Transfer of Residence to India: Customs Rules for NRI (2023)

The NRI Guides Team regularly reviews this article to ensure the content is up-to-date and accurate. The last editorial review and update were on 25 October 2023.

If you are considering moving back to India or are already doing so, you should know a few things about customs rules and duty-free allowances.

As per the Baggage Rules of Indian Customs, you can bring a certain amount of personal belongings and household goods into the country without paying any duty.

You are entitled to additional allowances if you are an NRI returning to India permanently after a period of stay abroad. However, you should be careful as some of your personal belongings may be prohibited, restricted or dutiable upon bringing to India.

This article discussed everything about eligibility conditions, minimum stay abroad, and duty-free allowances during the transfer of residence to India.

The below information has been prepared after studying the Indian Baggage Rules and traveller guidelines issued by the Central Board of Indirect Customs and Taxes.

What is Transfer of Residence?

The Transfer of Residence (TR) is a facility available to eligible Indian citizens or foreign passport holders planning to transfer their residence to India after living abroad.

Transfer of Residence Benefits

Individuals who have settled abroad and plan on returning or staying in India for a prolonged period can benefit from the Transfer of Residence rules and relaxed customs regulations regarding their possessions.

Under the Transfer of Residence facility, individuals and their families are permitted to import certain household items free of duty and other listed items for a concessional duty rate.

Eligibility for Transfer of Residence

Persons who have been employed overseas for more than three months and who move to India to live are entitled to have some articles in their accompanied or unaccompanied baggage cleared under Baggage Rules, 2016.

Depending on the passenger’s minimum period of stay abroad and fulfilment of conditions, various articles are allowed free of duty up to a specified limit. Below is a summary table and more detailed explanations follow:

Sl.	Duration of Stay Abroad	Maximum Aggregate Value
a)	3 to 6 months	Rs. 60,000
b)	6 months to 1 year	Rs. 100,000
c)	Minimum 1 year during the preceding two years	Rs. 200,000
d)	Minimum stay of two years or more	Rs. 500,000

Note that these allowances are in addition to the regular duty-free allowances applicable to Indian Residents.

They are also subject to fulfilment of the following conditions and are only available on specific items:

a) From three months up to six months

Personal and household articles, other than those mentioned in Annexure I or Annexure II but including articles mentioned in Annexure III up to an aggregate value of Rs. 60,000.

Condition: Should be an Indian passenger.

b) From six months up to one year

Personal and household articles, other than those mentioned in Annexure I or Annexure II but including articles mentioned in Annexure III up to an aggregate value of Rs. 100,000.

Condition: Should be an Indian passenger.

c) Minimum stay of one year during the preceding two years

Personal and household articles, other than those mentioned in Annexure I or Annexure II but including articles mentioned in Annexure III up to an aggregate value of Rs. 200,000.

Conditions:

1. Should be an Indian passenger.
2. Should not have availed of this concession in the preceding 3 years.

d) Minimum stay of two years or more

Personal and household articles, other than those mentioned in Annexure I or Annexure II but including articles mentioned in Annexure III up to an aggregate value of Rs. 500,000.

Conditions:

1. Minimum two-year stay abroad immediately preceding his arrival on TR.
2. Total stay in India on short visits during the 2 preceding years should not exceed 6 months.
3. Should not have availed of this concession in the preceding 3 years.

Relaxations allowed in this case:

1. The Deputy Commission of Customs or Assistant Commissioner of Customs may allow a shortfall of up to 2 months in stay abroad in cases where the early return is due to terminal leave or vacation taken by the passenger or any other exceptional circumstances.
2. In deserving cases, the Principal Commission of Customs or Commissioner of Customs may approve short visits of more than six months. The reason for relaxation should be recorded in writing.

Duty-Free Items Under Transfer of Residence Facility

By using the Transfer of Residence facility, a passenger can bring to India used personal and household articles (exceptions listed below).

Household articles allowed include furniture, kitchenware, small kitchen appliances, glassware, carpets, and other normal household items, as long as the passenger has used them for at least one year.

However, items listed in Annexure I and Annexure II cannot be considered household items.

If you import a new article, you will have to pay customs duty, which is about 35%. Plus, there is a 10% education cess (which makes the total duty 38.5%). If they are used household articles, you can claim standard depreciation based on how old the article is.

Items That Cannot Be Imported Duty-Free

The following items under Annexure I and Annexure II of Indian Baggage Rules cannot be imported duty-free using the Transfer of Residence facility, even if they are used household items.

Annexure I

1. Firearms (see exception)
2. Cartridges of firearms exceeding 50
3. Cigarettes exceeding 100, cigars exceeding 25 or tobacco exceeding 125 gms
4. Alcoholic liquor or wines over two litres
5. Gold or silver, in any form other than ornaments
6. Flat Panel (LCD/LED/Plasma) Television

Regarding the import of television, you can check Indian Airport Customs Duty on LCD/LED Television.

Some of the items in Annexure II may be eligible for concessional duty (discounted duty). Note that the reduced duty will apply only to the first unit.

Annexure II

1. Colour Television
2. Video Home Theatre System
3. Dish Washer
4. Domestic refrigerators (above 300 litres capacity)
5. Deep Freezer
6. 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
7. Cinematographic films of 35 mm and above
8. Gold or Silver, in any form other than ornaments

Regarding the import of gold, please check the Indian Customs duty-free allowance on gold.

Items That Can Be Imported Duty-Free Subject To Conditions

The following items under Annexure III can be included as part of the duty-free allowance. To claim as duty-free they should have been in the passenger’s possession abroad or should be purchased from a duty-free shop. Items exceeding the total allowance value will be charged as general baggage.

Annexure III

1. Video Cassette Recorder (VCR), Video Cassette Player (VCP), Video Television Receiver (VTR) or Video Cassette Disk (VCD) Player
2. Digital Video Disc (DVD) player
3. Music System
4. Air-Conditioner (AC)
5. Microwave Oven
6. Word Processing Machine
7. Fax Machine
8. Portable Photocopying Machine
9. Washing Machine
10. Electrical or Liquefied Petroleum Gas Cooking Range
11. Personal Computer (Desktop Computer)
12. Laptop (Notebook Computer)
13. Domestic Refrigerators (below 300 litres capacity)

Provisions Regarding Unaccompanied Baggage (Cargo)

Passengers may often send their household items to India as unaccompanied baggage through air, sea or land cargo.

• Only used personal articles can be imported duty-free.
• All other items will be charged Customs Duty at 38.5%.
• The Baggage Rules are also applicable to unaccompanied baggage.

The passenger must send all unaccompanied baggage which has been in his possession abroad within one month (30 days) after arriving in India. In case of delay, special approval must be obtained from the Assistant Commissioner of Customs or Deputy Commissioner of Customs.

The unaccompanied baggage may land in India up to 2 months before the passenger’s arrival or within such period, not exceeding one year, as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may allow (due to valid reasons).

Documents Required for Sending Cargo

The following documents may be required if you are sending unaccompanied baggage as cargo:

• Original passport for Customs clearance
• Valid visa or PIO/OCI card for non-Indian Passport
• Address proof in India if you are opting for door-to-door delivery
• Baggage Customs Declaration Form signed by the owner
• Packing list of items in each carton box

It is a good practice to have a complete list of goods in each carton box. For the electronic items, it would be a good idea to keep the purchase bill so that the Customs officer can calculate the fair value.

Depending on the country of departure you may also need other documents for presenting to the local authorities. Please check with your cargo service handler if they require any other documents.

Depending on the location of clearance, the owner may need to physically appear at the Customs port. In case the owner cannot be present, a power of attorney can be executed. Please check with your clearing agent for more information.

Transfer of Residence: Import of Firearms

Even though the import of firearms to India is prohibited, persons transferring their residence to India for a minimum period of one year are allowed to import one firearm of permissible bore subject to the following conditions:

• The firearm should have been possessed and used abroad by the passenger for a minimum period of one year.
• The passenger should have a valid arms license from the local authorities.
• Applicable duty should be paid.
• The firearm, after clearance, shall not be sold, loaned, transferred or parted with in any manner during the lifetime of the passenger.

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Frequently Asked Questions

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Related Articles:

1. Complete Guide to Indian Customs Duty-Free Allowance
2. Indian Customs Rules For Electronic Items
3. Indian Customs Rules for Carrying Cash
4. Indian Customs Rules for Electronic Items
5. Indian Customs Declaration Form (With Updated Rules)
6. Atithi Mobile App for Customs Declaration

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Reference: CBIC