How to Import Vehicles to India
From Indian celebrities and business magnates to cricketers, many individuals have garnered attention for possessing remarkably stunning imported foreign cars. These vehicles are so captivating that individuals are willing to invest substantial sums to import them into India, a nation with stringent rules and regulations governing the importation of foreign automobiles. The process of importing a foreign vehicle into India is both intricate and time-consuming.
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However, individuals prepared to invest both time and resources into this endeavour can acquire their desired vehicle by adhering to the regulations and completing the requisite procedures. This article aims to outline the process of importing a foreign vehicle into India, along with essential guidelines that must be followed during the importation process.
As previously mentioned, the regulations governing the importation of foreign vehicles into India are considerably stringent compared to other countries. Only foreign vehicles that fully comply with all regulations will be permitted to operate on Indian roads. Below is a breakdown of specifics for various types of foreign cars.
Rules to Follow when Importing New Vehicles to India
- The vehicle can only be imported from the country where it was manufactured or assembled.
- The vehicle must have been built and developed overseas.
- If you are importing a car, then it should be a right-hand drive.
- The vehicle must be brand new and should not have any history of being rented, used, or given out on lease.
- In the case of imported cars, they can enter legally through one of the three naval docks i.e., Mumbai, Kolkata, and Chennai.
- The speedometer of your car or bike should display the statistic in kilometres per hour.
- The headlights on your vehicle must be placed in such a way that properly illuminate the left-hand side of the road.
Rules to Follow when Importing Used Vehicles to India
- The used vehicle that you are looking to import must not be older than three years. It is important you check the manufacturing date before getting it imported.
- In the case of importing a card, it should be a right-hand drive.
- The vehicle must not have been rented, leased, or sold to other parties previously.
- The headlights on your vehicle must be placed in a way that it properly illuminates the left side of the road.
- Used vehicles can also enter India legally through one of the three naval docks i.e., Kolkata, Chennai, and Mumbai.
- You can drive a used vehicle only if it is roadworthy and can be driven on Indian roads. Hence, you will have to obtain a roadworthy certificate which must be valid for at least five years and state that the vehicle is safe to be driven on Indian roads.
- The speedometer of your vehicle must display the statistics in kilometres per hour.
Who Can Import Vehicles to India
- Multinational companies who have their offices in India.
- Physically challenged people.
- Honorary consulate members can also import a vehicle provided they have obtained permission from the Ministry of External Affairs.
- If you have a relative living abroad from whom you can inherit the vehicle.
- Companies that operate out of India but deal with foreign equities.
- Non-resident Indians (NRIs) who have not stayed in India for at least two years before the vehicle is imported to the country.
- Religious bodies and charitable trusts can also import vehicles provided they have proper vehicle registration documents.
- Journalists can also get vehicles imported provided they have a proper accreditation certificate from the Ministry of Information and Broadcasting.
Rules for NRIs looking to Import their Vehicle to India
- If you are an NRI, then you must have resided in India for at least two years before you are eligible to get your vehicle imported.
- You also need to plan to stay in India for one more year after having spent two years already to be able to import your vehicle to India successfully.
- Once you have shifted base, the transfer of your vehicle must take place within six months of your shifting.
- You must not have undertaken a transfer from your current base for at least three years.
- If the engine capacity of your vehicle is between 75cc and 500cc, then all the rules pertaining to new and used vehicles are not considered.
- Once the vehicle is imported, you can sell it for another two years.
- Only a single family member can undertake the transfer procedure.
Prohibited Vehicles
Importing certain vehicles to India is prohibited. It is essential to verify that the vehicle being imported does not meet the following criteria:
- Automobiles with engine capacities ranging from 1,000cc to 2,500cc.
- Heavy-duty motorcycles or bikes with engine capacities ranging from 50cc to 500cc.
- Scooters with engine capacities ranging from 250cc to 800cc.
How to Import a Foreign Car
There are two methods to import a car to India: directly from the manufacturer or through an agent. If you choose to import it yourself, you'll need to manage the necessary documentation and oversee the process independently. Alternatively, an agent can assist you throughout the importation process until the car is registered in the country.
Documentation Requirements: To import a vehicle to India, the following paperwork is necessary:
- Vehicle Invoice
- Insurance Policy
- GATT Declaration
- Bank Draft
- Bill of Lading or Sea Waybill
- Import License
- Purchase Order or Letter of Credit
- Test Report
- Duty Exemption Entitlement Certificate (DEEC) or Duty Entitlement Pass Book (DEPB) or Export Credit Guarantee Corporation of India (ECGC), or other relevant documents.
Note: Please note that additional documents may be required during the actual import process.
Things to Consider Before Importing a Car to India
Importing a vehicle into India is a meticulous process, necessitating careful consideration of several factors before initiation. Here are key points to bear in mind:
- Import Duty on Cars: Understanding the import duty on cars is crucial. Cars exceeding a CIF (Cost, Insurance, and Freight) value of US Dollars 40,000 are subject to a 100% customs tax, while those below US Dollars 40,000 incur a 60% import duty. Additionally, used vehicle imports attract a 125% tax.
- Import Duty on Bikes: For bikes, expect to pay approximately 116% of the CIF value as import duty.
- Registration of the Vehicle: After importation, the vehicle must be registered at the nearest Regional Transport Office (RTO) in India. Registration and road tax fees are separate from import duty and vary based on the vehicle type and value.
FAQs on How to Import vehicles to India
- Who can import left-hand driving cars to India?
Only car manufacturers can import left-hand driving cars to India.
- Can I import vintage cars manufactured in the 1920s to India?
No, you can only import vehicles manufactured on or after 1 January, 1950. Hence, vehicles manufactured in the 1920s cannot be imported.
- I am an NRI who stayed in India for only one year. Can I get my car imported to India?
You must have resided in India for at least two years in order to get your car imported. Since you do not meet the criteria, you cannot get your vehicle imported to India.
- Where should a vehicle be submitted after getting it imported to India?
After importing a vehicle into India, it must undergo testing to ensure compliance with the Central Motor Vehicle Rules, 1989, Exim Policy, 2001, and Central Motor Vehicles Act, 1988. This testing can be conducted at several authorised agencies, including the Vehicle Research and Development Establishment (VRDE) under the Ministry of Defence in Ahmednagar, the Automotive Research Association of India (ARAI) in Pune, and the Central Farm and Machinery Training and Testing Institute (CFMTT) in Budni, Madhya Pradesh. These tests are essential to verify the vehicle's adherence to safety, emission, and performance standards mandated by Indian regulations.
- What does vehicle homologation entail?
Vehicle homologation is the certification process by which an authority verifies that a vehicle meets the required standards for safe and legal use, ensuring it complies with all applicable regulations and criteria.
- What are the expenses associated with importing a car to India?
Importing a car into India typically incurs costs that are 150 to 200% higher than the original price of the vehicle, considering various duties, taxes, and fees involved in the import process.
- Is it possible to import car engines to India?
Yes, car engines can be imported to India, with new engines being comparatively easier to import than used ones. However, specific criteria, including engine specifications, must be met, as failure to comply may result in significant penalties for the importer.
- Can Non-resident Indians (NRIs) import cars into India?
NRIs who have not lived in India for a minimum of two years can import cars to the country. Depending on whether the vehicle is new or used, they may need to have owned it for at least one year before initiating the import process.
- How can vintage cars be imported into India?
Vintage cars manufactured after 1 January 1950 can be imported into India. The process for importing these vehicles is similar to that of importing newer vehicles, but it's important to note that the import is restricted to actual users only.
- Can I import vehicles with engine capacities falling within specific ranges to India?
Importing vehicles to India with engine capacities ranging from 1,000cc to 2,500cc for cars, 50cc to 500cc for heavy-duty motorcycles, and 250cc to 800cc for scooters is prohibited.
- What are the two methods for importing a foreign car into India?
You can import a car directly from the manufacturer or through an agent. If you opt for direct importation, you'll be responsible for managing the required documentation and overseeing the process independently. Alternatively, an agent can assist you throughout the importation process until the car is registered in India.
- What documents are necessary for importing a vehicle to India?
Essential documents for importing a vehicle to India include the vehicle invoice, insurance policy, bank draft, GATT declaration, bill of lading or sea waybill, import license, purchase order or letter of credit, test report, and Duty Exemption Entitlement Certificate (DEEC) or Duty Entitlement Pass Book (DEPB) or Export Credit Guarantee Corporation of India (ECGC), among others. Additional documents may be required during the actual import process.
- What factors should be considered before importing a car to India?
Before importing a car to India, it's crucial to understand the import duty applicable. Cars valued above US Dollars 40,000 incur a 100% customs tax, while those below face a 60% duty, with used vehicles taxed at 125%. Similarly, bikes may incur approximately 116% of the CIF value as import duty. Additionally, the vehicle must be registered at the nearest Regional Transport Office (RTO) in India after importation, with registration and road tax fees separate from import duty.
- What is the import duty for cars and bikes?
For cars, those exceeding a CIF value of US Dollars 40,000 incur a 100% customs tax, while those below US Dollars 40,000 face a 60% import duty. Used vehicles attract a 125% tax. On the other hand, bikes may require payment of approximately 116% of the CIF value as import duty.
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