USA to India: Transfer of Residence Overview

India and the United States of America share a strong bilateral relationship when it comes to tourism.

You will observe that a great deal of people moves between both the countries for business, holiday, and transfer of residence.

Regular baggage allowance works for business trips and holiday vacations.

However, transfer of residence entitles you to additional benefits. Switching countries also invites a huge amount of documentation.

And, then there are other regulations that you must comply with.

Therefore, this article has the necessary details regarding the transfer of residence from the USA to India to guide you well.

Let’s start with the basics:

What is the Transfer of Residence (TR)?

Transfer of Residence or TR is a set of custom rules that relaxes restrictions on the transfer of goods.

The rules to import goods and belongings are much more relaxed as opposed to baggage allowance for a holiday or a business trip.

You do not have to pay customs duty for some items that you would have to otherwise.

Similarly, items that carry heavy custom duty may be reduced when it comes to the transfer of residency.

You already know, this article deals with Transfer of Residence from the USA to India.

Therefore, if you are an overseas citizen of India, or someone returning to the country, you can avail of transfer of residence benefits as mentioned here.

But first, ascertain whether or not you are eligible for the same.

Eligibility

The transfer of residency applies to those moving to India or to those engaged in a profession overseas.

The duration of the stay dictates the degree of benefits. In other words, the longer you wish to stay the more relaxed benefits you may avail.

The minimum duration of stay is 3 months. Further, if the duration of stay in less than 2 years, only Indian passengers can avail of the transfer of residency benefits.

Let’s look at the TR benefits based on the duration of stay:

3 to 6 Months of Stay

The transfer of residence rules state that if you have an Indian tourist visa or are moving to India form the USA and plan to stay between 3 to 6 months in the country, you may carry the following household articles without paying customs duty:

1. Video Cassette Player
2. Electrical or Liquefied Petroleum Gas Cooking Range
3. Refrigerators with a capacity up to 300 liters
4. Air Conditioner
5. Word Processing Machine
6. Fax Machine
7. Music System
8. Microwave Oven
9. Personal Computers
10. Laptop
11. Portable Photocopy Machines

Please keep in mind that the aggregate value of the items must not exceed 60,000 rupees.

Further, there are items as per the Annexure 1 for which you have to pay customs duty. These items include:

1. Fire Arms
2. Weapons cartridges exceeding 50 units
3. Ornaments such as gold, silver, and so on
4. Alcoholic drinks, liquors, etc. with quantity exceeding two liters
5. More than 200 cigarettes, 50 cigars, or 250 gm tobacco
6. Flat Panel Television.
7. Video cameras with television receivers
8. Deep Freezer
9. Dishwasher

6 to 12 months Duration of Stay

If your duration of stay is 6 to 12 months, TR benefits include clearance of personal and household items with an aggregate value of 1,00,000 rupees, without paying any duty.

This also applies to those that have a visa to India from the USA for the duration mentioned earlier.

Also note that some articles, such as those under annexure 1 and 2 may be liable for customs duty.

Duration of Stay Exceeding 1 Year

Similarly, household and personal items up to the aggregate value of 2,00,000 rupees carry no duty. However, this doesn’t include items other than those mentioned in Annexure 1 and 2.

Also, if you are an Indian Passenger and have availed of this transfer of residency benefits, you cannot use the privilege again for the next three years.

Duration of Stay Exceeding 2 Years

The clearance of personal and household articles with a value of up to 5,00,000 rupees is duty-free.

However, make sure you do not include any item listed under the annexure 1 and 2. Also, you must not have availed this benefit in the preceding 3 years.

Further, in the preceding two years of duration, the passenger’s total stay in India must be up to or less than 6 months.

More importantly, the arrival date of the passenger in the country must be after at least two years of stay overseas.

Concessional Rate of Duty

The concessional rate of duty is available to those who meet a few conditions. A person transferring residence from the USA to India must:

• hold a valid passport as per the passport act of 1967.
• be returning to India after one year, during the two years immediately preceding their arrival in India.

Also, such a person must be on a bonafide transfer of residence to India. They are also allowed:

1. Clearance of articles in the Annexure 2, regardless of old or new, at a 15% concessional rate of duty
2. Clearance of articles and items in Annexure 3, free of duty.

Transfer or Import of Professional Equipment as Baggage

You can state those portable apparatus, equipment, appliances, instruments, as professional equipment that come in normal use in the profession the returning passenger practices.

For instance, this may include items that a carpenter, mason, plumber, or a welder may use.

Items of common use do not come under this category. Some examples of this are cameras, Dictaphones, Cassette Recorders, Personal Computers, Typewriters, and so on.

So, if an Indian passenger returns after a stay of at least 3-months abroad, he/she can carry professional equipment up to the value of 20,000 rupees.

Similarly, if this duration is 6 months, a passenger may carry equipment of value up to 40,000 rupees.

Transfer or Import of Jewelry

Transfer of residence rules that dictate the import of jewelry may vary based on the gender of the passenger.

However, the passenger must be residing in the USA for more than a year.

So, male passengers may carry jewelry having a value of up to 10,000 in the bonafide baggage.

On the other hand, female passengers can carry jewelry with a value of up to 20,000.

• Importing Gold as Baggage

For you to carry gold as baggage, you must meet a few conditions. These include:

1. Passengers must be of Indian origin. Or, the passenger must hold a valid passport as per the passport act 1967.
2. The passenger must be returning after at least 6 months (short visits of less than thirty days does not count)

Not only this, there are other conditions too:

1. You must settle the duty in a convertible foreign currency.
2. The weight of the gold must not exceed 10 gm per person.
3. The passenger must have not brought any gold on any of his/her previous visits to India (not even short visits) in the last six months.
4. You cannot import ornaments with stones and pearls.

So, you can bring the gold with yourself when you fly to India or import it within 15 days of your arrival.

• Importing Silver as Baggage

You may import silver as baggage if you are a passenger of Indian origin.

It doesn’t matter even if you are a foreign national or have dual Indian citizenship.

You must, however, hold a valid passport as per the passport act of 1967.

Also, you must follow some conditions, such as:

1. There is a weight limit. The silver including the ornaments must be up to or below 100 kg per person.
2. The passenger must be returning to India after at least 6 months. Short visits do not count as long as the passenger has not already availed of such privilege during such visits.
3. 500 per kg and a 2% educational cess must be paid in convertible foreign currency.
4. Ornaments that consist of pearls and stones cannot be imported.

You may bring silver as baggage with yourself, or import it within 15 days of arrival.

• Import of Foreign Currency

If you are bringing foreign currency into India, you must declare the same in the Currency Declaration Form. There is no maximum limit.

However, it is mandatory to declare the currency, especially if the value of foreign currency notes exceeds US$ 5000.

Or, if the aggregate value of foreign exchange exceeds US$ 10,000. This may include currency notes, traveler checks, banknotes, and so on.

Also, be mindful that the import of Indian currency is not allowed.

However, those passengers that are residents of India can import Indian currency up to 5000.

How to Avail of Transfer of Residence Benefit

A passenger does not need any formal application to avail of the transfer of residence benefits.

However, you may need some documents to import goods through customs.

Such documents include the original passport of the passenger, transfer of residence form, inventory of articles, and declarations and authorizations if necessary.

If you avail of services of movers and packers or shipping companies, they usually take care of all the necessary documentation.

You just need to be present at the time your shipment arrives.

Availing such services is beneficial if the value of the goods that you are importing far exceeds the exemptions under the TR.

So, consider the next time you finalize flight deals to India.

Further, custom brokers may also help you clear articles at the customs.

Therefore, next time you book plane tickets to India and are eligible for transfer of residence benefits, be mindful of all the information mentioned here.

If you wish to refer to any other guide on the transfer of residence benefits, make sure the information is not obsolete.