The Process of Customs and Registration for Imported Vehicles in India
In India, it is common for business tycoons or celebrities from the sports or film industry to import fascinating cars from foreign countries. The government has laid down strict rules to comply with while importing such vehicles. India charges a hefty amount as custom duties if you import vehicles from foreign, even more than the vehicle’s retail price. After clearing customs, registration for Imported Vehicles is also compulsory at the state government’s RTA/RTO (Regional Transport Authority/Office).
The process of clearing customs and Registration for Imported Vehicles is a complex procedure and involves collecting the relevant documents and interacting with authorities in customs and RTO/RTA. The process requires the professional skills of a qualified Company Secretary who is well-versed with all the legal procedures. They can act as the middleman between the Customs and RTA and the client and guide him/her through the entire process.
Customs Duty Rates on Imported Vehicles
Let us first look at the customs duty to be paid on imported vehicles in detail.
Usually, the customs duty on a new vehicle is 102 percent on a used vehicle, and you are required to pay 160 percent of the retail price.
The following are the different rates:
- Basic custom duty – 35%
- Special Excise duty – 24%
- Additional duty – 16%
- Special additional duty of customs – 4%
- Motor vehicle cess – 0.125%
- Surcharge on customs duty – 10%
For importing used vehicles, the customs duty is charged as per the depreciated price i.e. it depends on how long the vehicle has been used before the time of importation. You can add a maximum of 70% depreciation price to custom duty.
Let us look into more detail at the process of registering foreign vehicles
The Stages in the Registration Process for Imported Vehicles
As per the Central Motor Vehicles Act (1988), an owner can drive their vehicle in a public place only after applying for registration. The rules imply that first, the vehicle should be temporarily registered to transport it from the port of entry to the owner’s residence or testing facility.
Temporary registration lasts for seven days to allow for the vehicle to reach the owner’s residence. The documents and forms for such registration vary from state to state.
Generally, these are the requirements from the RTO/RTA for temporary registration:
- The application form available on the RTO/RTA official website.
- A duplicate of the car insurance certificate.
- The duplicate of the Pollution Under Control received after vehicle testing.
- A copy of the roadworthiness certificate provided by the car manufacturer.
- An address proof.
- The Registration fee (as per the state requirements).
- Road tax (depending on the state).
- A duplicate of the Customs Clearance Certificate.
The owner must apply for Permanent registration after the end of the seven days of temporary registration.
The following are the basic requirements for permanent registration by the RTO/RTA:
- The application form (from the official website).
- Customs Clearance Certificate (duplicate).
- Car Insurance Certificate (copy).
- The car manufacturer’s roadworthiness certificate (duplicate).
- Address proof.
- Registration fee.
- Road tax.
- The PUC (Pollution Under Control) Certificate (copy).
The owner will get the vehicle registration number after submitting the application and paying the fees. They can even get a special registration number by paying the necessary fees, ranging between Rs. 1,000 to Rs. 50,000.
Importing a foreign vehicle in India is a complex procedure, and the owner has to mandatorily observe the essential guidelines. The team of 3E Accounting is adept in secretarial services and has, over the years, helped several clients import foreign vehicles to India smoothly. We have a lot of experience in India Customs Registration procedures and will provide the essential Corporate Secretarial Services to help you with all the legal processes. Contact us today!