Bringing a car from Dubai to India is getting more and more favorable among car buyers and returning NRIs. The whole thing is very appealing due to the low prices in Dubai and the availability of high-end models. On the other hand, the whole procedure means dealing with a mixture of import duties, compliance requirements, and associated costs for logistics in India.
Cost Breakdown Based on CIF Value
The calculation of import duties in India is based on the CIF value, which stands for Cost, Insurance and Freight. The duty structure differs according to the condition of the car; new or used, and the CIF value; whether it is above or below $40,000.
An approximate 125% total import duty is applied for new cars having a CIF below $40,000. This includes:
Basic Customs Duty (BCD): 70%
Additional Import Duty Component (AIDC): ~55%
On new cars with a CIF exceeding $40,000, the total import duty increases to around 165%, which consists of:
BCD: 70%
AIDC: ~95%
In case of used cars, regardless of the value, the amount of import duty that will have to be paid is about 137.5% which involves:
BCD: 70%
AIDC: ~67.5%
Prior to adding other costs such as GST, cess, and registration, these duties will be applied.
Additional Taxes and Fees
After the import duty assessment, numerous additional fees come into play:
GST: 28% for nearly all types of vehicles
Compensation Cess: Viewed as a 15%-22% tax factored into the price based on engine capacity and type of vehicle
Landing Charges: Computed as 1% of the CIF value
Registration and Road Tax: Depends on the Indian state; luxury vehicles usually fall under the expensive tax brackets
Say, an SUV with a CIF value of $50,000 will still be taxed and charged over $130,000 in total. Such a scenario makes importation justifiable for top models that are either not found in India or those whose price difference is very considerable.
Sourcing Vehicles from Dubai
The vehicle export ecosystem of Dubai is already well-established, and the Indian automobile industry has a steady reliance on the auto dubai export market to procure its cars. Exporters in this area provide a variety of services that include:
- Pre-shipment inspection and certification
- Export documentation and customs coordination
- Compliance checks for Indian regulations
- Digital tracking and insurance options
It is important to select a trustworthy exporter to ensure that there are no delays, hidden costs, or compliance issues. Further, a good number of exporters also provide assistance with RTO registration and homologation support in India.
Legal Process and Documentation
To import cars from dubai, buyers must follow a structured legal process. This includes:
- Obtaining an import license
- Ensuring the vehicle meets Indian safety and emission standards
- Submitting required documents:
- Purchase invoice
- Insurance certificate
- Bill of lading
- GATT declaration
- Roadworthiness certificate
- Emission compliance certificate (if applicable)
The vehicle must be right-hand drive; modification costs would be required also, not older than three years (for used imports), and must not have been registered previously in India. Customs clearance is mandatory, followed by registration with the local RTO.
Shipping and Logistics
Shipping methods consist of containerized transport and roll-on/roll-off (RoRo). High-priced vehicles are better protected during shipping with containers, while RoRo is cheaper. The duration of shipment from Dubai to Indian seaports such as Mumbai or Chennai is usually between 10 and 15 days.
The vehicle is customs-checked and has its duties evaluated as soon as it reaches the destination. After that, the car should be registered in the area, and this entails paying for the road tax, having a registration number assigned, and getting a fitness certificate.
What Every Importer Should Weigh Before Committing
Importing a car from Dubai to India involves a significant investment and thus requires meticulous planning and adherence to the laws. The buyers who want something rare, a car with high performance, or specific models, the procedure may be worth it, if it is carried out with the right partners and complete transparency.
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