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Import of Car
Impex Solution
404,Navjivan Bldg, 121/127 Kazi Syed St,Masjid (W), Mumbai - 400 003,India.
Tel : 2345 38 38 & 2346 38 38 Fax : 91 22 2345 3737 M : 9820034262
Web : impexsolution.com
Email : impexsolution@vsnl.net
impexsolution@yahoo.com
 
Passenger cars/jeeps/multi-utility vehicles, etc. which are in the restricted category may be imported without a licence on payment of full Customs duty by the following categories of importers :
 
ELLIGIBILITY
A Individuals coming to India for permanent settlement after two years of continuous stay abroad
B Resident Indians presented with a car as an award in any international event / match / competition
C Legal heirs / successors of deceased relatives residing abroad
D Physically handicapped persons
E Companies incorporated in India having foreign equity participation
F Branches / offices of foreign firms
G Charitable / missionary institutions registered with the Ministry of Welfare and the Ministry of Home Affairs, Government of India
H Honorary Consuls of foreign countries on the recommendations of the Ministry of External Affairs, Government of India
I Journalists / Correspondents of foreign news agencies having accredition certificate with the Press Information Bureau, Ministry of Information and Broadcasting, Government of India
 
ENTITLEMENT
A All the above categories shall be entitled to import only one vehicle except categories (e) and (f) , 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 under Special circumstances.
 
BOND/BANK GURANTEE
A All bonds/bank guarantee executed by importers of cars/two wheelers, etc. prior to 31.03.97, where the vehicles has not been transferred, shall be deemed to have been discharged with the issue of this Public Notice
 
VALUATION AND DUTY RATES

The value of the car is determined in the following manner:

(i) Manufacturer's invoice value is accepted wherever such invoice is available.

(ii) When no such invoice is available, value is determined on the basis of the world car catalogues available with the department or on the basis of manufacturer's price list, where ever available. Normal trade Discounts are allowed to be deducted where ever the value is taken on the basis of World car catalogues.

(iii) Value of Second hand car is arrived at in the above manner after allowing the deductions for depreciation as per the schedule below, subject to maximum of 70%:

Period of Use Depreciation Allowed (%)
For every quarter during 1st year 4
For every quarter during 2nd year 3
For every quarter during 3rd year 2.5
For every quarter during 4th year and thereafter 2

The present rate of duty on Import of Car is as below:

Total effective duty works out to 101.656% which includes the following:

Basic Customs Duty 35%
Special Customs Duty 10%
Additional Duty 40% (16% Cenvat + 24% Special Excise Duty*)
M.V. Cess 0.125%
Special Additional Duty of Customs 4%

(*Special Excise Duty exempted in the case of cars capable of being used by physically handicapped persons)

Import Policy

A. Persons Coming to India for Permanent Settlement.

B. Foreign Nationals married to Indian Nationals.

C. Foreign Nationals working in India.

D. Foreign Firms, Companies and Institutions Established in India.

E. Companies incorporated in India having Foreign Equity.

F. Journalists/Correspondents of Foreign News Agencies.

G. Indian Firms Executing Contracts Abroad.

H. Charitable And Missionary Institutions.

I. Physically Handicapped Persons.

J. Honorary Consuls of Foreign Government.

Import of automobile is not permitted except against a license or in accordance with a Public Notice issued in this behalf.

Import of Passenger cars and automobile vehicles may be made without a license by the categories of eligible importers specified in the Public Notice subject to the following conditions:

(i) The payment for the vehicle is made abroad.

(ii) The payment of the Customs duty is made in foreign exchange, unless exempted in the case of any particular category of importer.

(iii) The conditions specified against each category of eligible importers in the Public Notice are fulfilled.

(iv) The importers returning to India on permanent settlement, a declaration to that effect is given to the Customs at the time of the clearance of the Car.

The categories of eligible Importers specified in the Public Notice are as follows:

A. INDIAN NATIONALS OR FOREIGN NATIONALS OF INDIAN ORIGIN COMING TO INDIA FOR PERMANENT SETTLEMENT

(a) Import of One Passenger Car with engine size not exceeding four cylinders and not exceeding 1600 C.C is permitted, whether the car is new or old. Alternatively, import of any oe passenger car is permitted provided the car has been in the use of the importer for more than a year prior to the return to India.

(b) The Importer has stayed abroad continuously for a period of at least two years prior to his coming India for permanent settlement.

(c) The payment for the car is made abroad before his return to India.

(d) The car should be imported into India within six months of the arrival of the Importer in India for Permanent settlement.

(e) If the Importer transfers his residence out of India again, he will be entitled to import another car under this policy only after a minimum period of five years.

B. FOREIGN NATIONALS (INCLUDING PERSONS OF INDIAN ORIGIN) MARRIED TO INDIAN NATIONALS.

(a) Import of one passenger car is permitted, whether the car is new or old.

(b) The Importer, namely the foreign national including the person of Indian origin, is coming to India for Permanent settlement.

(c) The Car has been gifted to the Importer by the parents within one year of the marriage.

(d) The Importer is free to sell the car in the open market after his or her return to India without any restriction as regards the period of retention of the vehicle.

C. FOREIGN NATIONALS WORKING IN INDIA

(a) The contract period for the employment, assignment or stay of the Importer in India shall not be less than one year.

(b) Import of one vehicle is permitted.

(c) Incase the Importer wants to dispose of the vehicle, it will subject to the condition of re-export of the vehicle or sale to the State Trading Corporation of India or to an eligible Importer covered by any of the categories C, D, E and F mentioned in this Public Notice.

(d) Subsequent Import of a vehicle may be made after the disposal of the previous vehicle in accordance with the condition mentioned in (c) above, provided there is a minimum period of five years between the two successive imports.

D. BRANCHES/OFFICES OF FOREIGN FIRMS, COMPANIES AND INSTITUTIONS (CORPORATE OR OTHERWISE) ESTABLISHED IN INDIA.

(a) Branches/Offices of foreign firms, companies and institutions (corporate or otherwise) established inn India may import upto three vehicles.

(b) Incase the Importer wants to dispose of the vehicles, it will be subject to the condition of re-export of the vehicle or sale to State Trading Corporation of India or to an eligible importer covered by any one of the categories C,D,E and F mentioned in Public Notice.

E COMPANIES INCORPORATED IN INDIA HAVING FOREIGN EQUITY PARTICIPATION AMOUNTING TO NOT LESS THAN US $ 2 Lakhs.

(a) The Indian Company may import upto three vehicles.

(b) The payment for the vehicle as well as payment of the Customs duty in foreign exchange are made by the foreign company holding equity in Indian company

(c) Incase the Indian company wants to dispose of the vehicle, it will be subject to condition of re-export of the vehicle or sale to the State Trading Corporation of India or to an eligible imports covered by any one of the categories C, D, E and F mentioned in the Public Notice.

(d) Subsequent import of a vehicle may be made after the disposal of the previous vehicle in accordance with the condition mentioned in (c) above, provided there is minimum period of five years between two successive imports of a vehicle.

F. ACCREDITED JOURNALISTS / CORRESPONDENTS OF FOREIGN NEWS AGENCIES

(a) The Importer should have the Accrediton Certificate from the Press Information Bureau, Minstry of Information 7 Broadcasting, Government of India.

(b) Import of one vehicle is permitted.

(c) Incase the Importer wants to dispose of the vehicle, it will be subject to condition of re-export of the vehicle or sale to the State Trading Corporation of India or to an eligible imports covered by any one of the categories C, D, E and F mentioned in the Public Notice.

(d) Subsequent import of a vehicle may be made after the disposal of the previous vehicle in accordance with the condition mentioned in (c) above, provided there is minimum period of five years between two successive imports.

G. INDIAN FIRMS EXECUTING CONTRACTS ABROAD

(a) Import of Vehicle may be made after successful completion of the project/winding up of the foreign office,subject to production of a letter of approval from the Reserve Bank of India showing the permission of Reserve Bank of India for the purchase of vehicles abroad for the execution of the contract.

(b) The vehicle should have been in use of the firm/company abroad for at least one year.

(c) The vehicle shall not be sold, transferred or disposed off in any manner by the importer for a period of five years from the date of importation of vehicle into India. If the Importer wants to dispose off the vehicle within this period, he shall be free to sell it to the State Trading Corporation of India or to an eligible importer covered by any one of the categories C, D, E and F mentioned in the Public Notice.

H. CHARITABLE AND MISSIONARY INSTITUTIONS

(a) Import of vehicle such as utility vans, ambulances, station wagons, jeeps, passenger cars is permitted as gift, subject to the condition that the importer is an established institution and is functioning for the common benefit of the community and subject to the production of necessary clearance under the Foreign Contribution (Regulation) Act, 1970.

(b) Payment of Customs Duty may be made in Indian Rupees.

(c) The vehicle shall not be sold, transferred or disposed off in any manner by the importer for a period of five years from the date of importation of the vehicle into India. If the Importer wants to dispose off the vehicle he shall be free to sell it to State Trading Corporation Of India or to an eligible importer covered by any one of the categories C, D, E and F mentioned in this Public Notice.

I. PHYSICALLY HANDICAPPED PERSONS

(a) Import of cars specially designed for the physically handicapped may be permitted on the basis of certificate in the proforma as prescribed in annexure-I appended to this Public Notice, from the State of Civil Surgeon or Head of the Concerned wing in the Hospital, certifying that the importer has any of the following disabilities and the percentage of impairment is not less than 50% of the total body as per Mebride Scale:

(i) Unilateral/Bilateral amputees of the lower limbs excluding below knee unilateral.

(iii) Traumatic/permanent paralysis which cannot be surgically or medically treated.

(iv) Permanent paralysis of one upper limbs or lower limbs due to any reason or hemipares.

(v) Grossly deformed limbs due to trauma arthritis or congenial but having one upper limbs normal.

(b) If the car is a gift, confirmatory letter from donor, In original, which should also indicate donor' relationship with the donee.

(c) Satisfactory evidence clearly justifying need and essentiality for import of a self-driven car by the applicant.

(d) Import of only one car upto 1600 CC engine capacity will be allowed.

(e) Car shall not be allowed to be sold or otherwise disposed off or possession parted with, or pledged, mortgaged or hypothecated at any time. However in special circumstances, and for valid reasons or subject to special conditions as may be laid down, the Director General of Foreign Trade, New Delhi, may on request, relax this condition.

(f) The Importer shall produce his driving licence within 6 months from the date of import, to the licencing authority with whom 'No Sale Bond' is executed.

(g) The Customs Duty may be paid in Indian Rupees.

3. HONORARY CONSULS OF FOREIGN GOVERNMENT

(a) Import of one passenger car is permitted on recommendation of the Ministry of External Affairs, provided the cost of the car, Including freight and insurance, is borne by the foreign government and the Customs duty is paid by the applicant in Indian Rupees at the time of Import.

(b) Import of second hand car will be permitted after a period of five years from the date of importation of the first car subject to the condition of re-export of the previous vehicles or its sale to the State Trading Corporation of India or an eligible importer covered by any one of the categories C, D, E and F mentioned in this Public Notice.

On import of vehicle into the country, it should be registered in the name of the Importer. The Importer except those covered by the category 'A' and 'B' shall execute a bond in the prescribed form, for an amount equal to customs assessed CIF value of the vehicle in favour of the President of India at the regional licencing office concerned of the Director General of Foreign Trade, undertaking to fulfil the conditions applicable to import. The bond shall be valid for a period of five years and it may not be supported by a bank guarantee.

If the Importers are employees of the Central Government, State Governments or Public Sector Undertakings posted in Indian embassies/High Commissions abroad or in Foreign offices of Public Sector Undertakings they may make the payment of the Custom Duty in Indian Rupees. In their cases the sale of the vehicle will not be permitted for a period of two years from the date of Importation. However, if they make the payment of custom duty in convertible foreign exchange, there will be no restriction on the sale of the imported vehicle.

The provisions of the Public Notice may be relaxed on merits by Director General of Foreign Trade.

Yours faithfully,
Impex Solution


Bharat Parekh
Partner