Import foreign cars to India? Well these are the things you need to know!

Want to Import foreign cars?

All Indians are obsessed with automobiles, talk about them nonstop, and strive to buy the best vehicles available, no matter where they are made. If you fit this description, you might have come across or read about a car that captured your heart right away.

Import Foreign cars

A vehicle for which you would be willing to spend anything just to experience driving it, but which is not offered in India. You’re now considering your options. You might ship in the vehicle to India and claim ownership of it. India has a protracted import procedure that might be very expensive. However, if this is something that interests you and you don’t mind the expense, then the ship in procedure will be worth it.

Import foreign cars

You must first locate an importer who can bring the car into India on your behalf if you want to purchase an shipped in vehicle there.

  1. According to rule 126 of the Central Motor Vehicle Rules (CMVR), 1989, anyone who buy in or offers to bring a new car into India must have a current compliance certificate issued by one of the testing agencies for the vehicle model being shipped in.
  2. In addition, the distributor would be accountable for all provisions allocated to the manufacturer under CMVR, 1989 Rules 122 & 138, and issuing Form 22 under CMVR, 1989 provisions.
  3. In addition, the distributor must guarantee in writing that they will produce the proof of production conformance as described by CMVR rule 126A within six months of the importation. If this is not done, future shipping in of new automobiles of that model will not be permitted.
Rules for Importing Brand New Car to India :-

These are the following rules for shipping in new cars to India:-

  • The car has to be shipped in from the country in which it was built or assembled.
  • The car must be created and manufactured outside of India.
  • Make sure the car is right-hand drive, that it is brand new, and that it has never been rented, used, or leased before.
  • The data should be shown in kilometer per hour on your car’s speedometer.
  • Legal entry points for shipped in vehicles are Mumbai, Kolkata, and Chennai naval dockyard.
  • Your car’s headlights must be positioned to illuminate the left-hand half of the road properly.
 Rules for Importing Used Car to India :-
  • You can only ship in used vehicles that are under three years old. Verify the manufacturing date of any shipped in items before purchasing.
  • Ensure the car is right-hand driven.
  • The car must not have been previously hired, leased, or sold to a third party.
  •  Legal entry points for imported vehicles are Mumbai, Kolkata, and Chennai naval docks.
  • Vehicle’s headlights are positioned to adequately illuminate the left half of the road.

Documents Needed to Purchase Foreign Automobiles in India

  • Bank drafts are also used.
  • Documents pertaining to the car’s insurance coverage.
  • A letter of credit or a purchase agreement for the automobile.
  • Customs declares the value of the car on a GATT form.
  • Importation permit.
  • The loading bill is a legal document that attests to the shipping of the car once it has been received.
  • The Duty Exemption Entitlement Certificate, a Duty Entitlement Pass Book, and other paperwork are additional requirements.

Payment of Custom Duty for Imported Vehicles

  • You will have to pay custom duty on new cars, which can be anywhere from 60% to 100% of the price. The duty might go to 125% for secondhand autos.
  • Vehicles costing $4,000 or more will incur a 100% custom duty levy. However, you will only be required to pay a 60% custom duty fee if your vehicle is priced under $4,000.
  • If you include the insurance, the cost of the car, and the CIF value, the overall costs for a four-wheeler vehicle may total 165%. Similar to this, the overall cost for two-wheelers may increase by 116%. You will also be responsible for the registration fee.

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