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Journalism of Courage
Customs raids at multiple locations, including the premises of film professionals, in Kerala, have exposed the smuggling of foreign cars from Bhutan to India.
The searched premises included the homes of popular Malayalam actors Dulquer Salmaan and Prithviraj Sukumaran. However, the actors and others alleged to have bought smuggled vehicles may not be part of the racket that is under investigation, sources said.
Here is a look at the legal routes for importing foreign vehicles and what happens to an illegally imported vehicle impounded by Customs.
When a non-resident Indian returns to India after ending their expatriate life (transfer of residence), they are eligible to import their car, provided they are the first owner and the vehicle has been in use for at least two years in that foreign country.
It should not have any financial liability with any firm and should not be for resale in India.
A new imported vehicle, other than a railway or tramway, can be brought into India provided it has not been manufactured or assembled in India, and has not been sold, leased or loaned before importation into India.
Second-hand or used vehicles are allowed to be imported into India, subject to certain conditions. A second-hand car being imported into India should have been sold, leased or loaned or registered for use in any other country before importation into India.
The second-hand car should not be older than three years from the date of manufacture and should have right-hand steering, have a speedometer indicating the speed in Kilometres, and have photometry of the headlamps to suit keep-left traffic.
Eligibility of the vehicle
A foreign car meant for import should have homologation in India, which means that particular vehicle has met various safety, technical, emission and other parameters laid by the government for Indian roads. Such a vehicle should be right-hand drive. The Automotive Research Association of India is the agency for vehicle homologation in the country.
Process for import
With all valid documents, an NRI should apply to the Ministry of Commerce for a customs clearance permit for the import of a vehicle.
Once the permit is granted, the vehicle can be shipped to the selected port in India, where Customs inspects the vehicle and the eligibility of the owner. After examining the bill of entry and invoice, Customs will conduct an appraisal of the vehicle to arrive at its value, fixing various duties and taxes before releasing the vehicle for registration with the RTO concerned.
This allows an NRI to import his favourite vehicle for temporary use (six months) in India through an ATA carnet, which allows duty-free, temporary use of vehicles/goods without paying any duty, other than Customs clearance.
ATA carnet is an international uniform customs document issued by 79 countries, including India. It allows duty-free import of goods to all member countries. This practice is rampant in Kerala, where rich NRIs from the Middle East import their costly SUVs to the state for temporary use. It can be used in India for the period specified with registration of the country of origin. Left-hand drive cars are also allowed in this scheme. It should be used only for the personal purpose of the importer and should be taken back to the country of origin within the specified period. However, if a person returns abroad before the particular period, he has to surrender the vehicle to the Customs.
The seized vehicle would be treated like any other smuggled goods. Customs will have to find out the person who had illegally imported the vehicle to India. After finding the bill of entry recorded during the import, the person involved in the smuggling will be served notice to explain why the vehicle could not be confiscated under the Customs Act. This notice had to be served within six months, extendable to another six months; otherwise, the vehicle had to be released. As per the departmental adjudication,
Customs can take civil and criminal proceedings. Once it is realised as a smuggled item, Customs can levy a redemption fee, Customs duty and a penalty for smuggling and give a release of the vehicle. However, if the value of the smuggled item (vehicle) is above Rs 50 lakh, the Customs can initiate criminal proceedings against the accused person.
