CUSTOM-INFO MISSION RELOCATION MOVERS BUSINESS FAQ(DOMESTIC)
  • HOUSEHOLD GOODS

  • MOTOR CAR

  • PETS
    • MOTOR CAR

    SELECT THE TOPIC ON WHICH YOU WANT TO GET THE INFORMATION :
    1. IMPORT OF MOTOR CARS INTO INDIA

    2. OTHER INFORMATION RELEVANT TO THE IMPORT OF MOTOR CARS :
      1. DOCUMENTS REQUIRED
      2. DEPRECITION
      3. CURRENT DUTY RATES
      4. METHOD OF CALCULATION OF DUTY
      5. METHOD OF VALUATION
      6. LIST OF STANDARD / OPTIONAL ACCSSORIES
    Back
    IMPORT OF MOTOR CARS INTO INDIA

    Import of motor cars into India is restricted. Motorcars can be imported only by those eligible importers covered under a Public Notice issued to this effect or those who have a valid import license. Provisions of PN 3 (RE-2000) / 1997-2000 dated 31st March 2000 are given below.
    Passenger cars / jeeps / multi utility vehicles etc. which are in the restricted category may be 1imported without a license on payment of full customs duty by the following categories of importers.
    1. Individuals coming to India for permanent settlement after two years continuous stay abroad
    2. Resident Indians presented with a car as an award in any international event / match / competition
    3. Legal heirs/successors of deceased relatives residing abroad.
    4. Physically handicapped persons
    5. Companies incorporated in India having foreign equity participation
    6. Branches / offices of foreign firms
    7. Charitable / Missionary/ Religious Institutions registered as per the law relating to the registration of the societies or trusts or otherwise approved by the Central or State Government, subject to the condition that the importer is an established institution and is functioning for the common benefit of the community and subject further to production of necessary clearance under the Foreign Contribution (Regulation) Act, 1976 (as amended by PN 18 (RE-2000)/1997-2000 dt 30/06/2000.
    8. Honorary Consuls of Foreign Governments on the recommendations of the Ministry of External Affairs, Government of India.
    9. Journalists/ correspondents of foreign agencies having accreditation certificate with the Press information Bureau, Ministry of Information and Broadcasting, Government of India
    10. All the above categories shall be entitled to import only one vehicle except categories (e) and which shall be entitled to import maximum of three vehicles. Persons in category (d) shall be entitled to import only specially designed vehicles suitable for use by handicapped.
      All such imports shall carry a "NO SALE" condition of two years which shall be endorsed by the Customs authorities on the passport / registration documents at the time of import and by the Regional Transport Authorities when such vehicles are presented for registration in India.
      All such imports, except by the physically handicapped persons, shall not involve any foreign exchange remittance from India directly or indirectly. The DGFT may, however, permit relaxation of these conditions or imports by any other category not listed in this Public Notice in special circumstances.
      All bonds / bank guarantees executed by importers of cars / two wheelers etc. prior to 31.03.1997 where the vehicle has not been transferred, shall be deemed to have been discharged with the issue of this Public Notice.
    Below as amended by Ntfn 4 (RE-2001) dated 31.3.2001:

    (5)(I) A second hand or used vehicle (including all the vehicles other than Railway or Tramway) for the purposes of this Chapter shall mean a vehicle that:
    1. has been sold, leased or loaned prior to importation into India; or
    2. has been registered for use in any country according to the laws of that country, prior to importation into India;
    (II) The import of second hand or used vehicles shall be subject to the following conditions:
    1. The second hand or used vehicle shall not be older than three years from the date of manufacture.
    2. The second hand or used vehicle shall:
      1. Have right hand steering, and controls (applicable on vehicles other than two and three wheelers);
      2. Have a speedometer indicating the speed in Kilometers; and
      3. Have photometry of the headlamps to suit "keep left" traffic.
    3. In addition to the conditions specified in (a) and (b) above, the second hand or used vehicle shall conform to the provisions of the Motor Vehicles Act, 1988 and the rules made there under.
    4. Whoever being an importer or dealer in motor vehicles who imports or offers to import a second hand or used vehicle into India shall,
      1. At the time of importation, submit a certificate issued by a testing agency, which the Central Government may notify in this regard that the second hand or used vehicle being imported into India has been tested immediately before shipment for export to India and the said vehicle conforms to all the regulations specified in the Motor Vehicles Act, 1988 of India and the rules made there under.
      2. At the time of importation, submit a certificate issued by a testing agency, which the Central Government may notify in this regard that the second hand or used vehicle being imported into India has been tested immediately before shipment for export to India and the said vehicle conforms to the original homologation certificate issued at the time of manufacture.
      3. On arrival at the Indian port but before clearance for home consumption, submit the vehicle for testing by the Vehicle Research and Development Establishment, Ahmednagar of the Ministry of Defence of the Government of India or Automotive research Association of India, Pune or Central Farm Machinery Training and Testing Institute, Budni, Madhya Pradesh for tractors, and such other agencies as may be specified by the Central Government, for granting a certificate by that agency as to the compliance of the provisions of the Motor Vehicles Act, 1988 and any rules made there under.
      4. Import of these vehicles shall be allowed only through the customs port at Mumbai.
    5. The second hand or used vehicles imported into India should have a minimum roadworthiness for a period of 5 years from the date of importation into India with assurance for providing service facilities within the country during the five year period. For this purpose, the Importer shall, at the time of importation, submit a declaration indicating the period of roadworthiness in respect of every individual vehicle being imported, supported by a certificate issued by any of the testing agencies, which the Central Government may notify in this regard."
    (6)(I) A new imported vehicle (including all the vehicles other than Railway or Tramway) for the purposes of this Chapter shall mean a vehicle that:
    1. Has not been manufactured/assembled in India; and
    2. Has not been sold, leased or loaned prior-to importation into India; or
    3. Has not been registered for use in any country according to the laws of that country, prior to importation into India.
    (II) The import of new vehicles shall be subject to the following conditions:
    1. The new vehicle shall:
      1. Have a speedometer indicating the speed in Kilometers per hour;
      2. Have right hand steering, and controls (applicable on vehicles other than two and three wheelers);
      3. Have photometry of the headlamps to suit "keep-left" traffic; and
      4. Be imported from the country of manufacture.
    2. In addition to the conditions specified in (a) above, the new vehicle shall conform to the provisions of the Motor Vehicles Act, 1988 and the rules made there under, as applicable, on the date of import.
    3. Whoever being an importer or dealer in motor vehicles who imports or offers to import a new vehicle into India shall,
      1. At the time of importation, have valid certificate of compliance as per the provisions of rule 126 of Central Motor Vehicle Rules (CMVR), 1989, for the vehicle model being imported, issued by any of the testing agencies, specified in the said rule;
      2. Be responsible for all the provisions assigned to the manufacturer as per Rules 122 & 138 of CMVR, 1989 and for issuing Form 22, as per provisions of CMVR, 1989;and
      3. Give an undertaking in writing that the proof of compliance to conformity of production as per rule 126A of CMVR shall be submitted within six months of the imports. In case of failure to do so, no further import of new vehicle of that model shall be allowed thereafter.
    NOTE : The import of new vehicles shall be permitted only through the Customs port at Nhava Sheva, Calcutta, and Chennai.

    The provisions of this notification will not apply to the imports of new vehicles
    1. For the purpose of certification as per Para c (i) above;
    2. For the purpose of defence requirements; and
    3. For the purpose of R&D by vehicle manufacturers.
    If the importer is not eligible under any of the above categories, and still imports a vehicle, the car will be confiscated. If the customs release the car, it would be on payment of redemption fine and personal penalty .
    Back
    OTHER INFORMATION RELEVANT TO THE IMPORT OF MOTOR CARS

    Documents required at the time of clearance :
    1. Affidavit duly notarized
    2. Purchase invoices, value evidence
    3. Bill of Lading
    4. Foreign registration of vehicle duly translated in English and attested by the Indian Embassy or High Commission if the original is not in English.
    5. Insurance policies
    6. Passport(s)
    7. O.G.L. Declaration
    8. Bankers certificate of conversion of foreign exchange for duty payment.
    Back
    DEPRECIATION

    Depreciation is allowed from the date of registration of the vehicle up to the shipment date of the car or departure of the passenger from the foreign country (whichever is earlier).

    Depreciation TABLE :
    1. @ 4.0 % per Quarter in the 1st year     Total = 16% p.a.

    2. @ 3.0 % per Quarter in the 2nd year     Total = 12% p.a.

    3. @ 2.5 % per Quarter in the 3rd year     Total = 10% p.a.

    4. @ 2.0 % per Quarter in the 4th year     Total = 08% p.a.

    5. @ 2.0 % per Quarter in the 5th year     Total = 08% p.a.

    6. @ 2.0 % per Quarter in the 6th year     Total = 08% p.a.

    7. @ 2.0 % per Quarter in the 7th year     Total = 08% p.a.
    MAX = 70%
    Back
    CURRENT DUTY RATES (2000-2002)

    Motor Car = 182 % (approx)

    New Motor Car = 85.6 % approx

    Break up of the customs duty for used cars is as follows:
    Basic Customs Duty 35% (BCD)
    Excise Duty (ED) 16% (Counter Veiling Duty-CVD)
    Special Additional Duty 4% (SAD)
    Cess 0.125 %
    Back
    METHOD OF CALCULATION OF DUTY

    Value of the imported car : Rs 100 (a)

    Basic customs duty ( 35% ) : Rs 35 (b)

    CVD 16% + 16% on (a+b) : Rs 43. 2 (c)

    SAD 4 % on (a+b+c) : Rs 7.128 (d)

    Cess 0.125% on (a+b+c+d) : Rs 0.23166 (e)

    TOTAL DUTY PAYABLE (b+c+d+e) : Rs 85. 559

    Duty as a percentage on the value of the imported goods 85. 56 %
    Back
    METHOD OF VALUATION (SAMPLE CASE STUDY)

    List Price (in the year of manufacture) : US $ 20000.00

    Less trade discount (15%) : US $ 03000.00

    Net Invoice/Manufacturers Price : US $ 17000.00

    Add extra fittings / optional items : US $ 03000.00

    Less Depreciation for use Abroad (40%) : US $ 08000.00

    Balance value : US $ 12000.00

    Add Estimated or Actual Freight : US $ 02000.00

    Balance value : US $ 14000.00

    Add Insurance 1.125% : US $ 00157.50

    CIF VALUE : US $ 14157.50

    Add Landing charge (1%) : US $ 00141.57

    LANDED COST : US $ 14299.07

    Value of the car for duty purposes : Rs 686355/- ( Exchange rate 1 USD = Rs 48 )

    Duty payable on above value @ 85.56% : Rs 587245/-
    Back
    List of Standard/Optional Accessories with the Imported Car
    1. Electrically operated Windows (front only/all)
    2. Tinted Glass (all / rear only)
    3. Laminated Glass
    4. Air Conditioner Automatic Climate Control
    5. 5 Light Alloy Wheels
    6. Metallic Paint
    7. Central Locking System
    8. Electric Sliding Roof
    9. Head Light Wiper Unit
    10. Power Operated Seats
    11. Dual Tone Horn
    12. Radio/Radio Cassette Recorder/Radio,C.D/C.B.changer
    13. Electrically/manually operated steering
    14. Automatic Transmission - 3 speed/4 speed/5 speed
    15. Electrically Operated Curtains
    16. Refrigerator Box / Mini Bar
    17. Emission Control System
    18. Anti-theft warning system
    19. Sports Chassis
    20. Electric Arial/Antenna
    21. Self Leveling Suspension on rear / rear & front
    22. Electrically adjustable front right/left seats
    23. Electrically adjustable rear right seat(s) / head rests
    24. Adaptive damping system on from & rear
    25. Leather exclusive upholstery
    26. Foldable Arm Rest
    27. Sun Visors with Illuminated Mirror
    Back