Import of car

Rules for Importing Second Hand Cars/ Vehicles

The restrictions imposed and conditions placed on import of cars for commercial purposes do not apply in the case of passengers bringing their self used car on Transfer of Residence. However, these car imports should fulfill the following conditions:

• The used car or vehicle should have right hand steering and controls (applicable on vehicles other than 2 and 3 wheelers).
• Autos with capacity of more than 1600cc should have been owned and used by the importer overseas at least for one year. New or second hand cars with less than 1600cc can be bought prior to arrival.
• CIF value of imported cars / vehicles should be calculated for customs duty. CIF stands for Cost of the goods; Insurance; and Freight. Cost in case of new vehicles is the transaction value between the seller and the buyer. In case of old and used vehicles, the cost is calculated by taking the value of the vehicle in the year of manufacture after allowing depreciation at following rates.

Customs Valuation of Used Cars

The value of any car has to be determined for purpose of customs duties. Customs valuation in import duty on cars is determined in the following manner:

• Manufacturer's invoice value is accepted wherever such invoice is produced.
• When no such invoice is made available, the value is determined according to the world car catalogues available with the department or on the basis of manufacturer's price list, wherever available.
• Whenever the value is taken on the basis of World car catalogs, normal trade discounts are allowed to be deducted.
• Value of a second hand car is arrived at in the above manner after allowing the deductions for depreciation explained in the table above, subject to maximum of 70%.
• Total effective customs duty works out to 101.91%, which includes 35% basic customs duty; 10% surcharge on customs duty; 16% additional duty; 24% special excise duty; 0.125% motor vehicle cess; and 4% special additional duty of customs.
• Customs duty payable on cars (in case of completely built unit or CBU) is approximately 111% of the value assessed. It includes 60% on CBU imports plus countervailing duties and other levies. In case of “completely knocked down” or CKD car models which are assembled in country, the custom import tax is only 38 to 48% depending on engine displacement based on EXIM policy and rules framed under it.

more infor:

https://www.chennaicustoms.gov.in/imports/car.htm

Cars older than 3 years from the date of manufacture are not allowed to be imported in India except in following situations:

1. Individuals coming to India for permanent settlement after two years continuous stay abroad provided the car has been in the possession of the individual for a period of minimum one year 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. Specified Charitable/Missionary/Religious institutions
8. Honorary Consuls of foreign countries on the recommendations of the Ministry of External Affairs, Government of India
9. Journalists/Correspondents of foreign news agencies having accredition certificate with the Press Information Bureau, Ministry of Information and Broadcasting, Govt. of India

However, cars should have right hand steering and controls.

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