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 demanded and obtain clearance for the goods. Baggage is classified in Customs Tariff under Chapter 98.03. 1st March, 1997.
Total duty is payable after deducting the value of free allowances.
Therefore, if value of article is Rs. 1000, basic duty will be Rs. 500 and special duty will be Rs. 50. Baggage does not include motor vehicles, liquor, cigarettes in excess of prescribed limits and firearms. An Indian passport holder returning to India after working and staying abroad for at least 365 days in last two years is eligible for this concession. 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.