Persons Transferring Residence

A person who is transferring his residence to India shall be allowed clearance free of duty, in addition to allowances applicable to Indian residents, articles in bona fide baggage to the extent and subject to conditions as mentioned below:

Articles allowed free of duty Conditions Relaxation that may be considered
a. Used personal effects and household articles, other than those listed at Annex I or Annex II, but including the articles listed at Annex III and jewelry up to Rs. 10,000 by a gentleman passenger or Rs. 20,000 by a lady passenger.

b. Jewelry taken out earlier by the passenger or by a member of his family from India.

  1. Minimum stay of two years abroad, immediately preceding the date of his arrival on transfer or residence.
  2. Total stay in India on short visits during the preceding 2 years years should not exceed 6 months, and
  3. Passenger or any member of his family has not availed this concession in the preceding 3 years.

Satisfaction of the Assistant Commissioner of Customs regarding the jewelry having been taken out earlier from India.

  1. For condition (1)
    Shortfall of upto 2 months in stay abroad can be condoned by Deputy / Assistant Commissioner of Customers if the early return is on account of:
    1. terminal leave or vacation being availed of by the passenger; or
    2. any other special circumstances.
  2. For condition (2)
    Commissioner of Customs may condone short visits in excess of 6 months in deserving cases.
  3. For condition (3)
    No relaxation.

• The term "family" includes all persons in the same house and forming part of the same establishment.

• This facility is provided to any person (subject to all other conditions mentioned above), irrespective of being Indian or a foreign passport holder, whether a minor or not and even a student.

• Earlier, there was a rule that the person must stay in India for a minimum of 1 year after availing transfer of residence facility. That has been abolished.

• Items listed in Annex II are dutiable items at the duty rate of 15% ad valorem + 3% education cess.

• Certain articles, mostly listed under Annex I, can be brought by persons availing transfer of residence upon payment of prescribed amounts of duty and after satisfying various conditions.
Household Effects

Household effects consist of items already in use in the household of the passenger like furniture, kitchen utensils, books, cassettes and CDs, wall clocks, fans, lights etc. There is no exhaustive list. Assessing officer will determine on a case-by-case basis whether a particular item can be considered as household effect. However, items listed in Annex I and Annex II can not be considered as household effects. Articles that do not counter under as household effect or under Annex III but are not a part of listed dutiable items either, can be brought as general baggage, which are liable to duty if the total value exceeds the duty free allowance limit of a passenger.

Conditions for Annex II and Annex III items

• Passenger must provide a declaration the goods have been in his/her possession abroad or the goods are purchased from the duty-free shop by him/her at the time of his/her arrival but before clearance from Customs.

• Only one unit of each item per family is allowed. The total value of these items along with the items listed in Annex II should not exceed Rs. 5 lakhs. If more than one unit is brought or if the total value exceeds Rs. 5 lakhs, the items(s) exceeding the limits will be charged duty as general baggage items, at the duty rate of 35.7%.

• Unaccompanied goods must be shipped or dispatched and arrive in India within the prescribed time limits.

Sources: www.cbec.gov.in




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