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Booklet for Saudi Nationals visiting India

Chapter No. VI.

Deals with Procedures of availing, importing, purchasing, registration and disposal of

Motor Vehicles.

REGULATION FOR MOTOR VEHICLES

FOR EVERY PURCHASE/IMPORT OF MOTOR VEHICLES OR ITEMS OTHER THAN MOTOR

VEHICLES A PRIOR APPROVAL HAS TO BE OBTAINED FROM THE PROTOCOL SPECIAL, MINISTRY

OF EXTERNAL AFFAIRS, GOVT. OF INDIA, JAWAHARLAL NEHRU BHAWAN, NEW DELHI, WELL IN

ADVANCE OF IMPORT OR PURCHASE.

1. Diplomats will be allowed to import availing of exemption from payment of customs duty, or

purchase locally, availing of exemption from payment of excise duty one motor vehicle for

their personal use within two years from the date of their arrival in India. The condition

relating to purchase of vehicle within two years of arrival is, however, not applicable in the

case of Heads of Missions in India.

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2. Diplomats of the rank of First Secretary and above, if accompanied by members of their

family, will be permitted to import duty free/purchase locally with exemption from payment

of customs/excise duty a second car for personal use within a period of two years from the

date of arrival in India.

3. Imported non-Commercial Motor vehicles:

Imported non-Commercial Motor vehicles to be registered in the National Capital Region

including National Capital Territory of Delhi shall conform to Bharat Stage IV emission

norms. Vehicles to be registered in other State/Locality of India will similarly conform to the

norms applicable in the respective state, as notified from time to time. (This condition will

however not apply to CNG vehicles). The Certificate on emission norms will be obtained

either from the manufacturer of the imported motor vehicle or its authorized representative.

4. All Diplomatic missions/Posts will be allowed to purchase staff cars “within reasonable

limits” on the principle of reciprocity. All cases of purchase will continue to be with the prior

approval of the Protocol Special Section of the Ministry of External Affairs, Govt. of India.

Requests will be cleared within one week.

5. Export of Motor Vehicles: Imported motor vehicles of the Embassy and Diplomats/Officials may be allowed to be

exported without export trade control formalities, on the principle of reciprocity, on

production of a certificate from the Head of the Mission concerned or an officer duly

authorized by him stating that:

i) The Motor vehicle was imported by the mission/privileged person without exchange

control formalities.

ii) No foreign currency transaction is envisaged in the proposed export; and

iii) Exemption from Export trade control formalities is allowed to the Indian Diplomatic

Mission, Consulate and the privileged members in the country of the Diplomat

concerned.

iv) Left Hands Drive Motor Vehicles cannot be sold/disposed of to a non-privileged

person in India.

6. REGULATIONS FOR SALE/DISPOSAL OF MOTOR VEHICLES:

A. Vehicles imported free of customs duty:

The Foreign Privileged Persons” Rules 1957, as amended from time to time, govern the

disposal of motor vehicles imported against exemption from payment of Customs Duty. The

Rules offer following options:

i) Export the vehicle with prior permission of the Protocol Special on Application form

no.17 (Annexure VIII)

ii) Can sell to another privileged person the vehicle after one year of Registration with

the permission of the MEA (on Form No.17).

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iii) Can sell after three years from registration date to any non-privileged person, with

the permission of the Ministry of External Affairs Protocol Spl. Division, on payment

of applicable customs duty as assessed at the time of sale/disposal. (on Form No.17)

iv) A privileged person if transferred before three years from Registration Date, can sell

the vehicle to a non-Privileged person on payment of applicable Customs duty, only if

such car had been imported within one year of his arrival.

v) If a car is accidental /damaged can be sold to the Insurance Company that has

insured the vehicle without prejudice to the latter’s rights to sell. If the Insurance

Company declines the offer, the vehicle may sold to a suitable agency for scrapping

only.

NOTE: Left-hand drive vehicle cannot be sold/disposed of to a non-privileged person

in India.

7. Sale of Duty-Free vehicles to non-privileged persons with exemption from payment of

Customs Duty is allowed in the following cases:

a) Dip. Missions, on the principles of reciprocity, will be allowed to sell their vehicles in the open market to non-privileged persons without payment of Customs Duty on expiry of

four (4) years from Registration Date. Request for such permission may be submitted to

Protocol Special in advance of final departure of the beneficiary from India.

8. Customs Duty on sale/disposal of imported Duty-Free motor vehicles to non-Privileged

persons is determined by and is also payable to the Commissioner of Customs nearest to

the headquarters of the privileged person concerned. The Customs Duty is calculated in the

following manner:

a) For sale to a non-privileged person the Duty shall be determined after allowing for

depreciation at the sales specified by the CBEC (Central Bureau of Excise and Customs)

for imported second-hand cars. The rate of Customs Duty and the exchange rate of

foreign currency shall as prevailing on the date of approval of sale/disposal.

b) Duty on totally damaged vehicles shall be determined by Customs authorities taking into

account the sale price as inclusive of duty. The rate of Duty shall be taken as applicable

to vehicles not so damaged at the time of sale/disposal.

c) If a vehicle is stolen, customs duty shall still be payable. The customs duty shall be

determined taking into account the amount of insurance claim as inclusive of duty and

the rate of duty shall be same as prior to its being stolen. (The missions are advised to

insure the vehicles for a value equal to cost plus customs duty applicable).

B. Locally Manufactured vehicles:

9. Locally manufactured cars purchased with exemption from payment of Central Excise Duty

or with refund of such duty may be exported or sold or transferred to other privileged

persons/organizations only the permission of the Protocol Special, MEA. Application for such

sale/disposal shall be submitted in Form No 18 (Annexure IX).

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10. The vehicle on completion of 3 years from Registration date may be allowed to be sold to

non-privileged person with exemption from payment of Excise Duty, but this will be decided

on the principle of reciprocity.

11. All Diplomatic missions are expected to respect local traffic laws. Diplomatic cars can also

be fined for traffic offences of red light jumping, dangerous driving, unauthorized parking

etc. In case of drunken driving, the diplomatic vehicles could be stopped and the driver

prevented from driving further to avoid causing any accident under the influence of alcohol.

12. All cases of accidents involving vehicles of Diplomatic Missions/Posts should be reported to

the nearest Police Station and to the Protocol Officer-III of the Ministry of External Affairs,

Govt. of India giving full details of the incident and also indicating name/rank of owner as

well as name/rank of user of the vehicle at the time accident. It may be noted that under

Vienna Convention -1961, of diplomatic relations, the immunity of members of the

Administrative and Technical staff of the Diplomatic Missions from civil and administrative

jurisdiction does not extend to acts performed outside the course of their duties.

PROCEDURE FOR REGISTRATION

Applications for registration of imported or locally purchased vehicles need to be submitted

within 30 days of import/purchase. Vehicles without proper registration mark and with “AF”

numbers plates is in violation of local laws.

a) No motor vehicle can ply on roads in India without a valid registration with the authority

concerned. Procedure for Registration is as follows:

Application on Form No.19 (Annexure X), in quadruplicate, to be submitted within 30

days of purchase/import/acquisition to Protocol Special Section of MEA, and to the

Protocol Department of the State Govt., as applicable for those Diplomats/Officials

located outside Delhi.

b) After due authorization and assignment of a registration mark (CD/CC/UN) and a

number, the Form No.19, after attestation of MEA will be submitted to the respective

Vehicle Registration Authority. The vehicle will be produced before registration

authority as may be required.

c) The Registration Authority shall register the vehicle under the assigned mark and

number and issue a certificate, copy of which must be available in the vehicle at all

time.

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PRE-REQUISITES FOR REGISTRATION

1. The vehicle to be registered should be RIGHT HAND DRIVE, have valid insurance and should conform to emission norms (EURO-IV BHARAT STAGE IV OR ABOVE )

a) Insurance against third party risks: By law it is incumbent on every individual

possessing/driving/owning a motor vehicle to insure him against any liability that may

arise from death of or body injury to any person caused by the use of a vehicle in a

public place. The Embassy should ensure that their members having vehicles are at all

times in possession of valid insurance policies against third party risks and to be

renewed regularly and under no circumstances allowed to lapse.

b) Insurance for Customs duty: In the event of loss/accident/damage of vehicles imported

duty free, pro-rata (proportionate) customs duty has to be paid by the privileged

person/organization on the amount of insurance claim. The members in their own

interest should include in the value the customs duty as also the c.i.f. value of the

vehicle.

c) Emission Control Norms: Only those non-commercial vehicles which conform to Euro-IV

or higher norms of emission, confirmed from the manufacturer of vehicle, can be

registered in the National Capital Territory of Delhi. This restriction does not apply to

non-commercial vehicles on CNG.

2. USE OF DIPLOMATIC/UN NUMBER PLATES.

It shall be the duty of each mission and its entitled members to avoid and check any

unauthorized use of CD numbers allotted to their vehicles. Following guidelines are to be

noted:

a) Exhibition of Registration Mark: Registration Marks/Numbers of Vehicles of the Embassy and diplomats are to be

displayed in white on plates with a deep blue back ground, in English.

b) ‘A/F’ Number Plates:

Vehicles without proper registration number and with ‘A/F’ number plates is in

violation of local laws. Vehicles with ‘A/F’ number plates do not enjoy privileges and

immunities and MEA does not intervene in matters relating to violations of traffic rules

with improper and un-registered number plates.

Loss of Number Plates:

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In case of theft and loss of number plates the owner shall report to the nearest police

station.

c) Transfer & Sale of motor vehicle:

The imported vehicle can be sold to a privileged person, if it is sold before four (4)

years from the date of Registration, and can be sold (to a non-privilege person, in the

open market) if the vehicle has completed (4) years, after taking prior concurrence for

sale from the Protocol Special, MEA, Government of India, on final transfer of the

diplomat/official.

The vehicle can be sold in the open market to a non-privilege person before expiry of

four years on payment of customs/excise duty forgone at the time of import/purchase.

The time limit for sale in the open market in case of locally purchased cars is three (3)

years from the date of registration. Requests for registration/transfer of imported

vehicles will be entertained by the MEA only after the Bill of Entry has been amended to

include the name of the new owner. (Form No. 29 Annexure XI and Form No 30

Annexure XII)

d) Duplicate Certificate of Registration:

If the Certificate of Registration (CR) is torn, defaced, lost or destroyed, the owner

shall apply in Form 22, enclosing the torn, defaced copy to the Registering Authority for

issue of a duplicate Certificate. For lost CR, the Police Report shall be appended with the

Application Form No.22 (Annexure XIII).

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Annexure Form 17(Application for permission to sell/ disposal of Imported Motor Vehicle)

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Annexure From 18 (Application for permission to sell/ disposal

of locally manufactured Motor Vehicles)

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Annexure Form 19 (Application for registration of motor vehicles)

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Annexure Form 29 (Transfer ownership)

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Annexure Form 30 (Transfer ownership)

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Annexure Form 22 (Application for issue Duplicate RC)