Import of Passenger Cars into India

Import of passenger Cars / Jeep / Multi utility vehicles:

The following rates of Duty are applicable for the import of motor cars and other motor vehicles principally designed for the transport of persons including station wagons and racing cars. Since motor vehicles aren’t ‘Baggage’, the duties are collected at the Tariff rate taking into consideration Exemption Notifications, if any.

Basic Customs Duty
Additional Customs Duty
Special Additional Duty
Total Effective Duty
New, which have not been registered anywhere prior to import-
  1. if imported as Completely Built-up Units (CBU)

    Explanation I.- "Completely Built-up Unit" means completely assembled vehicle, whether or not fitted with tires or batteries.

    Explanation II.- For removal of doubts, it is hereby clarified that if the engine and the gear box assemblies are installed in the body assembly of a vehicle, then such vehicle shall be deemed as a Completely Built-up Unit.

  2. if imported in any other form




Other i.e. already registered

The value of these vehicles to levy customs duty is CIF value, where C stands for the cost of the goods, I is the insurance, and F is the freight. The cost in the case of a new vehicle is the transaction value between the seller and the buyer; however, in the case of old and used vehicle’s cost is arrived at by taking the value of the vehicle in the year of manufacture and after allowing depreciation at following rates.

For every quarter 1st year 4%
For every quarter during 2nd year 3%
For every quarter during 3rd year 2.5%
For every quarter during 4th year 2% subject to a maximum depreciation of 70%

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