Indian Customs is facing a growing challenge in dealing with the import of ultra-luxury watches—often worth crores—being brought into the country by affluent passengers who claim them as “used personal effects.” With no clear rule on what qualifies as “used,” and no value threshold for such items, authorities are increasingly concerned that the personal baggage route is being exploited to bypass duties.
Watches from high-end brands like Richard Mille and Patek Philippe, which are not officially available in India, are reportedly being worn by returning passengers while the packaging and invoices are shipped separately through couriers or checked baggage. The absence of documents, coupled with the high value of the watches—many starting at ₹1 crore—raises red flags for Customs, but officers are often left in a legal grey zone.
There is no prescribed duration for use to qualify a watch as a “used personal effect,” making enforcement difficult. Adding to the challenge, passengers such as film stars, business tycoons, and influencers often arrive at terminals with minimal Customs staffing, where officers may hesitate to question them without clear procedural backing.
The current Baggage Rules do not set a value limit for watches worn on the person. Until the 1990s, a limit of ₹500 was in place, but it was later removed. In the absence of updated rules, many such luxury items go undeclared and untaxed.
As per the sources, the Central Board of Indirect Taxes and Customs (CBIC) has identified revision of the Baggage Rules as part of its action plan for 2025, expected by June 30. Among the proposals under consideration is a threshold value for specific luxury items—such as watches—beyond which mandatory declaration would be required.
Historically, loopholes in Customs schemes have been used to import high-value goods like golf carts and kitchen appliances under unrelated categories. Authorities fear a similar misuse of the baggage channel is now underway with luxury watches and other high-end goods.
Legal clarity is also expected from ongoing High Court cases concerning the interpretation of “used personal effects.” Until then, Customs officers are advised to exercise discretion, fairness, and due diligence when assessing such high-value items.
Click Here To Read Case Compilation On Seizure Of Personal Jewelry Under Customs Baggage Rules
