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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%:
| 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 101.656%
which includes the following:
| Basic Customs Duty |
35% |
| Special Customs Duty |
10% |
| Additional Duty |
40% (16% Cenvat + 24% Special Excise
Duty*) |
| M.V. Cess |
0.125% |
| Special Additional Duty of Customs |
4% |
(*Special Excise Duty exempted in the
case of cars capable of being used by physically handicapped
persons)
Import Policy
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.
Import of automobile is not permitted
except against a license or in accordance with a Public Notice
issued in this behalf.
Import of Passenger cars and automobile
vehicles may be made without a license 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:
A. INDIAN NATIONALS OR FOREIGN NATIONALS
OF INDIAN ORIGIN COMING TO INDIA FOR PERMANENT SETTLEMENT
(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 oe 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 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.
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 the 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) Incase the Importer wants to dispose
of the vehicle, it will 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 in accordance
with the condition mentioned in (c) above, provided there
is a minimum period of five years between the two successive
imports.
D. BRANCHES/OFFICES OF FOREIGN FIRMS,
COMPANIES AND INSTITUTIONS (CORPORATE OR OTHERWISE) ESTABLISHED
IN INDIA.
(a) Branches/Offices of foreign firms,
companies and institutions (corporate or otherwise) established
inn India may import upto three vehicles.
(b) Incase the Importer wants to dispose
of the vehicles, it will be subject to the condition of re-export
of the vehicle or sale 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 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 payment of the Customs duty in foreign exchange are made
by the foreign company holding equity in Indian company
(c) Incase the Indian company wants to
dispose of the vehicle, it will be subject to 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 the 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 minimum period of five years between two successive imports
of a vehicle.
F. ACCREDITED JOURNALISTS / CORRESPONDENTS
OF FOREIGN NEWS AGENCIES
(a) The Importer should have the Accrediton
Certificate from the Press Information Bureau, Minstry of
Information 7 Broadcasting, Government of India.
(b) Import of one vehicle is permitted.
(c) Incase the Importer wants to dispose
of the vehicle, it will be subject to 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 the 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 minimum period of five years between two successive imports.
G. INDIAN FIRMS EXECUTING CONTRACTS ABROAD
(a) Import of Vehicle may be made after
successful completion of the project/winding up of the foreign
office,subject to production of a letter of approval from
the Reserve Bank of India showing the permission of Reserve
Bank of India for the purchase of vehicles abroad for the
execution of the contract.
(b) The vehicle should have been in use
of the firm/company abroad for at least 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 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 the 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 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
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 of Civil Surgeon
or Head of the Concerned wing in the 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.
(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 congenial but having one upper limbs normal.
(b) If the car is a gift, confirmatory
letter from donor, In original, which should also indicate
donor' relationship with the donee.
(c) Satisfactory evidence clearly justifying
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 or subject to special
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 licencing
authority with whom 'No Sale Bond' is executed.
(g) The Customs Duty may be paid in Indian
Rupees.
3. HONORARY CONSULS OF FOREIGN GOVERNMENT
(a) Import of one passenger car is permitted
on 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 second hand 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 vehicle into the country,
it should be registered in the name of the Importer. The Importer
except those covered by the category '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 licencing 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 Custom Duty in Indian Rupees. In their cases 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 custom 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 Director General of Foreign Trade.
Yours faithfully,
Impex Solution
Bharat Parekh
Partner
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