Car Shipping to India

Importing a Vehicle in to India

The government has the following requirements for importing a new vehicle:

• It must be completely manufactured and assembled outside of India
• It must be imported from the country in which it was manufactured
• It must not have been registered, sold, leased or loaned before importation
• It must have right-hand steering, controls and headlights suitable for driving on the left side of the road (applicable to all vehicles with the exception of two- and three-wheelers)
• It must have a speedometer that displays the speed in kilometres per hour
• It can be imported only via the Indian customs ports at Mumbai (Nhava Sheva), Kolkata or Chennai
• It must conform to the provisions of the Central Motor Vehicles Act of 1988The government has the following requirements for importing a used vehicle:
• Importing a Used Vehicle

• It cannot have been manufactured more than three years previously
• It must have been previously registered, sold, leased or loaned before importation
• It must have a roadworthiness certificate valid for at least five years after the date of importation
• It must have right-hand steering, controls and headlights suitable for driving on the left side of the road (applicable to all vehicles with the exception of two- and three-wheelers)
• It must have a speedometer that displays the speed in kilometres per hour
• It can be imported only through the Indian customs port at Mumbai (Nhava Sheva)
• It must conform to the provisions of the Central Motor Vehicles Act of 1988
• Its cylinder capacity is no more than 3,000ccThe following types of vehicle are banned:
• Banned Vehicles

• Cars with an engine capacity of between 1,000cc and 2,500cc
• Motorcycles with an engine capacity of between 50cc and 500cc
• Scooters with an engine capacity of between 250cc and 800ccForeign nationals and non-resident Indians (NRIs) moving to India on a “transfer of residence” for permanent settlement are allowed to import one car or motorcycle (new or used) under the following conditions:
• Transfer of Residence

• The vehicle owner has resided abroad for at least two years and will stay in India for at least one year
• The total stay on previous short trips to India has not exceeded six months during the two years before immigration
• The vehicle owner has not imported another vehicle using “transfer of residence” in the preceding three years
• Only one member of a family can import a vehicle using “transfer of residence”
• A vehicle must be imported within six months of arrival in India and meet the conditions set by the government
• The imported vehicle cannot be sold in India for two years
• New or used cars (of any age) with an engine capacity of up to 1,600cc can be imported. Cars with an engine capacity of more than 1,600cc must be owned and registered abroad for at least a year
• New or used motorcycles (of any age) with an engine capacity of between 75cc and 500cc can be imported
• Required Documents Authorised car dealers will ask the buyer to provide official proof of residence, proof of identity, and five passport-sized photographs. The following documents are acceptable forms of proof:
• Independent dealers will not usually ask buyers for official documents, especially if the purchase is made using cash.

• Passport
• Driver’s licence
• Ration card (issued by state governments)
• Utility bill (gas, water or electricity)
• House registration papers (for home owners)
• Rent receipt or rental lease
• Employer’s certificate (issued by an employer)
• PAN card (10-digit number used for filing taxes)Foreign vehicles imported into India are subject to customs duties that cost more than the retail price at the time of purchase. On average, expect to pay about 102 percent duty on a new vehicle or 160 percent on a used vehicle. These rates include:
• Customs Duties

• Basic customs duty (35 percent)
• Special excise duty (24 percent)
• Additional duty (16 percent)
• Surcharge on customs duty (10 percent)
• Special additional duty of customs (4 percent)
• Motor vehicle cess (0.125 percent)Period of use For every quarter during first year For every quarter during second year For every quarter during third year For every quarter during fourth year There is a maximum depreciation of 70 percent permitted on used foreign vehicles. All imported vehicles must be tested for compliance to the government requirements outlined in the Exim Policy (2001), Central Motor Vehicles Act (1988) and Central Motor Vehicle Rules (1989).
• Vehicles can be tested at the following locations:
• Vehicle Testing
• 2%
• 2.5%
• 3%
• 4%
• Depreciation allowed
• Used vehicles are charged custom duties according to their depreciated price at the time of importation. In other words, duty has to be paid on a certain percentage of the vehicle’s original retail price, based on its age. The rules on depreciation are as follows:

• Ministry of Defence’s Vehicle Research and Development Establishment in Ahmednagar, Maharashtra
• Automotive Research Association of India in Pune, Maharashtra
• Central Farm and Machinery Training and Testing Institute in Budni, Madhya Pradesh Registering Foreign Vehicles The government’s Central Motor Vehicles Act (1988) decrees that an owner must apply for a vehicle to be registered before it can be driven in a public place. All permanently registered vehicles must have a visible registration mark (licence plate) displayed. Temporary registration is issued for seven days to allow a new vehicle to be transported to the owner’s residence. There are minor variations between states on the required forms and documents needed to apply for a temporary registration for an imported vehicle. However, the following are required by the RTO/RTA in all states:
• Temporary Registration
• After going through customs, non-commercial vehicles must be registered at the local branch of the state government’s Regional Transport Authority/Office (RTA/RTO). Vehicles must initially be temporarily registered, so that they can be transported from the port of entry to the either a testing site or the owner’s residence. Within seven days of delivery, the vehicle owner must apply for permanent registration.
• Vehicle testing can be waived on the importation of luxury cars with a value of at least Rs20 lakhs (Rs2 million).

• Application form (can be downloaded from the RTO/RTA website)
• Copy of a valid car insurance certificate
• Copy of the pollution under control certificate, which is issued after a vehicle has been tested
• Proof of address
• Copy of the roadworthiness certificate, which is issued by the vehicle’s manufacturer
• Copy of the customs clearance certificate
• Registration fee (varies by state)
• Road tax (varies by state) Permanent Registration
• There are minor variations between states on the required forms and documents needed to apply for a permanent registration for an imported vehicle. However, the following are required by the RTO/RTA in all states:
• Further information on the regulations and the forms required for temporary registration can be found on each state government’s RTO/RTA website.

• Application form (can be downloaded from the RTO/RTA website)
• Copy of a valid car insurance certificate
• Copy of the pollution under control certificate, which is issued after a vehicle has been tested
• Proof of address
• Copy of the roadworthiness certificate, which is issued by the vehicle’s manufacturer
• Copy of the customs clearance certificate
• Road tax (rate varies by state) – not applicable if bought during the temporary registration process
• Registration fee (varies by state)Further information on the regulations and the forms required for permanent registration can be found on each state government’s RTO/RTA website.
• further queries visit http://www.cbec.gov.in
• The RTO/RTA will issue the vehicle registration number and mark after the application and fees have been submitted. Vehicle owners have the option of purchasing special vehicle registration numbers, which cost between Rs1,000 and Rs50,000.