Introduction
Before making a confirmed order, it is important for the
importer to ask for a sample of the original manufactured product that can be
shown or demonstrated for Customer appreciation and familiarisation. Import of
samples help the importer to deciding the total quantity of product need to be
imported as well as also allows importer to make any necessary changes in the
final product.
Import samples
The import samples are basically specimens of the product, which is finally
given to the importer. It may include consumer goods, consumer durables,
prototypes of engineering goods or even high value equipment, machineries
(including agricultural machinery) and their accessories. Import of samples can
be done by the trade, industry, individuals, Companies, Associations, Research
Institutes or Laboratories. These can also be brought by the Representatives of
foreign Manufacturer as a part of their personal Baggage or through port or in
Courier. They can also be sent by Manufacturers/Traders abroad to above parties
in India.
Geneva Convention, 1952
Import of samples of goods is exempt from import duties under Geneva Convention
of 7th November, 1952. India is also a signatory to a 1952 convention to
facilitate the Importation of Commercial samples and Advertising materials. The
notifications issued in this regard enable duty free import of genuine
Commercial samples into the country for smooth flow of trade.
Restriction on Import of Samples
However, goods which are prohibited under Foreign Trade (Development and
Regulation) Act, 1992 are not allowed to be imported as samples e.g. wild
animals, wild birds and parts of wild animals and birds, ivory, arms &
ammunitions, and Narcotic drugs.
Value limit
The bonafide trade samples can be imported by trade and industry provided the
said goods have been supplied free of charge. For duty free clearance the value
of individual sample should not exceed Rs.5000/- and aggregate value should not
exceed Rs.60, 000/- per year or 15 units of samples in a year. This strategy
avoids the risk of not paying Customs Duty through repeated imports of samples
in smaller lots.
Machinery
import
Import of machinery products, which are prototypes of engineering goods can also
be imported duty free if the value does not exceed Rs.10000/-. In case the value
of machinery exceeds more than Rs.10000/- then such goods are always chargeable
to duty.
Privacy of Import Samples
In case of high valued machinery the importer can import a sample under privacy.
On the request of importer, the Customs authority may also seal the machinery
during its journey from the port of importation to the place of demonstration
and it is unsealed only at the place of operation or place of demonstration.
Failure to
re-export
In case of any damage to the previously send import sample of product, the same
sample can be send again within the time period of 9 months. However, the
Assistant Commissioner of Customs, may under special circumstances extend the
period of 9 months for a further reasonable period.
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