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Insurance Article

Things You Need to Know While Importing a Car in India

February 08 2019
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From the basic process to pro tips, here’s everything you need to know about importing a car in India

Are you a car enthusiast who spend hours admiring the masterpieces with wheels from around the world? Have you been pining for a specific car, luxury or vintage, that is not available in India? We feel your pain; it’s quite the disappointment when the thing you most desire is not available in your country.

Don’t worry! You can always purchase a car and import it to India and drive your dream car in your own country. Here are some of things about importing a car in India you must know as per the provisions laid down by the Directorate General of Foreign Trade (DGFT):

When Can You Import a Car?

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

  • If the car is not manufactured by Indian companies.
  • 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 the process of importing a car in India is permitted only through certain custom ports. They are as follows:

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

Things to note when importing a car via dealer

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

  • Get the Road Worthiness Certificate issued by any testing agency of the country from where you’re importing the car. This is to ensure that your importation certificate is compliant with the rule 126 under Central Motor Vehicle Rules, 1989.
  • While importing the car, you must submit a written proof that serves as a confirmation that 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.

Import Duties on Cars

This can be one of your main concerns while importing a car in India. 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 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 comprehensive motor insurance policy will provide the financial security to your car against any loss or damage it may suffer during any unforeseen circumstances.

Related Article:

New Cars To Watch Out For In 2019
Things You Need to Have in Your Car

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