Importing a car of foreign make into India is really a nuisance. You have to move the authorities which article will help you through the process.
The fundamentals:
The car has to be a right-hand-drive. Left-hand drive automobiles are prohibited from entering the nation (except for consulates and some other special categories). The Indian Government has entirely banned individuals importing cars whose engine capacity ranges from 1000 - 2500 cc. New Cars can be imported via the customs port at Mumbai, Calcutta and Chennai. Used cars could be imported in the Mumbai port only. Also, the car or truck cannot be over the age of 3 years (from the date of manufacture). The Exim policy of 2001 lifted quantitative restrictions on importing used cars.
On customs duty:
1) The ex-factory prices are used for calculating customs duty.
2) The customs duty is a standard 102.16% on new cars
3) The customs duty is pegged at 159.87% on used cars.
4) Completely knocked down cars attract a customs duty of anywhere between 38 to 48%.
5) Under the EPCG scheme, hotels / hospitality establishments are subject to minimal duty / taxes. However, they're subject to certain foreign exchange requirements.
6) If you import from Europe, you will get a refund of the VAT (useful tax).
On transfer of residence:
The most popular method of importing an automobile to India is via the "Transfer of residence" clause, where any Indian (settled abroad) who is relocating to India can get his car along. He must have owned the vehicle for atleast Twelve months within the foreign country. Upon import, the vehicle can't be sold for 2 years (in the date of import). The NRI importing the car should have lived overseas for at least two year duration. The payment for that car must have occurred abroad. The vehicle must be imported within 6 months of the NRIs arrival into India. Under this scheme, the customs duty must be paid in foreign currency. If your handicapped person is importing the vehicle, then your customs duty may be paid in Indian rupees. Official permission is required before selling the vehicle in India.
On who are able to import:
Anyone can import a car whose value is much more than USD 40000. There are no restrictions on the imports of those cars. So as the majority of the exotics are above that value, they may be imported freely and never necessarily on T.R. The methodology adopted by Customs authorities in assessing duty on an automobile is dependant on the ex-factory price about the date of original purchase.
Adjustments are made for:
Foreign nationals (including persons of Indian origin) married to Indian nationals, foreign nationals employed in India, branch/offices of foreign firms, companies and institutions founded in India, companies incorporated in India having foreign/NRI equity, accredited journalists/correspondents of foreign news agencies, Indian firms executing contracts abroad, charitable and missionary institutions, physically handicapped persons and honorary Consuls of Foreign Governments.
On Paperwork and Documentation required:
Cars costing more than $40,000 do not have to undergo homologation in the ARAI. When the cars value is less than $40,000, the vehicle has to be submitted for testing towards the VRDE (Vehicle Research and Development Establishment), Ahmednagar, from the Ministry of Defence or the ARAI (Automotive Research Association of India), Pune or the Central Farm and Machinery Training and Testing Institute, Madhya Pradesh or other notified testing agency by the Government.
The importing agency is expected, during the time of importation, to submit a certificate from a testing agency (notified by the Central Government) that the second hand vehicle being imported has been tested immediately before shipment which the automobile conforms to any or all the regulations specified by the Cars Act, 1988. The 2nd hand or used vehicle imported into India should have a minimum roadworthiness for a period of Five years in the date of importation into India with assurance for providing service facilities within the country throughout the five year period. For this purpose, the importer shall, during the time of importation, submit a declaration indicating the period of roadworthiness in respect of every individual vehicle being imported, based on a certificate from the testing agencies, which the Central Government may notify in this regard.
Miscellany:
1) What's in the above list is what the guidelines say. Please don't say that you saw a LHD (or something like that) since these rules are broken consistently. Bribing is rampant plus some of the rules you read above may have been bypassed (unfortunately).
2) Beware of dealer rackets - There have been several well-documented cases of the imported car dealer manipulating the import documentation. In case the long arms of law get caught up, it is the owner (and never the dealership) who is liable to pay duties, taxes and fines.
3) The rebadging racket is rampant to be able to qualify for lower custom duties. For e.g. a BMW M5 might be rebadged to some BMW 525 and therefore show a lower invoice price.
4) It's best to do the hiring of the competent and reputable clearing agent who's well familiar with the process of importing a car. This can save you lots of running around and headaches.
5) Since the customs duty on spare parts or completely knocked down kits is considerably lower, it is not uncommon for an importer to strip a car (of seats, headlights, tyres etc) and document it as a CKD.
Author Resource:
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