Question 1

What is the import duty rate for Passenger Cars in India?

Accepted Answer

The MFN (Most Favoured Nation) import duty rate for Passenger Cars (HS 8703) in India is 60–100% on the CIF value. 60% BCD for CIF ≤ $40,000; 100% for CIF > $40,000. IGST 28% + cess 15–22%. Total effective rate can exceed 200%.

Question 2

Is IGST charged on Passenger Cars imports to India?

Accepted Answer

Yes. India charges IGST at 18% on the CIF value plus any import duty. This applies to virtually all commercial imports.

Question 3

Are there FTA rates available for Passenger Cars in India?

Accepted Answer

India has free trade agreements with SAFTA (South Asia), India–ASEAN FTA, India–Japan CEPA, India–Korea CEPA. Check whether your origin country qualifies for a preferential rate on HS 8703.

Question 4

How is import duty calculated for Passenger Cars entering India?

Accepted Answer

Duty is calculated on the CIF value of the goods. CIF value includes the product cost, international freight, and insurance. The MFN duty of 60–100% is applied to this value. IGST (18%) is then applied on the CIF value plus duty.

India Import Duty Rate for Passenger Cars

How duty is calculated

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Passenger Cars duty rates in other markets