Thursday, June 11, 2009

A lesson learnt from Sheetal landing

Don’t do a Sheetal Mafatlal, is the buzzword among frequent fliers in town.
The next time you’re off on a holiday or attending a wedding on foreign shores, they are telling one another, declaring the valuables you are carrying or bringing back to the customs department can spare you the ordeal suffered by Mumbai socialite Sheetal on June 6.
“We always advise our clients to declare the valuables that they are carrying so that the customs officer makes a note of it, and they are not charged any duty on the way back. For items bought abroad, it is prudent to pay duty because non-declaration can lead to arrest,” says Anil Punjabi, the chairman (Eastern India Chapter) of Travel Agents Federation of India.
According to the current custom rules, if you have shopped abroad, jewellery, electronics and other items up to Rs 25,000 are duty-free. For anything beyond, duty must be paid, failing which fine and penalty can be imposed.
Better be safe than sorry, feels fashion designer Kiran Uttam Ghosh. “Two years ago, I didn’t pick up a python bag from Italy because I wasn’t sure if it would have to go through customs,” she says.
Under Section 135 of the Customs Act for evasion of duty — that led to the Mafatlal bahu’s arrest at Mumbai airport — the offence can be “compounded by paying up to 20 per cent of market value of the goods or Rs 10 lakh whichever is higher”. This comes into play when the amount is more than Rs 5 lakh and proceedings have been initiated by the customs department. Otherwise, an out-of-court settlement can be reached.
11/06/09 Karo Christine Kumar/The Telegraph
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