The Government has exempted gifts items received from
foreign country to persons residing in India from the whole of custom duty
under Foreign Trade Act. In the present scenario, import of goods up to the
value of Rs. 5,000/- is allowed as gift, duty free. This exemption is allowed
only for bonafide gifts imported by air or post. For the purpose of calculation
of this value of Rs. 5,000/- the air freight or postal charges paid are not
added. It is important to note that the value of Rs. 5,000/- is the value of the
goods in the country from where the goods have been dispatched. The sender may
not necessarily be residing in the country from where the goods have been
Who can send the gifts?
Any person living abroad can send a gift to an individual living in India. There
is no specific restriction that only relatives can send the gift items. Business
associated, friends, relatives, companies or acquaintances can also send the
gifts to the people living in India.
Custom Clearance Permit of Imported Gifts
Import of gifts items, which is freely importable need no custom clearance
permit. However, there are certain gift items that are not freely importable. In
such a situation a special permit is required by the custom authorities. The
main objective of the custom clearance permit is to allow the import of gift
items which is other wise restricted or prohibited by Government of India for
the use of charitable, religious or educational institute registered under a law
or approved by the Central or State Government.
Application Procedure for Custom Clearance
An application for the grant of CCP for an item which is otherwise restricted or
prohibited in the ITC-HS Classification may be made to Director General of
Foreign Trade supported by the following documents.
Applicant's request on his compay’s letter head or plain
paper duly signed with all the details.
Donor's letter in original duly signed and indicating his
name, address and the purpose of offering gift.
Bank Receipt in original in duplicate/ Demand Draft / EFT
details towards payments of application fee at the prescribed rate.
Self certified copy of proforma invoice.
Any other relevant document which applicant would like to
Table of Contents