Passenger automobilies including Sports Cars, Jeeps, SUV, Multi-Utility Vehicles and Motor Cycles etc. are restricted items of import and can be imported against an import license. However individuals coming to India on Transfer of Residence after two years continuous stay abroad and other importers as specified in Public Notice No. 3(RE/1997-02) of Directorate General of Foreign Trade, New Delhi, may import these vehicles without a license but on payment of customs duty .
The Imported Vehicle should have right hand steering and controls.
Indian nationals coming to India for permanent settlement:
Used household goods and personal effects, which have been owned and used by the shipper for at least 6 months and are not part of other concessions
Transfer of Residence Rules are subject to change from time to time
Check the Latest Duty Structure
IMPORT OF PASSENGER CARS
Import of passenger Cars / Jeep / Multiutility vehicles:
Motor cars, Motor cycles and scooters whether new or old imported into India are chargeable to duty on the basis of their list price prevailing in the country of the their manufacture on the date on which a bill of entry is presented. However, trade discount and depreciation on the value are deductible from the price list but freight from the country of manufacture and insurance charges are added. The landing charges are also added to this to arrive at the final assessable value.
Homologation is the process of certifying that a particular car is roadworthy and the Pune-based Automotive Research Association of India (ARAI) provide this clearance. According to existing norms, every original car model brought into the country by an individual or a manufacturer must have homologation clearance. Even domestic car manufacturers need a homologation certificate for new models. There are some exclusions as well
- Manufacturers can import left hand drive vehicles only for testing and research purposes.
- Individuals importing top-end cars can waive off the testing — or homologation — requirements. Any individual can import a vehicle priced above Rs 20 lakh without sending it for road-worthiness tests.
- Import of new vehicles is only permitted through Customs ports at Nhava Sheva, Kolkata, Chennai, Delhi Air Cargo and at ICD, Tughlakabad
For Non Residential Indians (NRIs)
Individuals coming to India for permanent settlement after two years of continuous stay abroad can bring in a car provided the vehicle has been in their possession for at least one year abroad. This now ensures that individuals coming to India do not bring in an absolutely new car.
Payment of Custom Duty for Import of cars and vehicles
In case of Indian nationals or foreign nationals of Indian origin returning to India for permanent settlement, custom duty can be paid in rupees derived by sale of foreign exchange or by debit to their NRE/FCNR accounts held in India or out of the funds held in their RFC account. In such cases, the authorized dealers will have to issue a certificate to that effect for submission to the Customs authorities. It will also be in order for the authorized dealers to open and maintain special non-convertible accounts in the name of the above categories of persons with funds derived either by remittances from abroad or by debit to their NRE/FCNR/RFC account in India for the purpose of paying custom duty. The certificates issued by authorized dealers should, however, bear a clear superscription that the same have been issued for submission to the customs authorities for payment of custom duty, after assessment thereof.