Tuesday 7 October 2014

Exim Policy of India for Imported Vehicles

The Indian government is quite strict when it comes to importing vehicles which is why we have the Exim policy of India that puts heavy custom duty on automobiles. In addition to this, the policy also mentions that the vehicle should not be manufactured or even assembled in the country. The vehicle should not be sold, loaned or leased before being imported to the country.  
The vehicle should be registered for use in any country before it is imported to India. The Exim policy has different conditions for new and used cars. For instance, as far as new vehicles are concerned, they should be imported to India only from the country where they have been manufactured. The vehicles should also follow the Central Motor Vehicle Rules (CMVR), 1989.

So let’s check out the different conditions that the Indian government has laid down for both brand new and used cars.

Used Cars: Quite interestingly, the Indian government allows the entry of pre-owned vehicles only through the Mumbai port. Six categories of pre-used cars that have a cylinder capacity of up to 3000 cc can enter the country through the Mumbai customs port.

The Exim policy explicitly defines a used car. Any car that has been sold, loaned or leased before being imported to the country and is registered for use in any country after following the laws of the country before its importation into India is a pre-owned vehicle.

In addition to the definition, the Exim policy mentions what or what not is a used car subjected to. For instance, a pre-owned vehicle should not be older than three years from its date of production. It should have a right hand steering wheel and controls. This condition also applies on automobiles apart from two or three wheelers.

Exim Policy of India for Imported Vehicles.jpg

To meet the Indian road traffic, the vehicles should also have a speedometer that has a speed indicator of km/h and a photometry of headlamps that suits the Indian ‘keep left’ traffic.

Apart from this, the automobiles should follow the Motor Vehicle Act, 1988 which states that the import of used vehicles is allowed only via Mumbai customs port. Not only this, a used vehicle should at least minimum worth on road for a period of 5 years after being imported to India.

New Vehicles: The Exim policy clearly puts forth the definition of a new vehicle as an automobile that hasn’t been manufactured or assembled in India and has not been sold, leased or loaned before being imported to India. It should also not have been registered for use in any country according the laws of the country before being imported to India.

The terms and conditions that a new vehicle is subjected to are more or less the same as that of a used vehicle. The vehicle should have speedometer indicating the speed in km/h. It should have a right hand steering wheel and controls and photometry of the headlamps required to tackle India’s ‘keep left’ traffic. The automobile should be imported from the country of its manufacture.

The new automobile should follow the rules and regulations laid down by Central Motors Vehicles Act, 1988 and it can enter India only via the customs port in Mumbai, Chennai and Calcutta.

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