In recent years, India and the UAE have emerged as major trading partners
o As of 2019, the UAE was India’s third-largest trading partner
o The gulf country has become an important political, economic and cultural partner for India
· One of the most important areas of trade between the two countries is automobiles
o Indian companies such as Ashok Leyland, Hero MotoCorp, and Tata have a strong presence in the UAE
o At the same time, Indians are also increasingly importing cars from cities like Dubai
· This blog discusses how to import a car from Dubai into India
Importing a Car from Dubai to India
· Before you import a car from Dubai into India, you need to ensure that you are meeting some basic import rules
o The car must be manufactured or assembled outside of India
o It should not be made by an Indian company and should display all information in Metric units
o Cars can only be imported to the country via specific ports, such as Mumbai, Chennai, or Kolkata
o The steering and controls of the car must be located on the right-hand side, unless you have a special permission
o The car should obey the rules of the Motor Vehicle Act 1988
o The car should not be on the list of banned vehicles. For instance, its engine capacity must fall between 1000 cc to 2500 cc
· Once you are sure that the car is fully compliant with all of the above regulations, you are ready to start the import process. In order to complete the process, you need to cover the following steps:
o There are two major ways to import a car from Dubai to India. The first way is to make use of an agent while the second method includes a direct import from a person in Dubai
o For both these methods, you will require certain documents. These documents include an invoice, an insurance policy, an import license, a GATT declaration, a bank draft, a bill of landing, a purchase order, and a test report. In addition, you may also require a Duty Exemption Entitlement Certificate if applicable
o Once you have completed all the documentation, you need to pay the import duties. At present, the import duty for cars stands at 165%. This includes the cost, insurance and freight (CIF) value
o After paying all the duties, you are ready to receive your car in India. However, you cannot just drive away with your car as yet. You need to submit the vehicle to one of the designated testing agencies
o The authorities will then test the vehicle and complete the process of homologation. Under this process, it is ensured that the vehicle is fit for use in India
· Once all of the above steps have been completed, you are ready to take possession of your car. You can drive it across the country without any issues
· Considering the fact that the import process is rather long and requires a lot of documentation, you may choose to avail the services of import consultants
Conclusion
· To conclude, it is clear that Indians like to import cars from abroad. Import figures continue to rise at a rapid pace. Institutions such as Euro Exim Bank offer customized support to importers in the form of financial instruments and bespoke trade advisory services. Euro Exim Bank offers financial instruments such as Bank Guarantees and Letters of Credit (LCs). Further information about Euro Exim Bank and its key product offerings is available here.