Shipping a New or Used Car from Dubai to India? Know the Cost and Export-Import rules.
Many people in the United Arab Emirates (UAE) are lucky enough to own their dream car. But what happens when you want to take that dream on the road and drive it around India for a while? This article is here to guide you through the process.
Driving in India can be a thrilling adventure for car enthusiasts. However, permanently moving your car to India could be costly, as you might pay at least 125 percent of the car’s value in taxes and other fees. It is without considering the expenses of altering the driving side to match Indian roads. The average shipping cost for a new or used car from Dubai to India is between AED 6,000 and AED 15,000. The exact cost will vary depending on the size and type of car, the shipping company, and the port of arrival.
However, there’s a way to temporarily transport your car from the UAE to India, avoiding those hefty costs.
Can we import used cars from Dubai to India?
Yes, you can import used cars to India, but there are certain conditions you must adhere to:
- Age of Car: The car must be at most three years from its manufacturing date.
- Port of Entry: The vehicle can only be imported via Mumbai. Other ports in India do not allow the import of used cars.
- Speedometer: The speedometer of the car must display values in kilometers, not miles. It is because India uses the metric system for distance measurement.
- Country of Origin: The car must be imported from the country where it was manufactured. For instance, if your car was manufactured in Japan, it must be shipped from Japan to India. You cannot import it to India from a third country.
- Manufacturing or Assembly: The car must have been manufactured or assembled outside India. Cars assembled or manufactured in India are not eligible for import as used vehicles.
Obtain a Carnet de Passage en Douane (CPD)
Think of the CPD as a passport for your car. It’s an internationally recognized travel document and is often legally required to use foreign-registered vehicles in most countries temporarily.
A CPD contains all details about the vehicle and its owner, including the permit’s expiry date and countries visited using the CPD. It simplifies custom formalities, eliminating the need for immediate cash deposits, fees, or additional national import documents.
You can obtain a CPD from the UAE’s Emirates Motorsport Organization (EMSO) office, which is governed by the UAE’s Federal Transport Authority – Land and Maritime and the Federation Internationale de l’Automobile (FIA).
Application for CPD
The CPD application form must contain all relevant vehicle details, owner information, and visa and driving license details. It should also include contact details for two UAE-based references and two in the destination country. Remember to attach copies of all required documents, such as your visa, passport, driver’s license, and car registration.
In addition to the application, a refundable cash deposit and bank security cheque are needed. The amounts vary based on the destination country, vehicle type, year of manufacture, model, and other factors.
The service charges for obtaining a CPD are approximately Dh1,200, not including the deposits.
RTA’s Tourism Certificate
After obtaining the CPD, the next step is to get a tourism certificate from the Roads and Transport Authority in the UAE. You can acquire this at any Tasjeel office.
Requirements for the tourism certificate include your original Emirates ID, vehicle ownership certificate, Electronic No Objection Certificate (NOC) from the mortgagee if the vehicle is under the mortgage, and a NOC from the Emirates Motorsports Organization. The service fee starts from Dh100 based on the weight of your vehicle, and all pending fines must be cleared before you can get the certificate.
Shipping and Collection
With the CPD and tourism certificate, you’re ready to ship your vehicle. Shipping can take 5 to 8 days by sea, typically the preferred method. You can expect to pay around Dh6,000 to Dh7,000 for one-way door-to-door vehicle transport in a 20-ft. single container when shipping to India, though this rate can vary. It’s crucial to ensure that there are no additional items in the car when it’s shipped, as this could cause issues with customs officials in India.
Remember, these rates are subject to change, and it’s essential to conduct research and contact ATCUAE directly for the most current information. As per Indian customs rules, your car must be shipped within 30 days of your arrival in India and can stay for up to 6 months. If there’s a delay, goods can only be cleared if customs excuse the delay.
Navigating temporarily or permanently importing your car to India can be daunting, but the journey will be worth it.
Preparing Your Vehicle for Transport
Before your vehicle is shipped, ensure it’s prepared to endure the journey. Here are a few steps you should follow:
- Inspection: Have your vehicle thoroughly inspected by a professional mechanic. Any operational issues should be fixed before shipping.
- Clean: Thoroughly clean your vehicle, both inside and out. Customs officials will inspect the vehicle; any dirt or debris could cause delays.
- Empty: Remove all personal belongings from the vehicle. As mentioned earlier, additional items could lead to complications with customs in India.
- Fuel: It’s recommended to leave about a quarter tank of fuel in the vehicle. That is enough to load and unload the vehicle without adding unnecessary weight.
Arrival in India
Upon your car’s arrival in India, there are a few additional steps to take:
- Customs Clearance: You’ll need to pay for customs clearance in India. That can be done via the ICEGATE e-payment portal, where you can select the invoice and choose your payment method.
- Vehicle Collection: Once your vehicle has cleared customs, it will be collected. You should thoroughly inspect the car for any signs of damage incurred during the shipping process.
- Driving in India: Driving in India can differ greatly from the UAE, so familiarize yourself with the local rules and regulations. Notably, traffic in India moves on the left-hand side of the road, opposite what’s typical in the UAE.
Remember, importing used cars for up to three years from manufacturing in India is only possible. Also, the car can only be imported from its country of manufacture and must be assembled or manufactured outside India.
How to pay the customs clearance fee in India?
The customs clearance fee in India for importing goods, including vehicles, can be paid online through the ICEGATE (Indian Customs Electronic Commerce/Electronic Data Interchange (EC/EDI) Gateway) portal. Here’s a step-by-step guide on how to do this:
- Visit the ICEGATE e-payment portal: This is the platform through which all e-payments for customs duties and taxes are made in India.
- Input Your Details: Once you’re on the portal, you’ll need to enter your Import/Export code, a unique identification number assigned to every importer and exporter in India. If you’ve already registered and have login credentials provided by ICEGATE, you can use these instead.
- Navigate to the e-payment section: On the ICEGATE portal, look for the e-payment option and click on it.
- View Unpaid Challans: After clicking on e-payment, you’ll see all unpaid challans (invoices) registered under your name or your Import/Export code.
- Select the Challan: Choose the specific challan you wish to pay for your vehicle’s customs duties and taxes.
- Choose a Payment Method: After selecting the appropriate challan, you can choose your preferred payment method. The portal typically supports various payment options, such as debit cards, credit cards, net banking, etc.
- Make the Payment: Follow the instructions provided to complete the payment. Ensure to note the transaction ID or any relevant details for future reference.
Please note that you must keep all payment receipts and transaction details for future reference or in case of any discrepancies. Always ensure your payments have been processed and accurately reflected on your account. It will ensure a smooth clearance process for your vehicle in India.
How much does shipping a car from Dubai to the USA cost?
Shipping a car from Dubai to the United States is a popular service, especially among ex-pats returning home or those moving for work or study. The cost of shipping a vehicle from Dubai to the USA can vary greatly depending on several factors, such as the size and weight of the car, the shipping method chosen, the departure port in Dubai, and the destination port in the USA.
As a general estimate, the starting cost for shipping a car from Dubai to the USA is around USD 2,750. However, this cost is a baseline figure and can increase based on the factors mentioned earlier. Here’s a brief breakdown:
- Size and Weight of the Vehicle: Larger and heavier vehicles may cost more to ship due to the additional space and weight they add to the shipment.
- Shipping Method: Shipping can be done via various methods, including container shipping, roll-on/roll-off (RoRo) shipping, or air freight. Container shipping, where the car is loaded into a container, is generally more expensive but offers more protection. RoRo shipping, where the car is driven onto the vessel, is often cheaper but provides less protection.
- Departure Port in Dubai: The cost can also vary based on the departure port in Dubai. Different shipping companies may operate from different ports, affecting the price.
- Destination in the USA: The destination port in the USA can also significantly affect the cost. East Coast destinations might have different costs compared to West Coast destinations due to the different shipping routes and distances involved.
- Additional Costs: Remember to avoid potential additional costs such as insurance, customs duties, taxes at the destination port, and potential storage fees if you can’t pick up your car immediately upon arrival.
The estimated turnaround time for such a shipment is 20-35 days. That is subject to change based on various factors, including the specific shipping route, weather conditions, and administrative factors at the departure and destination ports.
Can we ship a car from Dubai to India?
Yes, you can certainly ship a car from Dubai to India. However, there are certain conditions and regulations you need to be aware of to ensure a smooth process. Here is a brief guide to some of these key considerations:
- Visa Requirements: As a foreign national, you must possess a valid resident, business, work, or entry visa to India before you initiate the shipping process. That is because the Indian customs authorities need to verify your legal status in the country before they allow the import of personal goods, including vehicles.
- Timeline for Shipping: As per the regulations, the goods, in this case, the car, must be shipped out within 30 days of the owner’s arrival in India. It would be best to plan your car’s shipping in sync with your travel dates to India.
- Timeframe for Car Shipment: The car can be shipped to India within six months of your arrival. It provides a relatively wide window for you to make the necessary arrangements for your car’s shipment after you’ve settled in.
- Potential Delays: Should there be any unforeseen delay in shipping your car, it can still be cleared by Indian customs only if they condone the delay. That is assessed on a case-by-case basis, and it’s not guaranteed that all delays will be condoned. Therefore, adhering to the specified timelines as much as possible is advisable to avoid potential complications.
How much does it cost to import a car to India?
Importing a car to India can be complex and costly, largely due to the heavy import duties that the country levies on imported vehicles. Here’s an overview of what you can expect to pay:
India imposes a substantial customs tax on imported cars, with the exact amount depending on the vehicle’s Cost, Insurance, and Freight (CIF) value. The CIF value is the total cost of the car, insurance, and freight charges to ship the vehicle to India.
- For High-Value Cars: For imported cars with a CIF value exceeding USD 40,000, the customs duty is currently set at 100%. It means that for a car with a CIF value of USD 50,000, you will pay an additional USD 50,000 in import duties alone, doubling the cost of the car.
- For Lower-Value Cars: For vehicles with a CIF value below USD 40,000, the import duty is slightly lower, at 60%. Using the same calculation method above, a car with a CIF value of USD 30,000 will attract an import duty of USD 18,000.
- For Used Cars: If the imported vehicle is used, the import duty is even higher, at 125%. That reflects India’s policy of discouraging the import of used cars to protect the domestic automobile industry.
Remember that these import duties include any shipping costs and other fees associated with importing a vehicle. It’s also crucial to note that these rates can change as the Indian government updates its taxation policies.
Given the complexity of importing a vehicle to India and the high costs involved, working with a reputable shipping and import agent who can guide you through the process is recommended. They can help ensure that all paperwork is correctly filed, that all regulations are complied with, and that the process runs as smoothly as possible.
Please remember that all figures provided here are subject to change. Checking the most recent tax rates and regulations before importing a car to India is recommended.