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Old 18th September 2010, 02:48   #16
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Originally Posted by GTO View Post
The ARAI has a giant ego. No other country recognizes their "road worthiness" certificates (understandably though), and thus, in turn the ARAI doesn't accept certification from any foreign nation. Even if that country has far more stringent testing procedures or requirements.

Your only way to bypass the ARAI certification is to import a car costing over US $40,000. Homologation is required for vehicles costing under 40K.

Search within the forum, import documentation is well covered.

Hardly any independent workshop / mechanic works on an hourly basis in India. Your best bet is to hire the services of a well-equipped garage run by someone who's a car guy. This person should be a task master, technically proficient and have an interest in such projects. You'll easily find some down South; that's where all the automotive / tuning talent is. We'll discuss specifics when you finally decide to bring your car down.
Again thanks for your reply. I can see how its really difficult. So the hurdle is the 40k price tag. Which is ok, but the problem will be that this price is of parts alone and not the built car, so would that count for skipping homologation?

I will search and see what I find on the registration of a car in india.

The only reason I am doing my research up front is because I do not want to get stuck with a kit that I have no way of driving other than on track or private roads.

I have 90% made up my mind on this kit, the rest 10%, is trying to figure out all the hurdles from before hand. I would love to discuss the specifics of this with you if you get a chance.I am heading down to delhi for good first week of nov. I would love to settle down a little and then quickly start getting things together for this build.
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Old 18th September 2010, 07:52   #17
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Note from Mod : You have way too many spelling / grammatical errors in your posts. This greatly reduces the community experience for other forum users. You are hereby instructed to proof-read your posts prior to submission. We also highly recommend spell-checking software.

Last edited by GTO : 19th September 2010 at 21:53. Reason: font tags emoved
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Old 19th September 2010, 22:02   #18
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Which is ok, but the problem will be that this price is of parts alone and not the built car, so would that count for skipping homologation?
I don't think so. The ARAI certification is to ensure road worthiness and I guess, the way that a car is assembled contributes greatly to its road worthiness.

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The only reason I am doing my research up front is because I do not want to get stuck with a kit that I have no way of driving other than on track or private roads.
There is only one way around, which I have outlined on the previous page. I don't recommend it at all. Not only is it illegal, but with the recent superbike mess, also highly risky. Your car can & most probably will get impounded. Unless you are a politician, of course.

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I would love to discuss the specifics of this with you if you get a chance.I am heading down to delhi for good first week of nov. I would love to settle down a little and then quickly start getting things together for this build.
Sure thing. You might also want to consider buying some ready-to-use (already assembled) kit car from the UK, and then importing it. As long as the cost is over 40K, no problem. Gautam Singhania (a man with excellent taste in cars) drives an Ariel Atom.

Here's some information on imports that might be useful to you. Though it should be accurate for the most part, it has been a while since I'd compiled it. Watch out for small errors:

Quote:
The basics:

• The car has to be a right-hand-drive. Left-hand drive automobiles are prohibited from entering the country (except for consulates and some other special categories).
• The Indian Government has entirely banned individuals importing cars whose engine capacity ranges from 1000 - 2500 cc.
• New Cars can be imported via the customs port at Mumbai, Calcutta and Chennai.
• Used cars can be imported from the Mumbai port only. Also, the used car cannot be older than three years (from the date of manufacture). The Exim policy of 2001 lifted quantitative restrictions on importing used cars.

On customs duty:

• The ex-factory price is used for calculating customs duty.
• The customs duty is a standard 102.16% on new cars
• The customs duty is pegged at 159.87% on used cars.
• To view the depreciation table of used cars, click here : Linky.
• Completed knocked down cars attract a customs duty of anywhere between 38 to 48%.
• Under the EPCG scheme, hotels / hospitality establishments are subject to minimal duty / taxes. However, they are subject to certain foreign exchange requirements.
• If you import from Europe, you will get a refund of the VAT (value added tax).

On transfer of residence:

• The most popular way of importing a car to India is via the “Transfer of residence” clause, where any Indian (settled abroad) who is relocating to India can get his car along. He should have owned the car for atleast 12 months in the foreign country. Upon import, the car cannot be sold for 2 years (from the date of import).
• The NRI importing the car should have lived overseas for atleast a 2 year duration.
• The payment for the car should have been made abroad.
• The car must be imported within 6 months of the NRIs arrival into India.
• Under this scheme, the customs duty must be paid in foreign exchange. If a handicapped person is importing the car, then the customs duty may be paid in Indian rupees. Official permission is required before selling the car in India.

On who can import

• Any individual can import a car whose value is more than USD 40000. There are no restrictions on the imports of these cars. So as most of the exotics are above that value, they can be imported freely and not necessarily on T.R.
• Foreign nationals (including persons of Indian origin) married to Indian nationals. The methodology adopted by Customs authorities in assessing duty on a motor vehicle is based on the ex-factory price on the date of original purchase. Adjustments are made for:

1) Foreign nationals working in India.
2) Branch/Offices of foreign firms, Companies and institutions established in India.
3) Companies incorporated in India having foreign/NRI equity
4) Accredited Journalists/Correspondents of foreign news agencies.
5) Indian firms executing contracts abroad.
6) Charitable and Missionary Institutions.
7) Physically handicapped persons.
8) Honorary Consuls of Foreign Governments.

On paperwork and documentation required:

• Cars costing more than $40,000 do NOT have to undergo homologation from the ARAI. If the cars value is less than $40,000, the vehicle has to be submitted for testing to the VRDE (Vehicle Research and Development Establishment), Ahmednagar, of the Ministry of Defence or the ARAI (Automotive Research Association of India), Pune or the Central Farm and Machinery Training and Testing Institute, Madhya Pradesh or any other notified testing agency by the Government.
• 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 immediately before shipment and that the vehicle conforms to all the regulations specified in the Motor Vehicles Act, 1988.
• The second hand or used vehicle 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.

Miscellany:

• What’s listed above is what the rules say. Please don’t state that you saw a LHD (or something similar) since these rules are broken consistently. Bribing is rampant and some of the rules you read above may have been bypassed (unfortunately).
• Beware of dealer rackets. There have been several well-documented cases of an imported car dealer manipulating the import documentation. In case the long arms of law catch up, it is the owner (and not the dealer) who is liable to pay duties, taxes and fines.
• The rebadging racket is rampant in order to qualify for lower custom duties. For e.g. a BMW M5 may be rebadged to a BMW 525 and thus show a lower invoice price.
• It’s best to hire the services of a competent and reputable clearing agent who is well familiar with the process of importing a car. This can save you a lot of running around and headaches.
• Since the customs duty on spare parts or completely knocked down kits is significantly lower, it is not uncommon for an importer to strip a car (of seats, headlights, tyres etc) and document it as a CKD.

Official websites:

http://www.dgftmumbai.nic.in/
Mumbai Customs
http://www.indian-embassy.dk/Pages/i...20of%20car.htm

Last edited by GTO : 19th September 2010 at 22:09.
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Old 21st September 2010, 00:00   #19
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I have a question about the method used to calculate depreciation for used vehicle imports. If a used vehicle more than three years is not permittted to be imported by the "rule", how come they have a table to calculate 4th year depreciation and further depreciation beyond that?
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Old 24th October 2010, 18:24   #20
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Default GTO: Clarification over CKD Duty

On customs duty:

The ex-factory price is used for calculating customs duty.
The customs duty is a standard 102.16% on new cars
The customs duty is pegged at 159.87% on used cars.
To view the depreciation table of used cars, click here : Linky.
Completed knocked down cars attract a customs duty of anywhere between 38 to 48%.
Under the EPCG scheme, hotels / hospitality establishments are subject to minimal duty / taxes. However, they are subject to certain foreign exchange requirements.
If you import from Europe, you will get a refund of the VAT (value added tax).
Hi GTO

I would really appreciate if you could clarify or post a link which specifies deatiled info about the Custom duty with respect to CKD for Passenger cars.

As Mentioned in the Mumbai Custom webiste that the Basic Duty on CKD cars is 60%, then what is the basic duty on CBU Cars?

Thank

Amit
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Old 14th January 2011, 21:20   #21
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Default Re: What are the import duties on completely broken down car parts?

Am not sure if you really need to import a car; all you need to get is a ARAI authorized /approved modifier who can adapt any car of your choice and get that registered with the RTO. There are quite a few of them in India now providing this service.



Quote:
Originally Posted by 1Day View Post
Again thanks for your reply. I can see how its really difficult. So the hurdle is the 40k price tag. Which is ok, but the problem will be that this price is of parts alone and not the built car, so would that count for skipping homologation?

I will search and see what I find on the registration of a car in india.

The only reason I am doing my research up front is because I do not want to get stuck with a kit that I have no way of driving other than on track or private roads.

I have 90% made up my mind on this kit, the rest 10%, is trying to figure out all the hurdles from before hand. I would love to discuss the specifics of this with you if you get a chance.I am heading down to delhi for good first week of nov. I would love to settle down a little and then quickly start getting things together for this build.
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Old 15th January 2011, 15:31   #22
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Default Re: What are the import duties on completely broken down car parts?

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Originally Posted by kay4kay View Post
Am not sure if you really need to import a car; all you need to get is a ARAI authorized /approved modifier who can adapt any car of your choice and get that registered with the RTO. There are quite a few of them in India now providing this service.
ARAI approved modifier? Now that's a first. I have not heard of any ARAI certification for any modifier in the country. Irrespective, registering a custom-built car is no walk in the park.
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Old 20th March 2013, 16:50   #23
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Default Re: What are the import duties on completely broken down car parts?

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Originally Posted by GTO View Post
Here's some information on imports that might be useful to you. Though it should be accurate for the most part, it has been a while since I'd compiled it. Watch out for small errors:
GTO,

It's been a long time since this thread has had any activity, but curiosity makes me ask this.

Can an Indian citizen import cars under On transfer of residence clause even If the car being imported has an engine size in the range of 1000-2500cc? Also what would be the "duty" applicable in this case? 159.87% on the depreciated value or NIL?

Last edited by naut : 20th March 2013 at 17:12. Reason: Corrected technical error
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