Q56. Temporary Import of cars to India by Foreign Nationals working in India

Question: Hi There, I am a Citizen of New Zealand who also holds an OCI Card. I am being posted to India by my company for work for approximately 2 yrs. What is the rate of duty payable if i bring my car along and wish to take it back with me when i return to New Zealand. Thanks & Regards, Zubin Wadia

Answer: There are two ways where temporary import of cars to India by foreigners is allowed. 1. Temporary import of a car can be done duty free under the ATA carnet system to 84 countries including India. The Carnet way is for tourists visiting India and this method is for a maximum duration of six months.

Under the Carnet guarantee, payment of import duties and import taxes are generally not required. Click HERE to visit the Carnet website for detailed information. 2. The other one is the provision for foreign nationals working in India.

They can import a car to India if contract period for the employment, assignment in India is not be less than one year. There are some conditions that have to be met and guarantees given that the car would be taken out of India at some point of time when employment is over. There are also restrictions placed whereby cars imported into India by this channel cannot be sold privately.

In case the vehicle has to be sold, it must be sold only to the state trading corporation of India. Guarantees for customs duty I believe need to be provided in such cases and sometimes they may be as high as the customs duty plus 10% which may be refundable when the car is taken back out of India. Indian customs duty on a new car works out to 181%.

Depreciation is allowed depending on the age of the car. For every quarter during 1st year depreciation of 4%. For every quarter during 2nd year 3%, For every quarter during 3rd year 2.5% and for every quarter during 4th year and thereafter 2%.

Please be aware that facts and figures change periodically so you should confirm current rules and regulations with the Indian customs authorities. You may be able to get the required information from the Indian consulate in New Zealand. Your freight forwarding company that you plan to ship the car with to India may also be able to provide you with this type of Information.

More Car Info for NRIs