• Have you ever envisioned bringing a stylish foreign car to the lively streets of India? The encouraging news is that it’s truly achievable.

• Nonetheless, it’s not merely a matter of driving the vehicle off a vessel. There are regulations and procedures you must follow, along with a set of criteria to satisfy and fees to pay. Furthermore, the owner must adhere to legal obligations for motor vehicles in India, including possessing vehicle insurance that covers at least third-party liabilities. *
• If you have an enthusiasm for foreign cars and wish to drive them on Indian roads, then continue reading to learn more about the involved process.

Conditions for Importing a Foreign Car

First, let’s examine the requirements established for both new and used foreign cars to be imported into India.

Conditions for Importing Used Foreign Cars

1. The year of manufacture of the imported used vehicle must not be more than three years old.
2. The vehicle must be right-hand drive, with headlight and speedometer specifications similar to those of new cars.
3. As with new vehicles, imports are only allowed through specified naval docks.
4. The car should have been loaned, leased, registered, or sold.
5. The vehicle must be roadworthy and certified as such for a minimum of five years.

• If you are importing a permitted two-wheeler, ensure to comply with all legal requirements and insure it with the appropriate car insurance policy.

Who Can Import Vehicles to India

Individuals and NRIs – Indian residents and Non-Resident Indians (NRIs) are eligible to import vehicles under certain conditions.

Foreign Diplomats and Embassies – Diplomats and foreign embassies have the privilege to import vehicles under diplomatic immunity.

Automobile Manufacturers – Companies engaged in manufacturing or assembly in India may import vehicles for testing or research purposes.

Government and Research Organizations – Vehicles brought in for governmental or research reasons may be allowed under unique provisions.

Tourists and Temporary Visitors – Foreign nationals may temporarily bring vehicles in under the Carnet de Passage scheme.

Companies and Corporates – Businesses are permitted to import vehicles for commercial use, provided they meet legal guidelines.

Conditions for Importing a Car While Shifting to India

• Foreign nationals or Non-Resident Indians (NRIs) are permitted to import one vehicle while relocating permanently to India. The criteria for such imports are outlined as follows:

1. The individual should not have resided in India for at least two years prior to the transfer.
2. A commitment to reside in India for a minimum of one year following the transfer is required.
3. The individual must not have utilized the ‘transfer of residence’ procedure for three years before the current transfer.
4. Only one family member may carry out this procedure by completing the Transfer of Residence Form.
5. The vehicle must be imported within six months following the relocation to India.
6. The sale of the imported vehicle is forbidden for at least two years after the transfer.
7. If the engine capacity of the vehicle ranges from 75cc to 500cc, then no stipulations regarding being new or used will apply.
8. If the engine size exceeds 1,600cc, the registration process must be finished at least one year prior to the planned import.

Procedure and Documentation for Import

Vehicles can be imported either directly from the manufacturer or via an agent. The following documents will be necessary:

• Invoice documents
• automobile insurance document
• GATT Declaration
• Bank draft
• Bill of Lading or Sea Waybill
• Import license
• Purchase order or letter of credit, if relevant

Other necessary and applicable documents.

• If you engage an agent, they can assist you throughout the process, until your vehicle is registered in the country.

Things To Consider Before Importing A Car Into India

Before starting the import procedure, keep the following considerations in mind:

1. The import duty on automobiles differs according to the CIF (Cost, Insurance, and Freight) value, with a 100% customs tax for amounts exceeding USD 40,000. For pre-owned vehicles, the import tax rate is 125%.
2. The vehicle must be registered at the nearest RTO in India. Fees for registration and road tax are not included in the import duty.
3. Eligibility for the import of commercial vehicles is limited to specific individuals and institutions.
4. After the car is imported, it must be presented to an accredited testing center to verify its adherence to current motor vehicle regulations.

Conclusion

Importing a foreign vehicle to India entails stringent regulations, including those related to manufacturing origin, right-hand drive conformity, and specific import ports. Used cars must be no older than three years, and certain engine capacities are limited. NRIs and foreign citizens may import one vehicle under specified conditions. The procedure demands extensive documentation and significant import duties, reaching up to 125% for used vehicles. Furthermore, registration and compliance testing are required. To protect your imported vehicle, obtaining comprehensive insurance is vital.

FAQs

1. Where must a vehicle be submitted following import?

After import, the vehicle must be presented at the nearest customs port for clearance. It will be subjected to inspection, duty assessment, and verification as per the Central Motor Vehicles Rules. Once cleared, the owner is required to register it with the Regional Transport Office (RTO).

2. Is it possible to import left-hand drive vehicles to India?

Left-hand drive vehicles can be brought into India, but they need to be converted to right-hand drive before registration. They also must meet Indian safety and emission regulations as stipulated under the Motor Vehicles Act.

3. What does the homologation of vehicles entail?

Homologation refers to the process of certifying that a vehicle adheres to the necessary safety and environmental standards in a specific country. In India, imported vehicles must be homologated by the Automotive Research Association of India (ARAI) or other authorized bodies.

4. What is the cost to import a car to India?

The expense of importing a car to India can range from 100% to 165% of the vehicle’s value, which includes customs duty, GST, registration costs, and homologation fees. Expenses vary based on the car’s engine size, age, and CIF (Cost, Insurance, and Freight) value.