The owner of any baggage has to make a declaration of its contents to the Customs Officer. Customs duty is payable on baggage at the rate and valuation in force on the date of declaration. If a person has no dutiable goods in his baggage, he can go through the green channel. A person carrying dutiable goods must go through the red channel and must declare the dutiable goods carried by him. Once these goods are assessed, he must pay the duty applicable and obtain clearance for the goods.
Total duty is payable after deducting the value of free allowances.
Therefore, if value of any article is Rs. 1000, basic duty will be Rs. Baggage does not include motor vehicles, liquor, cigarettes in excess of prescribed limits and firearms. This concession is available only if the articles were in his possession or were purchased at an International airport in a duty free shop at the time of his arrival but before customs clearance. This concession is also available to un-accompanied baggage despatched later within prescribed period. A person transferring his residence to India for at least one year after stay abroad for two years is eligible for concession upto value of Rs.