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Import duties on cars as C.B.U. & using Imported Cars through Carnet

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Does anyone know that how much duties you need to pay on Cars as C.B.U (Completely Build Unit)?

Though I'm not going buy any imported car in nearest future; but just for curiosity I googled it & found out numerous figures ranging from 100%-600%! So which is the correct one?

& according to a Discovery Channel show you can use your vehicles arround the globe using carnet (Which is passport for goods); So Is it allowed to buy a car in that perticular country & then bringing it here & useing it here using Carnet? Does Carnet have validity? are there any charges for carnet? & If yes how much?

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As far as I know the import duty is @ 120% of the cars price and 100% for Hybrids in India currently . Though through certain tie up's with some countries manufacturers can bring drivetrain and other components with a duty of 25%.

Carnet is applicable in India and one has to pay its fees which is less but the validity period is only of 2 months after which the car needs to be shipped back . One has to pay the duty in such cases which vary from vehicle to vehicke though I don't know about the % of tax on it ,one needs to check with the customs about it.

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Well, as far as my knowledge goes for a motor car intended for personal use (one designed to carry less than 7 persons) the custom duties are

Basic duty - 100% + CVD - 22% + Spl. CVD - 4% + Central Excise Edu. Cess - 3% + Customs Edu. Cess - 3%

So if you are importing a car costing Rs. 50 lakhs (Ex. showroom in the country of purchase), the import duty will be :

CIF - Rs. 80,63,172.59 (Cost Insurance and Freight)

Asses value - Rs. 79,83,339.20

As for Carnets or 'Merchandise passports', they are international customs documents intended to simplify customs procedures for TEMPORARY IMPORT of goods. It implies that once the intended purpose of the imported goods is over they will be returned to the country of origin (and NO, you cannot state that the intended purpose is going to take forever ). In the automobile world Carnets are used by racing teams, overlanders, expeditions etc...

Hope you find this information useful...

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Thanks for info!

I wish if import duties were less we colud drive that fantastic vehicals!

I highly Disagree , the current import duty is very good because had there been a duty of 50% then BMW, MERC & AUDI would have never set up assembly lines in India and hence to even service a car or if one required a part then to bring it from abroad would have cost us more .High duty has helped India seen as an export hub because the growth of Indian automobile is massive so world manufacturers like VW , GM and Ford set up factories here and use the cheap labour and export their cars to other part of the world which really helps the Indian economy.

Earlier in 2003-04 the Honda CRV used to cost only 14 lakhs but after the facelift it costed around 20 lakhs and now is at 30 lakhs this was a CBU from the launch days itself and now Honda claims that the next CRV will be manufactured in India (Rajasthan) with the i-CTDi engine and exported to EU ,Africa and SE nations.

So overall high import duty is a blessing even if car enthusiast like us crib about high import duty for those sporty cars.

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I highly Disagree , the current import duty is very good because had there been a duty of 50% then BMW, MERC & AUDI would have never set up assembly lines in India and hence to even service a car or if one required a part then to bring it from abroad would have cost us more .High duty has helped India seen as an export hub because the growth of Indian automobile is massive so world manufacturers like VW , GM and Ford set up factories here and use the cheap labour and export their cars to other part of the world which really helps the Indian economy.

Earlier in 2003-04 the Honda CRV used to cost only 14 lakhs but after the facelift it costed around 20 lakhs and now is at 30 lakhs this was a CBU from the launch days itself and now Honda claims that the next CRV will be manufactured in India (Rajasthan) with the i-CTDi engine and exported to EU ,Africa and SE nations.

So overall high import duty is a blessing even if car enthusiast like us crib about high import duty for those sporty cars.

I don't get your pt. The foreign car manufacturer are doing so just due so as resources are extreamly cheap here & India is huge market for them & they just can't afford to import them as CBU duty is even 25%, as indian customers are very possesive they never buy any product whose service is not available! For ex. Micromax makes fantastic cells, but just due to lack of good service network, they are lacking behind & thats why Maruti is always market leader. & If they want to sell their product across the globe only India & China can offer them that key price!

The cost cutdown is in production is so huge,such that import duty is not a big factor!

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I highly Disagree , the current import duty is very good because had there been a duty of 50% then BMW, MERC & AUDI would have never set up assembly lines in India and hence to even service a car or if one required a part then to bring it from abroad would have cost us more .High duty has helped India seen as an export hub because the growth of Indian automobile is massive so world manufacturers like VW , GM and Ford set up factories here and use the cheap labour and export their cars to other part of the world which really helps the Indian economy.

Earlier in 2003-04 the Honda CRV used to cost only 14 lakhs but after the facelift it costed around 20 lakhs and now is at 30 lakhs this was a CBU from the launch days itself and now Honda claims that the next CRV will be manufactured in India (Rajasthan) with the i-CTDi engine and exported to EU ,Africa and SE nations.

So overall high import duty is a blessing even if car enthusiast like us crib about high import duty for those sporty cars.

You are looking at it the wrong way. Audi, BMW and Mercedes are providing authorised service in India because people are buying their cars in large numbers across the country. And the reason people are buying them is because all three have launched cheap (relatively) models in recent months. These lower end models are imported as CKDs (which attracts a much lower duty thus making the cars cheaper) and assembled locally. So its the large volume thats prompting these companies to offer authorised service and not high custom duties and large volumes are driven by low costs...

I mean, wouldn't that be counterintuitive? If duties are very high only a handful of vehicles would be imported and if so why would the manufacturer bother with any kind of service, why would he care? Setting up of authorised service infrastructure involves a large expenditure and there has to be sufficient sales volume to justify that. As an example, Ferraris and Lamborghinis have been imported into India for many years now (although only in 1s and 2s). But until now neither of them bothered with providing any service backup simply because the volume was too low. Now however, with both opening authorised showrooms the availability of company approved service has become a reality...

Besides lower duties would bring Mercs and Beemers within reach of a larger number of buyers. This would force local manufacturers to provide better products to less fortunate customers like me who cannot afford a BMW. I will be happy with whatever technology that trickles down to me.... ;)

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I don't get your pt. The foreign car manufacturer are doing so just due so as resources are extreamly cheap here & India is huge market for them & they just can't afford to import them as CBU duty is even 25%, as indian customers are very possesive they never buy any product whose service is not available! For ex. Micromax makes fantastic cells, but just due to lack of good service network, they are lacking behind & thats why Maruti is always market leader. & If they want to sell their product across the globe only India & China can offer them that key price!

The cost cutdown is in production is so huge,such that import duty is not a big factor!

I am just saying that if foreign manufacturers have fantastic cars abroad then let them get it here as a CKD and assemble in India itself . If the duty were removed India would be having only HM ,Maruti ,Tata ,Hyundai and M&M as the only manufacturers producing car . GM, VW ,Audi,BMW etc would just import there cars and hence poor development rate of economy and higher priced spare and part with poor car services .

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You are looking at it the wrong way. Audi, BMW and Mercedes are providing authorised service in India because people are buying their cars in large numbers across the country. And the reason people are buying them is because all three have launched cheap (relatively) models in recent months. These lower end models are imported as CKDs (which attracts a much lower duty thus making the cars cheaper) and assembled locally. So its the large volume thats prompting these companies to offer authorised service and not high custom duties and large volumes are driven by low costs...

I mean, wouldn't that be counterintuitive? If duties are very high only a handful of vehicles would be imported and if so why would the manufacturer bother with any kind of service, why would he care? Setting up of authorised service infrastructure involves a large expenditure and there has to be sufficient sales volume to justify that. As an example, Ferraris and Lamborghinis have been imported into India for many years now (although only in 1s and 2s). But until now neither of them bothered with providing any service backup simply because the volume was too low. Now however, with both opening authorised showrooms the availability of company approved service has become a reality...

Besides lower duties would bring Mercs and Beemers within reach of a larger number of buyers. This would force local manufacturers to provide better products to less fortunate customers like me who cannot afford a BMW. I will be happy with whatever technology that trickles down to me.... ;)

You are right! & thats what I ment to say!

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Guys all I am saying is that if the duty weren't high enough then even the C , 3 & A4 would have been directly imported rather than assembled here ,hence manufacturers would be eager enough to provide good enough service . But with the plant established for CKD they are more eager and provide world class showrooms and service centres .

I know that the 7 ,A8 and other top end offerings are CBUs . Just saying that now they have a base established in India hence they provide better facilities (FDI result) . Hence I support high import duty and taxes.

Ps India doesn't allow for import of LHD cars but the Bugatti Veryon and other exotic cars have been allowed because they give good revenue in form of tax .

Bugatti roughly costs 7 Cr but with the taxes and customs one has to pay 16 Cr

Aston One-77 costs 20 Cr and we can buy it at 42 Cr .

Edited by rssh

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Guys all I am saying is that if the duty weren't high enough then even the C , 3 & A4 would have been directly imported rather than assembled here ,hence manufacturers would be eager enough to provide good enough service . But with the plant established for CKD they are more eager and provide world class showrooms and service centres .

I know that the 7 ,A8 and other top end offerings are CBUs . Just saying that now they have a base established in India hence they provide better facilities (FDI result) . Hence I support high import duty and taxes.

Ps India doesn't allow for import of LHD cars but the Bugatti Veryon and other exotic cars have been allowed because they give good revenue in form of tax .

Bugatti roughly costs 7 Cr but with the taxes and customs one has to pay 16 Cr

Aston One-77 costs 20 Cr and we can buy it at 42 Cr .

Yes I agree with that. But I would like to reiterate that it was the lower duty structure on the CKD kits which enticed these manufacturers to set up a plant. Since the vehicles are imported in the knocked down form, the company needs some place to assemble them.

Anyways what we are forgetting here is the main reason these companies give for not setting up a manufacturing unit : Indegenisation. These cars (the low end as well as the flagship models) are loaded to the gills with technology. Even without any duty they would still be prohibitively expensive. To bring costs down most car makers indegenise or source components from local suppliers. (Sometimes they choose the middle ground and decide to assemble where every component is imported and simply put together in a factory.) However, the big three believe that doing so in case of India would force them to compromise on the product quality. This is really an insult because many Indian OEM units are suppliers to a range of big ticket foreign customers. So unless the big three start showing some respect for our production capabilities we are stuck with importing... :(

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Guys all I am saying is that if the duty weren't high enough then even the C , 3 & A4 would have been directly imported rather than assembled here ,hence manufacturers would be eager enough to provide good enough service . But with the plant established for CKD they are more eager and provide world class showrooms and service centres .

I know that the 7 ,A8 and other top end offerings are CBUs . Just saying that now they have a base established in India hence they provide better facilities (FDI result) . Hence I support high import duty and taxes.

Ps India doesn't allow for import of LHD cars but the Bugatti Veryon and other exotic cars have been allowed because they give good revenue in form of tax .

Bugatti roughly costs 7 Cr but with the taxes and customs one has to pay 16 Cr

Aston One-77 costs 20 Cr and we can buy it at 42 Cr .

Yes, you are partially right!

But Don't you think that this is 'Robin Hood' kind of taxation Policy & that too in "Half Robin Hood's conutry!"

(For understanding above statement you must have seen starting quarter of Tees Maar Khan!)

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Yes I agree with that. But I would like to reiterate that it was the lower duty structure on the CKD kits which enticed these manufacturers to set up a plant. Since the vehicles are imported in the knocked down form, the company needs some place to assemble them.

Anyways what we are forgetting here is the main reason these companies give for not setting up a manufacturing unit : Indegenisation. These cars (the low end as well as the flagship models) are loaded to the gills with technology. Even without any duty they would still be prohibitively expensive. To bring costs down most car makers indegenise or source components from local suppliers. (Sometimes they choose the middle ground and decide to assemble where every component is imported and simply put together in a factory.) However, the big three believe that doing so in case of India would force them to compromise on the product quality. This is really an insult because many Indian OEM units are suppliers to a range of big ticket foreign customers. So unless the big three start showing some respect for our production capabilities we are stuck with importing... :(

It's not only with auto-components, but with all the products that india export! Legends have said that your past is always with you! & after Corporate & Political scams & attitude of cheating where-ever possible; It's really hard to trust anyone with 'Indian' Tag!

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