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Old 13th November 2009, 01:31   #1
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Default Indian customs and super bike imports!

Hello all,
I live in germany for the past 2 years and I own a Honda CBR 900 RR for the past 13 months. I know I can export it to India under no customs taxes as Residence Change (ofcourse I have to shell out some decent amount but its ok). Can someone point me to any central govts website or document which proves this clearly. Because I've been getting very contradicting answers even from some customs people. They say even if you live abroad for 2 yrs and own a vehicle for more than 1 year, you still have to pay 142% tax!!

See some sources which prove this!!

Custom Information (Services)
P M Packers & Movers, India: Packing & Moving Agents For Door To Door Moving & Relocation Services

Any thoughts?
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Old 13th November 2009, 04:14   #2
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Arun,

I think that is true. I live in the US and one of my friend rides a Harley. He is going back for good and has done some inquiries and he told me that he has to pay around 140% duty no exceptions.

So i guess the info is true.

by the way very nice bike, i currently ride a cruiser but want to enter the superbikes segment. I am currently looking at CBR600RR or a ZX-6R.

Happy riding.
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Old 13th November 2009, 04:46   #3
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Yes it is true that customs charges 145% depreciation value on your bike when you bring it under T.R.

Depreciation is calculated by customs like this:

4.0 % per quarter in the 1st year x 4 quarters = 16% total
3.0 % per quarter in the 2nd year x 4 quarters = 12% total
2.5 % per quarter in the 3rd year x 4 quarters = 10% total
2.0 % per quarter in the 4th year x 4 quarters = 08% total
2.0 % per quarter in the 5th year x 4 quarters = 08% total
2.0 % per quarter in the 6th year x 4 quarters = 08% total
2.0 % per quarter in the 7th year x 4 quarters = 08% total

TOTAL = 70% depreciation

So if someone imports a bike that is used 7 or more years, they pay duty on the depreciated value but since duty is charged on CIF (cost insurance & freight), customs will add the freight and insurance paid on the bike for shipping it to India and then charge duty on that value.

Hope this helps.

Finally just a thought, if you have modified your vehicle a lot then it is worth getting it to India, if not you can find good Honda 900 from a dealer itself. You might end up buying it for a cheaper price there.

Last edited by shrini78 : 13th November 2009 at 05:00.
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Old 13th November 2009, 10:04   #4
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The only advantage with TR is that you can bring your bike back.
There is not difference in the duties

Otherwise you cannot import any vehicle that is older than 3 years.
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Old 13th November 2009, 16:53   #5
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Thanks for your comments guys! I got it for a very good price 2000 euros so I think even if they charge me a max of 154% its a good deal!

But I just don't get it!!

Take a look at this thread --> [FONT=Arial][COLOR=#800080]http://www.team-bhp.com/forum/motorbikes/5724-import-regulations-bikes-2.html[/COLOR][/FONT]

Isn't this contradicting?
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Old 13th November 2009, 18:24   #6
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Quote:
Originally Posted by shrini78 View Post
Yes it is true that customs charges 145% depreciation value on your bike when you bring it under T.R.
=================
Hope this helps.
So, considering my bike is a 1999 year model, its 10 years old and the value of the bike is 1850 Euros. Including insurance 350 Euros and freight charge of 750 Euros, it totalls to 2950 Euros. Then is it like 145% duty - 70% depreciation? If yes, balance 75% as tax on 2950 is 2065 Euros, which is what i have to pay?? Is my calculation correct?
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Old 13th November 2009, 21:40   #7
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Quote:
Originally Posted by arun_prakash21 View Post
So, considering my bike is a 1999 year model, its 10 years old and the value of the bike is 1850 Euros. Including insurance 350 Euros and freight charge of 750 Euros, it totalls to 2950 Euros. Then is it like 145% duty - 70% depreciation? If yes, balance 75% as tax on 2950 is 2065 Euros, which is what i have to pay?? Is my calculation correct?
i'm pretty sure its not

Where did you get the value of the bike as 1850 Euros?

You have to take the original sticker(invoice) price of the vehicle.

And for this, you might even have to get a certificate from a honda dealership that in such and such year, the listed price of the bike was xxx.

Then, I'm pretty sure the depreciation has to applied onto the value of bike. Not on the duty like you did

Lastly the depreciation that has to be followed is the "Written down method"
ie, if the value is 100 and the depreciation is 10%, in the first year, you can minus Rs10.
Then the value of the item is reduced to 90.
After that, you have to minus Rs9 (10% of 90).
So you have Rs 81 as the value of the bike....and so on.


Sample calculation:

Valuue of bike=6000
shipping=500
insurance=200
depreciation =7 years (Disclaimer:I am assuming the previous poster had the depreciation figures of 4%per quarter, then 3 etc correct)

Therefore Depr in 1st year = 15%
2nd year = 11.5%
3rdyear = 9.6%
4th year onwards =7.76% per year

So for 7 years it is 50.68% depreciation.

Now take the original value of the bike =6000 x 0.5068
=3000 (roughly)
Add the shipping and insurance =3700
Duty of 140% =5180 to be paid



A bit complicated...but any forwarder should be able to do this for you.

Anyone please feel free to correct me as I'm not an accountant.

Last edited by simplythebest : 13th November 2009 at 21:44.
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Old 14th November 2009, 13:23   #8
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Other must read threads:

Import regs for bikes

How to buy & live with a superbike in India
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Old 14th November 2009, 19:23   #9
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Quote:
Originally Posted by simplythebest View Post
i'm pretty sure its not

Where did you get the value of the bike as 1850 Euros?

You have to take the original sticker(invoice) price of the vehicle.

And for this, you might even have to get a certificate from a honda dealership that in such and such year, the listed price of the bike was xxx.

Then, I'm pretty sure the depreciation has to applied onto the value of bike. Not on the duty like you did

Lastly the depreciation that has to be followed is the "Written down method"
ie, if the value is 100 and the depreciation is 10%, in the first year, you can minus Rs10.
Then the value of the item is reduced to 90.
After that, you have to minus Rs9 (10% of 90).
So you have Rs 81 as the value of the bike....and so on.


Sample calculation:

Valuue of bike=6000
shipping=500
insurance=200
depreciation =7 years (Disclaimer:I am assuming the previous poster had the depreciation figures of 4%per quarter, then 3 etc correct)

Therefore Depr in 1st year = 15%
2nd year = 11.5%
3rdyear = 9.6%
4th year onwards =7.76% per year

So for 7 years it is 50.68% depreciation.

Now take the original value of the bike =6000 x 0.5068
=3000 (roughly)
Add the shipping and insurance =3700
Duty of 140% =5180 to be paid



A bit complicated...but any forwarder should be able to do this for you.

Anyone please feel free to correct me as I'm not an accountant.
Oh man! This is getting worse!
I thought the duty is calculated on the vehicle purchase price which is 1850 euros! so the vehicle purchase price hasn't got anything to do with the duty??!
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Old 15th November 2009, 13:14   #10
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Quote:
Originally Posted by arun_prakash21 View Post
Oh man! This is getting worse!
I thought the duty is calculated on the vehicle purchase price which is 1850 euros! so the vehicle purchase price hasn't got anything to do with the duty??!


Duty is calculated on the original invoice price minus depreciation.

Vehicle purchase price is irrelevant unless of course that is higher. If for example you are bringing a classic car in, I guess the purchase price would be more than the original invoice value.
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Old 15th November 2009, 19:13   #11
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I just made some quick calculations in the head, and after the 145% duty, your purchase cost, shipping and clearing expense and one time tax, your fireblade chould cost you between 3.5 - 4L, which is the price you have to be very lucky to find a technically and paper clean 900RR of that age in India.
Ideally it would set you back like 4.5L for a clean papers bike of similar vintage.
Only if the bike is absolute mint, I say bring it down, not to save the 50K odd, but to be sure you are going to have a clean bike.

manson.

Last edited by manson : 15th November 2009 at 19:14.
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Old 16th November 2009, 15:16   #12
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Now I need to find the invoice price of the bike in 1999.. hmm.. anyway, the vehicle is in good condition, paper clean etc.. I think i can manage to get away with it in the customs, if u know what I mean

I'm gonna bring it down.. thanks a lot for the calculations, suggestions and options given.. appreciate it a lot folks!
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Old 17th November 2009, 00:08   #13
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Is that a Micron Pipe?
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Old 23rd November 2009, 14:49   #14
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Yep, its a micron pipe..
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Old 23rd July 2010, 13:10   #15
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Under TR the duty for used bike is 145%.The value is fixed by Government approved valuers.It is based on purchase price and any thing spent on that after your purchase like refurbish,service etc.I custom cleared our Harley on 20th of this month.
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