Fedex packet like this:

USPS Fedex final package
USPS Fedex final package

Documents to Send for Indian Custom Clearance

You need to pay customs duties and taxes when a smartphone bought in the US reaches India.

Don’t worry, you will get a call from FedEx India where a delivery boy will contact you immediately with the documents that you need to furnish. In our case, the FedEx delivery person hand-delivered the list of documents to be submitted with instructions on the 3rd day itself and that too after 5 PM.

You can pre-prepare yourself and collect these documents, to expedite the customs clearance. Note all the documents here should be of the person receiving the package in India.

This is the letter you can expect you receive when your package reaches India and USPS hand-overs it to them:

Fedex document demand letter for custom clearance In India
Fedex document demand letter for custom clearance In India
  1. 2 Passport Size photograph. If you are sending documents by email, just send one digital copy.
  2. PAN card copy.
  3. Anyone of the following:
    • Voter ID card
    • Passport’s first and last page
    • Driving License
    • Bank Statement
    • Ration Card
    • Aadhar Card

Documents From Indian Receiver

Download the KYC Form (Know Your Customer Form) and Authorization Letter from this FedEx India link under section ‘Useful Shipping Forms at Your Fingertips‘.

KYC form has the ‘Checklist’ included in one single download.

#1 Fedex KYC form (sample)

Fedex sample KYC form for custom clearance in India
Fedex sample KYC form for custom clearance in India

#2 Fedex Checklist (Sample)

Fedex checklist for custom clearance in India Sample
Fedex checklist for custom clearance in India Sample

#3 Fedex Authorization Letter

For getting your package cleared by Fedex on your behalf

Fedex Authorzation letter for custom clearance in India
Fedex Authorzation letter for custom clearance in India

You can easily send the KYC form, checklist, and other scanned copies of documentary proof by email kycdocs@mail.fedex.com with the subject as your FEDEX AWD number.

Fedex AWD Number

You will find the FedEx AWD number on the top of the document demand letter. See the sample above.

Remember, this is NOT the same as the USPS tracking code that you would have got in the USA.

Custom Duty, GST Tax in India

Here is the break up for this case:

Custom duty is 18.16% of total CIF value for sending mobile to India
Custom duty for sending mobile to India

This custom duty percentage keeps changing from time to time as the government revises the tax rate. When I had shipped it, there was no GST tax applicable.

But, now, the GST tax rate is charged. The current custom duty and the tax rate is documented here for your easy reference.

CIF cost means the total of Cost, Insurance and Freight.

The CIF value is the price paid for the goods plus the cost of transportation, loading, unloading, handling, Insurance, and associated costs incidental to the delivery of goods from the place of export to a place of import.

This is precisely the value that customs values your imported item. The other charges are calculated on this CIF value.

You would need to pay these fees (INR 2399) at the time of delivery to the FedEx person by CASH. They will provide the receipt too (as shown above) with your package.

Cost of Sending Used Phone to India

 Custom Duty IndiaGoogle LG Nexus 5 (16 GB) White
Declared Price (in USD, has to be greater than zero)$50
Package Weight11 Oz (Less than 1 LB)
Mailing Cost (USPS Global Delivery Express)$108.80
Transit Insurance (FREE up-to $100 declared value)$0
Total (in USD)$158.80
Total (in INR)(1 USD = INR 66.88)INR 10,939

Add to this, the cost of customs duty as charged as you can see the final hit to your pocket.

Can I mark the parcel as GIFT to evade custom duty/tax?

You cannot save Indian custom duty by marking the parcel as a gift.

You can ONLY gift up-to INR 10,000 worth of a single package and that too without a bill.

The value of 10K is converted value after applying the relevant exchange rate. Also, postal charges or air freight or insurance are not taken into account to find the value of the product.

If the value of the gifts received is more than INR 10,000, the receiver has to pay Customs duty on the whole consignment, even if the goods were received free.

Who can be a sender of GIFT to send mobile to India?

Any person abroad can send gifts to India.

There is no specific restriction that only relatives can send the goods. Business associates, friends, relatives, companies, or acquaintances can also send gifts to residents in India.

No proof is required.

How much Time to Ship Mobile to India from USA?

This service by USPS (with FedEx) takes about a total of 3-5 working days if there is no customs clearance delay.

If you are submitting the KYC and supporting identity proof documents for the first time to FedEx, there will certainly be a delay of at least 2-3 days.

Is Sales Tax charged on Imported Goods/mobile in India?

There is no sales tax charged by India on importing goods at this time.

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