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Old 13th October 2009, 23:27   #16
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you can claim from 2006 ya dud what car is it and since texas rhd
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Old 14th October 2009, 02:10   #17
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you can claim from 2006 ya dud what car is it and since texas rhd
Its a Jeep Wrangler (right hand drive)
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Old 14th October 2009, 12:54   #18
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Idnani firstly you are ok if the car is a RHD and speedo reads in KMs and not MPH. The other thing that comes in is that the car is within the 3yr period as you say but when (date of manufacture) was it produced?. As in if it were a 12th Dec 2006 car it would hold its three year period upto 12th Dec 2009, after which it would go to a 4 yr old car and it would attract a penalty along with the normal duty structure. This is how i would presume it is looked at and even if not you have two months before the car turns 4yrs old. In both cases it would attract the Penalty.
The other rule is that the car in order not to go through the Homologation formalities with ARAI it has to be above $40,000 USD, anything under would have to go through the process and this can take anything from a month to 6 months. The Wrangler comes under the required price amount.
The duty the car would attract is 160% and the depreciation could be claimed on the invoice value. This hardly happens as the amount saved goes in miscellenous expenditures to clear the car.

Last edited by speedy : 14th October 2009 at 12:58.
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Old 14th October 2009, 13:48   #19
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Thanks Speedy, that is all useful info. One question though, are you sure that a car more than 3 years olf would attract a penalty? I was under the impression that on TR with the current rules, the car can be as old as possible, and even a 4 or 5 year old car would be ok. I was advised to have it AS old as possible as I can claim more depreciation on it. Also, if the original invoice price was more than $40k, then it would be ARAI exempt?
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Old 14th October 2009, 14:44   #20
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Quote:
Originally Posted by idnani View Post
Thanks Speedy, that is all useful info. One question though, are you sure that a car more than 3 years olf would attract a penalty? I was under the impression that on TR with the current rules, the car can be as old as possible, and even a 4 or 5 year old car would be ok. I was advised to have it AS old as possible as I can claim more depreciation on it. Also, if the original invoice price was more than $40k, then it would be ARAI exempt?
The first thing Idnani, TR has been abolished. Which means i can go to U.K. buy a car and bring it down myself. I do not need to wait for a time frame or to have lived in the country. A new or secondhand car has to be above the $40,000 price range in order to avoid homologation. The second hand car has to be not more than 3 years old.
You can get a 20yr old car but that attracts penalty as well. The penalty is considered on the Invoice of the car and the duty payable. For example 2 lakh car cost, duty would be say 40 thousand and penalty on it would be 20 thousand, total cost to you not counting the underhand and other expenses would be 2.60 lakhs. I have had friends who have paid penalties for their cars.
That would help, but this would also mean that the duty would be calculated on this invoice amount. You cannot use one invoice for duties and another to avoid homologation. Arai will ask for the Customs receipt to varify the exemption.
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Old 14th October 2009, 15:09   #21
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In KSA, there were plenty of cars, American car were also very cheap. All of them LHD, but the cost is much cheaper than India. I wish to bring my
Caprice Cheverolet 1986, but because of the customs problems had to drop it. Lot of American cars in good worthy road conditions can cost around equal to Rs. 1 Lakh.

Brand New Ford V8 8-Cyl car cost with base price starting SR.90000/=
Rs.11 Lakhs. New Camry also cost SR.80000/= starting base models.

Saudi market is full of American cars, because of cheaper cost of petrol.
I don't know what is rules if anybody returing to India from KSA going on TR finally, they can bring their own car without customs duty, we need to find out.
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Old 14th October 2009, 15:11   #22
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Speedy when did TR has get abolished? Cars are still being brought through TR, may be less due to DRI action but legit ones still allowed. A TR car must be 3 years or less, and if more than 3 yrs there is a penality which is arbitrary and calls for adjustment and bribe. Even with all this I can tell you with confidence she will cost you 220% + percent of her depriciated value on the road (registered and ready to drive) I would not go through all this hassle for a wrangler. A few new cars have been imported in the south still no real takers in the 2nd market.
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Old 14th October 2009, 16:03   #23
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T/R stands for Transfer of Residence and is a wider term than just import of Car under T/R. How can it get abolished? People get a lot of things under T/R which get beneficial duty rate.
So T/R still exists under the Baggage Rules of Customs Act 1962.
There is no quota set for T/R. There are 14 listed items that have beneficial duty rates under T/R rules.


Import of Car under T/R

1) Homologation condition is exempted for import under T/R .
2) Original poster. How was your car registered in your name for last 1 year if it was a RHD and you are in the USA? Since this is hard to digest, you will end up with like other imports that are stuck in the Indian Customs.
The car has to be registered in your name for last 1 year . There is no mention of age of car in the baggage rules. The only mention is of road worthiness of 5 years post import into India and service support locally, but this condition is exempted for T/R imports.

To sum it up, if you owned a car in UK/Japan/Australia/NZ/South Africa, your car can be imported, else it is not possible. Even a RHD from UAE is not allowed, even if you say that you were using it for off-roading and didn't require registration.

If anyone wants a copy of Car import conditions, pm me with your email ID and I will forward the same.

P.S. I own a Custom House agency and am a qualified custom house agent. Ours is a 68 year old firm and we have being dealing with T/R and Unaccompanied Baggage for the last 40 years.
I have researched the information provided above.

If anyone promises you, that they can import for you , please do so at your own risk.
If you have strong political connections with , both the ruling and opposition party, then only go ahead and buy an Import, else if you are an ordinary person like me, be happy with what is available here.

Last edited by riteshritesh : 14th October 2009 at 16:07.
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Old 14th October 2009, 16:34   #24
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Copying Import conditions as below.

Import Licensing notes:

(1) (I) A second hand or used vehicle(including all the vehicles other than Railway or Tramway) for the purposes of this Chapter shall mean a vehicle that :-
  1. (a) has been sold, leased or loaned prior to importation into India; or

    (b) has been registered for use in any country according to the laws of that country, prior to importation into India;
(II). The import of second had or used vehicles shall be subject to the following conditions:-
  1. (a) The second hand or used vehicle shall not be older than three years from the date of manufacture;

    (b) The second hand or used vehicle shall :
    1. (i) have right hand steering, and controls (applicable on vehicles other than two and three wheelers);

      (ii) have a speedometer indicating the speed in Kilometres; and

      (iii) have photometry of the headlamps to suit �keep left� traffic.
    (c) In addition to the conditions specified in (a) and (b) above, the second hand or used vehicle shall conform to the provisions of the Motor Vehicle Act, 1988 and the rules made thereunder.

    (d) Whoever being an importer or dealer in motor vehicles who imports or offers to import a second hand or used vehicle into India shall,
    1. (i) at the time of importation, submit a certificate issued by a testing agency, which the Central Government may notify in this regard, that the second hand or used vehicle being imported into India has been tested immediately before shipment for export to India and the said vehicle conforms to all the regulations specified in the Motor Vehicles Act, 1988 of India and the rules made thereunder.

      (ii) At the time of importation, submit a certificate issued by a testing agency, which the Central Government may notify in this regard, that the second hand or used vehicle being imported into India has been tested immediately before shipment for export to India and the said vehicle conforms to the original homologation certificate issued at the time of manufacture.

      (iii) On arrival at the Indian port but before clearance for home consumption, submit the vehicle for testing by the Vehicle Research and Development Establishment, Ahmednagar of the Ministry of Defence of the Government of India or Automotive research Association of India, Pune or Central Farm Machinery Training and Testing Institute, Budni, Madhya Pradesh for tractors, and such other agencies as may be specified by the Central Government, for granting a certificate by that agency as to the compliance of the provisions of the Motor Vehicles Act, 1988 and any rules made thereunder.

      (iv) Import of these vehicles shall be allowed only through the customs port at Mumbai.
    (e) The second hand or used vehicles imported into India should have a minimum roadworthiness for a period of 5 years from the date of importation into India with assurance for providing service facilities within the country during the five year period. For this purpose, the importer shall, at the time of importation, submit a declaration indicating the period of roadworthiness in respect of every individual vehicle being imported, supported by a certificate issued by any of the testing agencies, which the Central Government may notify in this regard.�
(2) (I) A new imported vehicle(including all the vehicles other than Railway or Tramway) for the purposes of this Chapter shall mean a vehicle that :-
  1. (a) has not been manufactured/assembled in India; and

    (b) has not been sold, leased or loaned prior to importation into India; or

    (c) has not been registered for use in any country according to the laws of that country, prior to importation into India.
(II) The import of new vehicles shall be subject to the following conditions:
  1. a. The new vehicle shall-
    1. (i) have a speedometer indicating the speed in Kilometres per hour;

      (ii) have right hand steering, and controls (applicable on vehicles other than two and three wheelers);

      (iii) have photometry of the headlamps to suit �keep-left� traffic; and

      (iv) be imported from the country of manufacture.
    b. In addition to the conditions specified in (a) above, the new vehicle shall conform to the provisions of the Motor Vehicles Act, 1988 and the rules made thereunder, as applicable, on the date of import.

    c. Whoever being an importer or dealer in motor vehicles who imports or offers to import a new vehicle into India shall,
    1. (i) at the time of importation, have valid certificate of compliance as per the provisions of rule 126 of Central Motor Vehicle Rules(CMVR), 1989, for the vehicle model being imported, issued by any of the testing agencies, specified in the said rule;

      (ii) be responsible for all the provisions assigned to the manufacturer as per Rules 122 & 138 of CMVR, 1989 and for issuing Form 22, as per provisions of CMVR, 1989; and

      (iii) give an undertaking in writing that the proof of compliance to conformity of production as per rule 126A of CMVR shall be submitted within six months of the imports. In case of failure to do so, no further import of new vehicle of that model shall be allowed thereafter.
    d. The import of new vehicles shall be permitted through the Customs Port at Nhava Sheva, Kolkata, Chennai, ICD- Tughlakabad and Delhi Air Cargo, Mumbai Port.


    e. The provisions of this notification will not apply to the imports of new vehicles-
    1. (i) for the purpose of certification as per para c (i ) above;

      (ii) for the purpose of defence requirements; and for the purpose of R&D by vehicle manufacturers.
3. (I) The conditions at sl. Nos. 1 & 2 above shall not be applicable on import of passenger cars/jeeps/multi utility vehicles etc. on payment of full Customs duty by the following categories of importers:
  1. (a) Individuals coming to India for permanent settlement after two years continuous stay abroad provided the car has been in the possession of the individual for a period of minimum one year abroad.


    (b) Resident Indians presented with a car as an award in any international event/match/competition;

    (c) Legal heirs/successors of deceased relatives residing abroad;

    (d) Physically handicapped persons;

    (e) Companies incorporated in India having foreign equity participation;

    (f) Branches/offices of foreign firms;

    (g) Charitable/Missionary/Religious institutions registered as per the law relating to the registration of the societies or trusts or otherwise approved by the Central or State Government, subject to the condition that the importer is an established institution and is functioning for the common benefit of the community, and subject further to production of necessary clearance under the Foreign Contribution (Regulation) Act, 1976.

    (h) Honorary Consuls of foreign countries on the recommendations of the Ministry of External Affairs, Government of India.

    (i) Journalists/Correspondents of foreign news agencies having accredition certificate with the Press Information Bureau, Ministry of Information and Broadcasting, Govt. of India.
However, these imports shall be subject to the condition that, the vehicle should have right hand steering and controls(applicable on vehicles other than two and three wheelers).

(II) All the above categories shall be entitled to import only one vehicle except categories (e) and (f), which shall be entitled to import maximum of three vehicles. Persons in category (d) shall be entitled to import only specially designed vehicles suitable for use by handicapped. All such imports shall carry a �NO SALE� condition of two years which shall be endorsed by the Customs authorities on the passport/ registration documents at the time of import and by the Regional Transport Authorities when such vehicles are presented for registration in India. [Deleted - All such imports, except by the physically handicapped persons, shall not involve any foreign exchange remittance from India directly or indirectly. ] The DGFT may, however, permit relaxation of these conditions or imports by any other category not listed above in special circumstances.

(III) All bonds/ bank guarantees executed by importers of cars/two wheelers etc. prior to 31.03.97, where the vehicle has not been transferred, shall be deemed to have been discharged with effect from 31.03.2000(from the date of issuance of public notice no. 3(RE-2000)/97-02.


(4) The import of vehicles (as classified under this chapter ) by Foreign Diplomats and Other Privileged Persons in this category, who are exempt from payment of customs duty, shall be exempt from the conditions specified at sl. No. 1 & 2 above. However, such imported vehicles cannot be sold in India except to another diplomat or privileged person and are compulsorily required to be re-exported.

(5) The import of vehicles namely, Digital Satellite News Gathering Vans (DSNG van) / Outdoor Broadcasting Vans (OB Van), as classified in this Chapter, fitted with equipments for telecasting shall be exempted from the conditions specified at Sl. No. 1 & 2 above. However, these imports shall be subject to the condition that the vehicle should have right hand steering and controls (applicable on vehicles other than two and three wheelers).



(6) The import of vehicles namely, ATVs (All Terrain Vehicles) which are specifically designed for off-the-road sports, recreation and some farm usage and do not require registration under provisions of the CMVR, shall be exempted from the conditions mentioned at sl.no. 1 and 2 above.



(7) Import of new vehicles having an FOB value of US $ 40,000 or more by :

(a) individuals, (b) companies and firms importing under the EPCG Scheme

will be exempt from the conditions at Sl. No. (2)(II)(c) above. However, at the time of Customs clearance, a Type Approval Certificate / COP of an international accredited agency from the country of origin, including a notarized English translation thereof, shall be furnished. This Type Approval shall stipulate that the vehicle to be imported complies with all the ECE Regulations for the complete vehicle. The international accredited agencies referred to above will be notified separately.


Last edited by riteshritesh : 14th October 2009 at 16:45.
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Old 15th October 2009, 10:21   #25
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Originally Posted by canonball View Post
Speedy when did TR has get abolished? Cars are still being brought through TR, may be less due to DRI action but legit ones still allowed. A TR car must be 3 years or less, and if more than 3 yrs there is a penality which is arbitrary and calls for adjustment and bribe. Even with all this I can tell you with confidence she will cost you 220% + percent of her depriciated value on the road (registered and ready to drive) I would not go through all this hassle for a wrangler. A few new cars have been imported in the south still no real takers in the 2nd market.

What i mean by abolish is before there were two sets of duties applicable for T.R. cars and normal cars. Now the Duty is the same weather it is brought under the legit TR route or just a purchase.
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Old 16th October 2009, 03:32   #26
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I've actually seen an LHD car imported under TR in the last 5 years.
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Old 16th October 2009, 10:05   #27
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Quote:
Originally Posted by v1p3r View Post
I've actually seen an LHD car imported under TR in the last 5 years.
I have seen three cars imported in LHD all for a business house. I am sure alot of influence and fines was used and given.
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Old 16th October 2009, 22:26   #28
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Nope, this was an individual.
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Old 18th October 2009, 10:48   #29
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Ritesh, I personally know of a Hummer H2 that was imported from the US based on TR and it was Right Hand Drive so are you certain that TR's from the US and other countries were banned?
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Old 29th August 2013, 15:13   #30
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Default Re: Importing a used car on transfer of residence

Quote:
Originally Posted by riteshritesh View Post
T/R stands for Transfer of Residence and is a wider term than just import of Car under T/R. How can it get abolished? People get a lot of things under T/R which get beneficial duty rate.
So T/R still exists under the Baggage Rules of Customs Act 1962.
There is no quota set for T/R. There are 14 listed items that have beneficial duty rates under T/R rules.


Import of Car under T/R

1) Homologation condition is exempted for import under T/R .
2) Original poster. How was your car registered in your name for last 1 year if it was a RHD and you are in the USA? Since this is hard to digest, you will end up with like other imports that are stuck in the Indian Customs.
The car has to be registered in your name for last 1 year . There is no mention of age of car in the baggage rules. The only mention is of road worthiness of 5 years post import into India and service support locally, but this condition is exempted for T/R imports.

To sum it up, if you owned a car in UK/Japan/Australia/NZ/South Africa, your car can be imported, else it is not possible. Even a RHD from UAE is not allowed, even if you say that you were using it for off-roading and didn't require registration.

If anyone wants a copy of Car import conditions, pm me with your email ID and I will forward the same.

P.S. I own a Custom House agency and am a qualified custom house agent. Ours is a 68 year old firm and we have being dealing with T/R and Unaccompanied Baggage for the last 40 years.
I have researched the information provided above.

If anyone promises you, that they can import for you , please do so at your own risk.
If you have strong political connections with , both the ruling and opposition party, then only go ahead and buy an Import, else if you are an ordinary person like me, be happy with what is available here.
Hi Ritesh,
I understand you know the business of customs pretty well. I have a question which is a little different: My partner and I are planning to drive from Italy to India, in a car that she owns there, and subsequently, keep the car here. Just wondering if this is possible at all? In normal cases, what is usually required is a carnate, but in this case since we plan to keep the car here, do you think its possible?
Yea and to add to everything - I have read LHD are not allowed in India? So what do you make of it?
Many thanks
R
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