Customs Duties on Furniture – What You Need to Know

If you’re moving a sofa, a set of chairs, or a whole showroom’s worth of items across borders, customs duties are the first thing that can hit your budget. Nothing sudden and confusing, just a few numbers and documents that, once understood, make the process smooth.

Identify the Right HS Code

Every product has a 6‑digit Harmonized System (HS) code that tells customs officers what you’re bringing in. Furniture usually falls under heading 9403 (other furniture and parts). Within that, a wooden chair might be 9403.10, while a metal office desk could be 9403.20. Getting the exact code matters because the duty rate is tied to it.

Calculate the Duty Rate

India’s basic customs duty for most furniture sits around 10 %–20 % of the assessable value, but it can change based on material, design, and whether the item is considered luxury. For example, premium leather sofas may attract a higher rate than plain plywood tables. Always check the latest rate on the CBIC website or ask your customs broker.

Don’t forget additional taxes like the Integrated Goods and Services Tax (IGST), which is applied on top of the customs duty. The total landed cost = FOB price + freight + insurance + customs duty + IGST + any cess.

Prepare the Essential Documents

Missing paperwork is the fastest way to get stuck at the port. The basic set includes:

• Commercial Invoice (showing value, HS code, and country of origin)
• Bill of Lading or Airway Bill
• Packing List
• Certificate of Origin (if you’re claiming a preferential rate)
• Import License (required for some wood products)

Having these ready in advance cuts clearance time from days to hours.

Tips to Reduce Duty Costs

1. Use the correct HS code. A mis‑classified item can attract a higher rate or a penalty. 2. Leverage free‑trade agreements. If your furniture comes from a country with a PTA, you might qualify for zero duty. 3. Consider component shipping. Sending furniture in parts (e.g., flat‑packed) often falls under a lower duty bracket. 4. Work with a reputable customs broker. They know the shortcuts and can advise on exemptions. 5. Plan for duty refunds. If you re‑export unsold stock, you can claim back the duty you paid.

Remember, duty rates can shift with policy changes, so keep an eye on announcements from the Ministry of Commerce.

Common Pitfalls and How to Avoid Them

Many traders stumble over valuation. Customs uses the transaction value (the price you actually paid) plus freight and insurance. Under‑declaring the value to save on duty is illegal and can lead to fines or confiscation. Also, don’t ignore the anti‑dumping duties that sometimes apply to furniture from specific countries.

Finally, timing matters. Shipping during peak seasons can cause longer hold-ups at ports, leading to storage charges that eat into any duty savings you achieved.

By mastering HS codes, staying on top of duty rates, and keeping paperwork tidy, you’ll turn customs from a roadblock into a routine step. Whether you’re a small boutique or a big‑scale manufacturer, these basics apply to every shipment of chairs, tables, or lounge sets.