India Import Regulation for Japan Used Cars

India Import Regulation for Japan Used Cars

Japan Used Automobile Import Duty / Regulation in India

 

Year Restrictions
Max. 3 Years Old
Destination Port
Mumbai
Time of Shipment
RoRo (19-24 Days)
Vessel Schedule
RoRo (Monthly)
Shipping Line
---
Inspection
JAAI

 

Inspection

The government’s Motor Vehicles Act (1988) decrees that all new and used cars must have a certificate of fitness in order to be registered. The certificate is awarded after a car has undergone certain tests for “roadworthiness” – the extent to which a vehicle meets the standard requirements for safe driving on open roads.

 

In India the Export Import Policy (EXIM) 2001, allows import of used cars as well as pre owned in India. The import rules state that the import of passenger cars, jeep, multi-utility vehicles, motorcycles etc. are restricted items to import and can be imported only after obtaining an import license.

  1. Imports of new cars would be allowed only through Mumbai port (Nhava Sheva), Kolkata and Chennai.
  2. Used vehicles being imported should not be more than three years old and conform to the Central Motor Vehicle Rules, (1989). Imported automobiles should have a minimum residual life of five years and the importer should ensure supply of auto parts and service during this period.
  3. The government has decided to allow the entry of second hand vehicles into the country only through the Mumbai port. The commerce ministry has identified six categories of second hand vehicles having cylinder capacity of up to 3000 cc, which will now be allowed to be brought in through the Mumbai port.
  4. Import of left hand vehicles banned. The vehicles should necessarily have right-hand steering controls, a speedometer indicating the speed in kilometres and a photometry of the head-lamps to suit keep-left traffic.
  5. The importing agency is expected, at the time of importation, to submit a certificate issued by a testing agency notified by the central government that the second hand vehicle being imported has been tested successfully before shipment and confirms all the regulations of used vehicles specified in Motor Vehicles Act, 1988.
  6. The importer is also required to submit a certificate issue by a testing agency notified by government that the used vehicle being imported conforms to the original homologation certificate issued at the time of manufacture.
  7. The policy fully bans the import of cars whose engine capacity ranges from 1000 to 2500cc. motorcycle engine capacity should be their engine capacity should be over 250 cc but not in excess of 800 cc.
    In brief, if the vehicle that has to be imported is new then it must conform to the provisions of the Motor Vehicles Act, 1988 and the rules made there under, as applicable, on the date of import. The present custom duty is 100% +surcharge +CVD etc make the total duty at 180% of FOB value. The import duty is charged on the basis of list price prevailing. However, trade discount and depreciation on the value are deducted from the price list but freight from the country of manufacture and insurance charges are added. The landing charges are further added to arrive at the final assessable value.

Depreciation allowed is as under

Every quarter 1st year of use 4 Percent Every quarter IInd year of use 3 Percent Every quarter IIIrd year of use 2 1/2 Percent Every quarter IVth year and thereafter 2 Percent.

 

Customs Duty

Basic Custom Duty 40 Percent Special Custom duty 5 Percent Additional duty 40 Percent M.V. Cess 0.125 Percent Special Additional duty of Customs 4 Percent.

 

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