Rules Regarding Transfer of Residence
What is Transfer of Residence ?
Transfer of Residence (TR) is a facility provided to a person (either an Indian or a foreign passport holder, whether a minor or not and even a student) who intends to transfer his/her residence to India after a stay abroad of at least two years. This facility allows the person and his/her family to import personal and household articles free of duty and certain other listed items on payment of a concessional rate of duty.
What are the conditions of eligibility for availing Transfer of Residence ?
(i) Minimum stay of two years abroad, immediately preceding the date of the passenger's arrival on transfer of residence. Shortfall of up to 2 months in stay abroad can be condoned by Assistant Commissioner of Customs if the early return is on account of - (i) terminal leave or vacation being availed of by the passenger, or (ii) any other special circumstances.
(ii) Total stay in India on short visits during the 2 preceding years should not exceed 6 months. Commissioner of Customs may condone short visits in excess of 6 months in deserving cases.(iii) Passenger or any member of his family have not availed this concession in the preceding three years.
(iv) The person claiming this benefit affirms by declaration that no other member of the family had availed, or would avail this benefit within the above time-period. The term "family" includes all persons in the same house and forming part of the same establishment.
Note : Earlier there was a clause of minimum stay in India of 1 year after taking TR. This has since been abolished.
What are the articles allowed duty free under Transfer of Residence ?
Used personal articles and household effects including items listed at Annexure-III of the Baggage Rules, except those listed in the next heading (Annexure-I & II of the Baggage Rules) are allowed duty free. Apart from that, the usual allowances applicable to Indian residents or foreigners residing in India under Rules 3 & 4 of the Baggage Rules applicable to each passenger returning from abroad are also available to passengers availing TR, in addition to the items allowed under TR. Certain amount of jewellery, as detailed below are also allowed free of duty.
Used personal articles - Though the baggage rules do not specify the nature of the personal effects, conventionally, it would include used items required for day-to-day personal use like all used items of personal wear including shirts, suits, shoes, shoe brush & polish, sarees, cosmetics in use, towels, toiletries, bedding, blankets, shaving kit, umbrella, pants, neckties, handkerchiefs, spectacles, hair dryers, blouses, undergarments, dentures, hearing aids, gloves, etc. etc. One watch is also included. This is not an exhaustive list and the assessing officer will decide on a case-by-case basis whether a particular item can be considered as personal effect.
Household effects - For the purpose of TR, Household effects comprise items already in use in the household of the passenger like furniture, kitchen utensils, books, cassettes and CDs, wall clocks, fans, lights etc. This is not an exhaustive list and the assessing officer will decide on a case-by-case basis whether a particular item can be considered as household effect. However, articles listed in the next heading (Annexure-I & II of the Baggage Rules) are dutiable and do not comprise articles allowed duty free as household effects. Articles which do not come under household effects or under Annexure-III of the Baggage Rules 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.
Jewellery - Jewellery, which had been taken out of India by the passenger concerned after procuring an Export Certificate from Customs during his/her departure, can be brought in duty free. This is also applicable for any other article taken from India. Apart from this, Jewellery valued upto Rs. 10000/- by a gentleman passenger and upto Rs. 20000/- by a lady passenger can be brought free of duty if he/she has resided abroad for over one year. This facility is also available to passengers eligible for TR.
Annexure-III items (Table-I of the TR Notification, 137/90-Cus, as amended)- The following 6 items which are listed under Annexure-III of the Baggage Rules are allowed free of duty under Transfer of Residence subject to certain conditions given below.
Annexure-III items
1. Video Cassette Recorder/Video Cassette Player/Video Television Receiver/Video Cassette Disk Player.
2. Washing Machine.
3. Electrical or Liquefied Petroleum Gas Cooking Range.
4. Personal Computer (Desktop Computer).
5. Notebook Computer (Laptop Computer).
6. Domestic Refrigerators of capacity up to 300 litres or its equivalent.Conditions for Annexure-III items :
(i) Passenger to affirm by a declaration that the goods (at Sl.No. 1 to 6) 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.
ii) Only one unit of each item (at Sl.No. 1 to 6) per family is allowed and total value of these items along with the items listed at Annexure-II of the Baggage Rules (at Sl. No. 1 to 17 below) should not exceed Rs.5 Lakhs.
iii) Unaccompanied goods must be shipped or despatched and arrive in India within the prescribed time limits (within two months before arrival and within after one month of arrival - see rules regarding unaccompanied baggage for details).
(iv) Only one unit of each item will be allowed under TR. If more than one unit is brought, the excess unit(s) will be classified as general baggage in which case the usual rate of baggage duty of 35.7% (after deduction of the free allowance from the total value of all such items) will be applicable. Similarly, if the total value of the above Annexure-III items and items listed at Annexure-II (at Sl. No. 1 to 17 below) exceed Rs.5 Lakhs, then the item(s) due to which the value is exceeding the ceiling amount must be brought as a general baggage item.
What are the articles not allowed duty free under Transfer of Residence ?
The articles listed at Annexure I & II of the Baggage Rules are not allowed free of duty under TR. Some of these items, as listed below (Annexure-II of the Baggage Rules) may be imported at a concessional rate of duty of 15.3%. The total value of these items along with Annexure III items should not exceed Rs. 5 Lakhs. Certain other articles, mostly listed under Annexure-I of the Baggage Rules can be brought by persons availing TR on payment of prescribed amounts of duty and after satisfying various conditions.
Articles not allowed duty free under TR, but at a concessional rate of duty of 15.3% (Annexure-II items of Baggage Rules / Table-II of the TR Notification, 137/90-Cus, as amended) :-
Annexure-II items
1. Colour Television / Monochrome Television.
2. Digital Video Disc Player
3. Video Home Theatre System.
4. Dish Washer.
5. Music System.
6. Air-Conditioner.
7. Domestic refrigerators of capacity above 300 litres or its equivalent.
8. Deep Freezer.
9. Microwave Oven.
10. Video camera or the combination of any such video camera with one or more of the following goods, namely:-
(a) Television Receiver;
(b) Sound recording or reproducing apparatus;
(c) Video reproducing apparatus.
11. Word Processing Machine.
11. Fax Machine.
13. Portable Photocopying Machine.
14. Vessel.
15. Aircraft.
16. Cinematographic films of 35 mm and above.
17. Gold or Silver , in any form , other than ornaments.
Conditions :(i) Passenger to affirm by a declaration that the goods (at Sl.No. 1 to 17) 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.
ii) Only one unit of each item (at Sl.No. 1 to 17) per family is allowed and total value of these items alongwith items listed at Annexure-III of the Baggage Rules should not exceed Rs.5 Lakhs.
iii) Unaccompanied goods must be shipped or despatched and arrive in India within the prescribed time limits (within two months before arrival and within after one month of arrival - see rules regarding unaccompanied baggage for details).
(iv) Only one unit of each item will be allowed under TR. If more than one unit is brought, the excess unit(s) will be classified as general baggage in which case the usual rate of baggage duty of 35.7% (after deduction of the free allowance from the total value of all such items) will be applicable. Similarly, if the total value of the above Annexure-II items (at Sl. No. 1 to 17) and Annexure-III items described before exceed Rs.5 Lakhs, then the item(s) due to which the value is exceeding the ceiling amount must be brought as a general baggage item.
Articles not allowed duty free, but at various rates of duty and/or under specific conditions :-
Firearms (may only be brought under TR) - Import of firearms is usually prohibited and import of Cartridges in excess of 50 is also prohibited, both being listed under Annexure-I of the Baggage Rules. However, persons bringing their effects on TR can bring one firearm of permissible bore on payment of a duty @153% ad-valorem, subject to the conditions that:-
(a) the same was in possession and use abroad by the passenger for a minimum period of one year and also subject to the condition that such firearm, after clearance, shall not be sold, loaned, transferred or otherwise parted with, for consideration or otherwise, during the lifetime of such person AND (b) the firearms can be allowed in such cases on payment of applicable duty provided the passenger has a valid arms licence from the local authorities.
Cigarettes, Cigars, Tobacco, Alcoholic Liquors -
Following quantities of Tobacco products and Alcohols may be brought by each passenger within the usual duty free allowances, as the case may be :
(1) 200 cigarettes or 50 cigars or 250 gms tobacco.
(2) Alcoholic liquor or wines in upto two litres.In case excess amounts are brought or the amount brought cannot be accommodated within the free allowance limit, higher rates of duty are imposed. Click here for the prescribed rates of duty.
Cars, Motorcycles, Scooters, Moped etc. (may only be brought under TR) - Persons availing TR can also bring cars and motorcycles on payment of the prescribed rates of duty. For the rates of duty and associated conditions, click here.
Gold and Silver -
(i) Under Transfer of Residence, one can bring Gold & Silver in any form other than ornaments (Sl. 17 of Annexure-II) as part of the baggage on paying 15.3% duty, subject to the upper total value limit of Rs.5 Lakhs for all listed items.
(ii) Jewellery valued upto Rs. 10000/- by a gentleman passenger and upto Rs. 20000/- by a lady passenger can be brought free of duty if he/she has resided abroad for over one year. This facility is also available to passengers eligible for TR.
(iii) Apart from that, Gold and Silver in the primary form (bars, biscuits etc.) and gold/silver jewellery without encrusted stones brought in excess of the prescribed free amount as mentioned above are liable to duty as per the provisions of the NRI gold/silver import scheme. For the rates of duty and associated conditions, click here.