Importing Cars into India by NRIs

As a Non-Resident Indian (NRI), you may be considering importing a car from your home country into India. This can be a tricky process, but with the right guidance, it can be done successfully. In this blog post, we’ll discuss all the steps that NRIs need to take when importing cars into India, including legal regulations, taxes and duties, insurance requirements, and more. Whether you’re wanting to bring in a new or used car, this guide will provide you with the information you need to navigate the process of importing a car into India as an NRI.

Various Options for Importing Cars

If you are an NRI and looking to import a car into India, there are various options available to you. You can either ship your car from abroad or buy a car in India and then get it registered.

• Shipping Your Car from Abroad – If you want to ship your car from abroad, you will need to take care of the following things:
• Apply for an Import Permit – You will need to apply for an import permit from the Directorate General of Foreign Trade (DGFT). The process is fairly simple and can be done online.
• Get the Car Insured – Make sure you get your car insured before shipping it. This will protect your investment in case of any damage during transit.
• Get the Shipping Quote – Get in touch with a reliable shipping company and get a quote for shipping your car from abroad.
• Pay the Customs Duty – Once your car reaches India, you will need to pay the customs duty, which is currently at 100%.
• Buying a Car in India – If you want to buy a car in India, you can either buy it from a dealer or directly from the owner. Buying from a dealer gives you the benefit of warranty and service support, but buying directly from the owner can help you save some money. In either case, make sure you get the car thoroughly inspected before making the purchase.

People Who Can Import Commercial Vehicles

There are several categories of people who can import commercial vehicles into India:

• NRIs (Non-Resident Indians) who have been living abroad for at least one year and have a valid Indian passport.
• PIOs (Persons of Indian Origin) who have a valid passport from any country other than India.
• OCIs (Overseas Citizenship of India) holders who have a valid foreign passport.
• Foreign nationals who are employed with an Indian company on a long-term basis and have been posted to India on assignment

NRIs, PIOs, and OCIs can import commercial vehicles into India for their personal use. The vehicle must be less than three years old at the time of importation and should not have been previously registered in India. Foreign nationals employed with an Indian company can import commercial vehicles into India for business purposes. The vehicle must be less than three years old at the time of importation and should not have been previously registered in India.

Rules to Import a Used Car – Non-Commercial

Assuming that you are an NRI importing a used car for personal use only, here are the rules you need to follow:

1. The car must be less than 3 years old.
2. It should have a valid registration in the country of export.
3. You will need to get an import permit from the Directorate General of Foreign Trade (DGFT).
4. The car should be shipped to India through a registered shipping company.
5. Once the car arrives in India, you will need to clear it from customs and get a temporary registration certificate from the Regional Transport Office (RTO).
6.  Finally, you will need to get the car insured before you can drive it on Indian roads.

Rules to Import a New Car – Non-Commercial

It is not easy to import a car into India. There are several rules and regulations that need to be followed. Here are the steps that need to be taken:

1. The car should be less than three years old.
2. The car should have a valid registration certificate from the country of origin.
3. The car should have a valid insurance policy.
4. The car should pass the pollution control test conducted by the concerned authorities in India.
5. The car should have all the required documents, such as invoice, bill of lading, etc. before it is shipped to India.
6. The shipping company should be registered with the Directorate General of Shipping, India (DGSH).
7. The shipping company should provide all the necessary documents, such as the bill of lading, customs clearance certificate, etc., to the importer in India.
8. The importer should clear all the dues, such as customs duty, excise duty, etc., before taking delivery of the car in India.

Using Transfer of Residence

If you’re an NRI living in India, you may want to import a car from your home country. Here’s what you need to know about using the transfer of residence (ToR) scheme to import a car into India:

• The ToR scheme allows NRIs to bring personal belongings, including vehicles, into India without paying duty.
• To be eligible for the ToR scheme, you must have owned the vehicle for at least one year and it must be for your personal use.
• You’ll need to submit various documents, including a bill of sale, registration certificate, and insurance policy, when applying for the ToR scheme.
• Once your application is approved, you’ll have to pay customs duty on the value of the vehicle. However, this duty is lower than the standard rate if you’re importing a new car.
• There are certain restrictions on imported vehicles under the ToR scheme, such as engine size and age limit. So make sure to check these before importing your car.

As an NRI, there are a few things you need to be aware of before importing a car into India. The process is not as simple as it may seem and there are a few potential pitfalls that you need to be aware of. However, if you follow the steps outlined in this article, you should be able to import your car into India without any problems.