Procedures for Importing Goods by Post in India

Importing goods by post offers a convenient alternative to traditional shipping methods, particularly for small consignments, personal items, and commercial samples. In India, the postal import process follows a well-defined framework where the Postal Department and Customs authorities work together to ensure regulatory compliance. Understanding these procedures helps importers avoid delays, fulfill documentation requirements, and clear their parcels smoothly.

Legal framework governing postal imports 🔗

The import of goods by post in India is regulated under Sections 82, 83, and 84 of the Customs Act, 1962. Section 83 deals with the rate of duty and tariff valuation for postal imports, while Section 84 empowers the government to make regulations regarding goods imported or exported by post. Additionally, the Rules Regarding Postal Parcels and Letter Packets from Foreign Ports In/Out of India, 1953, prescribe the detailed procedure for landing and clearing parcels at notified ports and airports.

Goods imported through the postal channel are typically classified under Chapter Heading 9804 of the Customs Tariff Act, 1975. This classification applies to items permitted for personal use that are not prohibited under the Foreign Trade (Development and Regulation) Act, 1992. However, motor vehicles, alcoholic beverages, and goods imported through courier services do not fall under this heading and are assessed at regular duty rates.

Role of Foreign Post Offices 🔗

The Postal Department facilitates postal imports through its network of Foreign Post Offices (FPOs) and sub-Foreign Post Offices across India. Customs facilities for examination, assessment, and clearance are available at these locations. Major FPOs operate in cities like Mumbai, Chennai, Kolkata, Bengaluru, and Delhi, each serving specific postal jurisdictions covering multiple states.

When goods arrive from abroad by post, the postal authorities transfer them to the customs office attached to the respective Foreign Post Office. The Postal Appraising Department, staffed by customs officers, handles the examination and assessment of these consignments.

Categories of postal articles 🔗

Foreign Post Offices classify incoming consignments into distinct categories based on weight and type:

Import packets and letters include consignments weighing less than 2 kilograms. Import parcels cover consignments weighing between 2 and 20 kilograms. Speed post, registered packets, and unregistered items are handled separately based on their tracking numbers and documentation.

The customs clearance process 🔗

The clearance of postal imports follows a systematic multi-stage process involving both postal and customs authorities.

Receipt and sorting 🔗

Upon arrival, postal bags containing parcels labeled as “Postal Parcel,” “Parcel Post,” “Parcel Mail,” or “Letter Mail” are received at the Foreign Parcel Department. Postal authorities open these bags and sort the parcels according to their jurisdictional coverage. Only parcels pertaining to the specific FPO’s postal jurisdiction are retained for customs clearance.

Documentation handover 🔗

The postmaster provides customs officers with essential documents including a memo showing the total number of parcels received from each country of origin, parcel bills in sheet form, senders’ customs declarations, dispatch notes, and any other relevant information required for examination and assessment.

Screening and examination 🔗

Letter mail articles are generally cleared at the time of arrival and sorting unless they appear to contain contraband or dutiable items. In such cases, they are subjected to further examination. Import parcels and packets are presented to the Postal Appraising Department for screening, which represents the first stage of clearance.

Parcels not cleared during screening are held back and presented to customs for table examination, also known as sheet assessment. During this second stage, customs officers examine detained parcels at the examination table, verifying the contents, nature, importability, and declared value of the goods.

Notice to importers 🔗

When customs requires additional information to ascertain the value, quantity, or description of parcel contents, the addressee receives a notice requesting them to produce or furnish invoices, documents, and other information. This call letter cum show cause memo directs consignees to provide necessary documents such as commercial invoices, payment details, Import Export Code (IEC), or to fulfill any conditions or obtain required No Objection Certificates from agencies like the Drug Controller, Wildlife Regional Officer, or Plant and Animal Quarantine.

Documents required for postal imports 🔗

The documentation requirements vary depending on whether the import is personal or commercial in nature.

For personal imports 🔗

Personal imports include goods brought in for personal use, not connected with trade, manufacturing, or agriculture. For such imports, the customs declaration (CN 22/23 forms) attached to the parcel typically suffices. Postal Bill of Entry is not required for personal imports.

For commercial imports 🔗

Commercial imports require more comprehensive documentation. Importers must furnish an import declaration through a Postal Bill of Entry filed manually. Supporting documents include commercial invoices, packing lists, certificate of origin, IEC certificate, GSTN number, payment terms, and remittance proof of foreign exchange. The Bill of Entry captures the import declaration with details of quantity, value, and other particulars.

Duty assessment and payment 🔗

The rate of duty applicable to postal imports is determined based on the date when postal authorities present the list containing details of goods to the customs officer. If this list is presented before the arrival of the vessel carrying the goods, the list is deemed to have been presented on the date of the vessel’s arrival.

Duty rates for personal imports 🔗

Personal imports are classified under heading 9804 and attract a composite duty rate of 42.08 percent, comprising 10 percent Basic Customs Duty, 10 percent Social Welfare Surcharge, and 28 percent Integrated Goods and Services Tax (IGST), unless they qualify for exemption.

Duty collection mechanism 🔗

The customs department assesses the duty payable and notes it on the parcel bill. The postal department then collects the assessed duty from the receiver at the time of delivery. The postal department subsequently deposits the collected amount with customs.

Exemptions from customs duty 🔗

Several categories of postal imports enjoy duty exemptions, making this channel attractive for certain types of consignments.

Gifts 🔗

Bona fide gifts up to a CIF value of Rs. 5,000 are exempt from basic and additional customs duties. The sender need not be residing in the country of dispatch, and gifts can be sent to relatives, business associates, friends, or even companies. However, if the value exceeds Rs. 5,000, the receiver must pay duty on the entire consignment, even if received free of cost.

Low-value personal imports 🔗

Personal imports other than gifts with a CIF value up to Rs. 1,000 are exempt from import duty. Additionally, if the customs duty payable on any consignment is less than Rs. 100, no duty is collected.

Commercial samples 🔗

Bona fide commercial samples and prototypes imported by post are exempt from customs duty up to a value limit of Rs. 10,000, provided they are supplied free of cost. Importers holding an IEC can import commercial samples worth up to Rs. 100,000 or 15 units within 12 months without duty payment.

Life-saving drugs 🔗

Medicines and life-saving drugs for personal use, supplied free of cost by overseas suppliers, may be imported through post without customs duty.

Handling misdeclaration and prohibited goods 🔗

When examination reveals that parcel contents are misdeclared, undervalued, or consist of prohibited goods, the parcel is detained. The postmaster cannot allow such parcels to proceed without customs orders. Adjudication proceedings are initiated by the competent officer, and parcels are released only after payment of any fine or penalty levied.

Prohibited goods include narcotic drugs, arms and ammunition, obscene materials, and items banned under the Foreign Trade Policy. The receiver may face penal action even if such goods were sent unsolicited.

Reassessment and dispute resolution 🔗

If a consignee believes the duty has been incorrectly assessed, they should not accept delivery from the post office. Instead, they should send back the consignment through the Postmaster with a request for reassessment. Customs performs reassessment based on available documents, and physical examination may be conducted if necessary.

Unclaimed parcels 🔗

When addressees fail or refuse to take delivery after customs clearance, such parcels are returned to the foreign post office. Unclaimed parcels that have been assessed for duty are handed over to the customs warehouse after serving notice to the party, and these are disposed of at the earliest opportunity.

Tracking and queries 🔗

The postal authorities remain custodians of import parcels and are responsible for their safety, security, and proper handling. Consignment status can be tracked through the India Post website. For queries regarding customs clearance, importers should contact the Postal Appraising Department at the relevant Foreign Post Office.

What do you think? Have you imported goods through the postal channel before? What challenges did you face during the customs clearance process, and how do you think the system could be made more efficient for small importers?

References

1. https://www.indiacode.nic.in/handle/123456789/2475?view_type=browse
2. https://www.eximguru.com/exim/indian-customs/customs-manual/clearance-by-post.aspx
3. https://www.indiafilings.com/learn/import-of-goods-through-post/
4. https://bangalorecustoms.gov.in/postal-appraising-department/
5. https://www.mumbaicustomszone1.gov.in/Info/PostalAppraising
6. https://chennaicustoms.gov.in/foreign-post-officepad-procedure/
7. https://www.kolkatacustoms.gov.in/bagg-aeo-postal/postal-appraising
8. https://chennaicustoms.gov.in/foreign-post-officepad-faq/
9. https://www.trade.gov/country-commercial-guides/india-import-requirements-and-documentation
10. https://www.hdfcbank.com/personal/resources/learning-centre/sme/step-by-step-guide-on-starting-an-import-trade
11. https://mumbaicustomszone3.gov.in/apsc-export-through-dnk-portal