Read about What do you need to know while importing foreign vehicles to India? For more information, check out the car insurance policy from Kotak General Insurance.
You might have seen luxury cars on TV that are not manufactured or available in India. You might wonder how the elites get their hands on these premium cars. Although a slightly complicated and expensive process, it is possible to import cars from other countries.
Premium models of cars like Rolls Royce, Bugatti, Lamborghini, and Mercedes are often imported by celebrities and the rich class. Importing cars may be a time-consuming and expensive process, but it is certainly possible & worthwhile for many.
Here are a few things you must know if you are thinking to import cars to India.
1. Imported cars need to be assembled or manufactured outside of India.
2. The imported car must be manufactured in the same country from where it is being imported.
3. The car must have bright headlights suitable for illuminating the left side of the road.
4. The car must have the steering wheel on its right side for Indian driving.
5. The car must have a speedometer that displays the distance in kilometers and not in miles.
1. You must ensure that the car is not more than three years old.
2. The car must have a Roadworthiness certificate with at least five years of validity.
If you want to import cars, whether used or new, it is important to note that cars can only be imported through naval docks situated in Chennai, Mumbai, and Kolkata.
Also, one must keep in mind that certain vehicles are prohibited by Indian law from being imported. These include
1. Scooters with 250cc to 800cc capacity engines.
2. Heavy-duty, two-wheelers or bikes with 50cc to 500cc capacity engines.
3. Cars with 1,000cc to 2,500cc capacity engines.
You will need to have the necessary documents if you want to import cars or any other vehicle to India. These include:
• Bank Draft
• Bill of Lading
• DEEC (Duty Exemption Entitlement Certificate) or DEPB (Duty Entitlement Passbook), or ECGC (Export Credit Guarantee Corporation of India)
• GATT Declaration
• Import License
• Invoice of the vehicle
• Purchase Order/ Letter of Credit
• Test report
• Two-wheeler insurance in case importing two-wheelers
If you are thinking of importing a vehicle to India, make sure you are aware of the following:
1. You will need to pay import duty, which considerably increases the cost of the vehicle.
• For bikes, approximately 116% of the bike’s cost, freight (CIF) value, and insurance. • For cars, approximately 165% of the car’s cost, freight (CIF) value, and insurance must be paid as import duty.
2. You need to pay the extra cost at the RTO for the registration of the vehicle.
3. Do not be hasty, as importing any vehicle to India will be a time-consuming process.
Importing cars or bikes is not a new trend, but there are new trends in the rules & regulations applicable to the process. So, make sure you consider all the above things mentioned and import the vehicles from foreign countries while complying with the set protocols.