Customs exemption for gifts imported as baggage enables duty-free import with specified declaration requirements for public servants and foreign dignitaries. Exemption permits duty-free import of articles of gift brought as baggage by specified classes of Indian officials and by foreign dignitaries for onward gifting, contingent on making the statutory declaration under section 77 of the Customs Act and declaring at clearance that the importer belongs to the Schedule's classes or that the foreign dignitary's gifts are to be gifted to persons in those classes.