IMPORT OF CAR
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% :
Depreciation
percentage
| 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 111.38% which includes the following.
Breakup
of Customs duty on car import
| BASIC CUSTOMS DUTY | 40% |
| SPECIAL CUSTOMS DUTY | 5% |
| ADDITIONAL DUTY | 40% |
| M.V.CESS | 0.125% |
| SPECIAL ADDITIONAL DUTY OF CUSTOMS | 4% |
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.
General Conditions regarding import of Car
Import of automobile is not permitted except against a licence or in accordance with a Public Notice issued in this behalf.
Import of Passenger cars and automobile vehicles may be made without a licence 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:-
APERMANENT SETTLEMENT: . INDIAN NATIONALS OR FOREIGN NATIONALS OF INDIAN ORIGIN COMING TO INDIA FOR
(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 one 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 to 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 from the date of importation of the previous vehicle.
(f) The importer is free to sell the car in the open market after his return to India without any restriction as regards the period of retention of the vehicle.
(g) Import of any other type of automobile vehicle may be permitted by the Director General of Foreign Trade on merits.
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 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) In case the importer wants to dispose of the vehicle, it will be 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 accordance with the condition mentioned in (c) above, provided there is a minimum period of five years between two successive imports.
D. BRANCHES/OFFICES OF FOREIGN FIRMS, COMPANIES AND INSTITUTIONS (CORPORATE OR OTHERWISE) ESTABLISHED IN INDIA.
(a) Branches/Offices foreign firms, companies and institutions (corporate or otherwise) established in India may import up to three vehicles.
(b) In case the importer
wants to dispose of the vehicles, it will be 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 one of the categories C, D, E
and F mentioned in this 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 the payment of the Customs duty in foreign exchange are made by the foreign company holding equity in the Indian company.
(c) In case the Indian company wants to dispose of the vehicle, it will be subject to the 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 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 two successive imports of a vehicle.
AGENCIES :
(a) The importer should have the Accreditation Certificate from the Press information Bureau, Ministry of Information 7 Broadcasting, Government of India.
(b) Import of one vehicle is permitted.
(c) In case the importer wants to dispose off the vehicle it will be 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 one of the category 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 two successive imports.
G. INDIAN FIRMS EXECUTING CONTRACTS ABROAD:
(a) Import of vehicle may be made after substantial completion of the project/winding up of the foreign office, subject to the production of a letter of approval from the Reserve Bank of India showing the permission of the Reserve Bank of India for the purchase of the vehicles abroad for the execution of the contract.
(b) The vehicle should have been in the use of the firm/company abroad for atleast 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 the 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 this 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 further 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 within this period
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 Civil Surgeon or Head of the concerned wing in the Government 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.
ii) Unilateral below elbow or above elbow ambuacee.
(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 congenital but having atleast one upper limbs normal.
(b) If the car is a gift, confirmatory letter from donor, in original, which should also indicate the donor's relationship with the donee.
(c) Satisfactory evidence clearly justifying the 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, and subject to such 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 licensing authority with whom 'No Sale Bond' is executed.
(g) The Customs duty may
be paid in Indian Rupees.
J. HONORARY CONSULS OF FOREIGN GOVERNMENT :
(a) Import of one passenger car is permitted on the 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 a second 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 the vehicle into the country, it should be registered in the name of the importer. The importer, except those covered by categories '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 licensing 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 Customs duty in Indian Rupees. In their case, 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 Customs 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 the Director General of Foreign Trade.