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Importing a Car in India: Key Things

When importing a car in India, there are several regulations you need to observe that are laid down by the Directorate General of Foreign Trade (DGFT) and here are the most important ones.

  • 02 Aug 2019
  • 5 min read
  • 5106 views

Importing a car into India can be an exciting prospect, especially for automobile enthusiasts looking for specific models not available in the domestic market. However, the process involves several regulations, documentation, and costs that must be carefully understood before making a decision. In this blog, we’ll highlight the key things you need to know to ensure a smooth and compliant car import experience in India.

When can you import a car?

You are allowed to import a car in India only under the following circumstances:

  • If Indian companies do not manufacture the car.
  • If the car is not registered in any other country, under any of their laws.
  • If the car is not leased or loaned at the time of importing.

The type of car you can import

It’s important to know that importing a car in India is permitted only through certain customs ports. They are as follows:

  • Mumbai
  • Nhava Sheva
  • Delhi Air Cargo
  • Chennai
  • Kolkata
  • Cochin
  • Tughlakabad

Who can import vehicles to India?

The following groups are allowed to import vehicles under government rules:

  • NRIS: As an NRI wishing to come back to India permanently, you can bring in a car under some terms and conditions.
  • Foreign embassies and diplomats: Embassies and diplomats don’t have to pay import duty on cars if they get the required clearances.
  • Charitable and religious organisations: These organisations can import foreign donated vehicles if they have obtained pertinent documents and licences.
  • Legal heirs: If your overseas relative is no longer alive and left a vehicle behind, the legal heir of the deceased person in India may import the vehicle.
  • Automobile producers: India's vehicle producers or vehicle developers can import cars for development, testing or homologation.
  • Government institutions: Government institutions or research and development institutions can import official vehicles or vehicles for scientific purposes under special schemes.

Things to note when importing a car via a dealer

You can always seek the help of a dealer to import your new ride to India, which will make the process easier and quicker. However, to do the same, you need to follow certain guidelines as listed below:

  • Get the Road Worthiness Certificate issued by any testing agency in the country. This ensures that your importation certificate complies with Rule 126 under the Central Motor Vehicle Rules, 1989.

  • While importing the car, you must submit written proof that confirms the compliance certificate, as required under Rule 126 of the Central Motor Vehicle Rules, 1989, will be submitted within six months of the importation process.

Procedure and documents required

Once you’ve confirmed that you’re eligible to import a car, the second half is doing so using the right procedure and with the right documents:

  • Import licence: If the vehicle is not freely importable, obtain an import licence from the Directorate General of Foreign Trade (DGFT).
  • Bill of lading: A carrier-confirmed freight document containing minimal shipment information and serving as proof of car ownership.
  • Clearance customs: Car clearance under inspection at the proper customs port and payment of commensurate import duties.
  • Vehicle invoice and purchase documents: Used as proof of car value, purchase details and customs valuation.
  • Roadworthiness certificate: To ensure the vehicle's safety, obtain this certificate from a certified import agency in the country of import.
  • Compliance certificate (Rule 126 CMVR): Before registering the vehicle, you must submit a signed statement that you’ll get a compliance certificate from an Indian test lab (as per Rule 126).
  • Insurance cover: You must purchase car insurance before you can drive your imported car in India. It ensures you are financially protected against accidents, theft or damage.
  • Registration in India: Once the customs clearance formalities and conformity testing are done, the car must be registered in the Regional Transport Office (RTO). Your new registration number certificate will be provided to you.

Import duties on cars

This can be one of your main concerns while importing a car in India. The following are the applicable import duty rates for importing a car in India:

Criteria / Applicability

Import Duty in %

Used Car

125

Cars CBUS whose CIF value is more than $ 40,000 or Petrol Engine > 3000 CC or Diesel engine > 2500 CC

100

Cars CBUS whose CIF value is less than $ 40,000 and Petrol Engine < 3000 CC and Diesel engine < 2500 CC

60

Exceptions

The rules and procedure for the import process, as explained abovee will differ in a few of the cases stated below:

  • If you are an NRI
  • If the car belonged to a deceased individual residing abroad
  • If you’ve won the vehicle as an award or gift in any event or competition
  • If you are a differently abled person
  • In case the car is awarded to a charitable or religious institution

Frequently Asked Questions

  • Is a second-hand car importable to India?

However, second-hand cars are subject to higher import duties and must meet Indian safety and emission norms.

  • Can I import a left-hand drive vehicle?

India only permits right-hand-drive vehicles in general. Left-hand-drive vehicles are not permitted except when imported for specific purposes, such as research work or exhibition.

  • Is there a maximum age limit for the vehicles that I can import?

Yes, used imported vehicles should be under three years old and conform to Indian road standards and safety norms.

Conclusion

One can import a vehicle to India, provided an individual is eligible and does the right thing in line with the law. One should be cautious from the time they receive the correct documents to the customs and RTO regulations. Finally, don't forget to ensure your vehicle has a proper comprehensive car insurance policy to protect against damage. So, your beloved vehicle will be safe, insured and roadworthy right when it reaches the country.


Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

The rules and procedure for the import process as explained above will differ in a few of the cases stated below:

  • If you are an NRI
  • If the car belonged to a deceased individual residing abroad
  • If you’ve won the vehicle as an award or gift in any event or competition
  • If you are a differently abled person
  • In case the car is awarded to a charitable or religious institution

Things to Note

You need to meet certain terms and conditions in order to import your car to India from any other country. While most of them are listed above, here are some more points you need to keep in mind before proceeding further.

  • Make sure that the car meets all the provisions of The Motor Vehicle Act of 1988.
  • Make sure the vehicle does not fall under the category of banned vehicles in India.
  • While buying and importing a car, make sure that you’ve considered factors like availability of service network and high-octane fuel in the country
  • A third-party insurance plan is mandatory to drive a vehicle in India

Now, you know everything about importing a car in India, you can go ahead with the process without any fuss. Since you’re going to spend such a considerable amount of money and time into securing the car you desire, make sure you do everything in your power to protect it. A car insurance will provide the financial security to your car against any loss or damage it may suffer during any unforeseen circumstances.

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