India Import Duty Rate for Used & Second-Hand Cars
HS 8703 · Used motor vehicles for transport of persons
India MFN Import Duty Rate
Live125%
125% BCD on used/reconditioned cars. IGST 28% + cess. Virtually prohibitive — India restricts used car imports severely.
How duty is calculated
CIF value
Product cost + international freight + insurance
Import duty (125%)
Applied to CIF value. EU, UK, and most countries use CIF.
IGST (18%)
Applied to CIF value + duty. Collected at customs.
Use our Landed Cost Calculator to compute the full cost including freight, brokerage, and last-mile delivery.
Worked example: used & second-hand cars worth US$10,000
A commercial shipment invoiced at US$10,000 with US$900 of international freight and insurance. India charges duty on the CIF value (goods + freight + insurance), so the duty base is US$10,900. Customs converts the amount to INR at the official exchange rate on the day of import.
| Charge | At 125% |
|---|---|
| Import duty | $13,625 |
| Social Welfare Surcharge (10% of duty) | $1,363 |
| IGST (18%) | $4,660 |
| Total paid at the border | $19,647 |
IGST is usually recoverable for a registered business, so the cost that stays with you is the duty and levies. Excise, anti-dumping duties and broker fees are not included.
Classifying used & second-hand cars correctly
Used cars share heading 8703 with new ones; the age, engine size and fuel type of the vehicle decide the subheading and, in many countries, the excise.
- Many countries cap vehicle age (Kenya eight years, several others five) or ban used imports outright
- Customs often values used cars from official price guides rather than the invoice
- Right-hand-drive vehicles are banned for registration in some left-hand-drive markets
Compliance. Expect a pre-shipment roadworthiness or radiation inspection (e.g. JEVIC or QISJ for cars from Japan) and deregistration papers from the country of export.
Importing into India: what you need
The Central Board of Indirect Taxes and Customs (CBIC) assesses duty through the ICEGATE portal; Basic Customs Duty rates are in the First Schedule to the Customs Tariff Act, 1975.
Registration. An Importer-Exporter Code (IEC) from the DGFT and GST registration to claim input credit on IGST.
Low-value shipments. India has no general de minimis for commercial goods. Courier imports under the Courier Imports Regulations have value caps and the full duty stack applies.
Documents customs will ask for
- Bill of Entry (filed on ICEGATE)
- Commercial invoice and packing list
- Bill of lading or air waybill
- Certificate of origin for FTA rates (with CAROTAR 2020 origin information)
- BIS registration for electronics and other items under compulsory certification
Charges on top of duty
- Social Welfare Surcharge: 10% of Basic Customs Duty
- IGST at the GST rate of the goods on value + BCD + SWS
- Agriculture Infrastructure and Development Cess on some goods
- Anti-dumping and safeguard duties
Watch out. Under CAROTAR 2020 the importer must hold origin information when claiming an FTA rate — a certificate alone is not enough if customs asks.
Frequently asked questions
What is the import duty rate for Used & Second-Hand Cars in India?
The MFN (Most Favoured Nation) import duty rate for Used & Second-Hand Cars (HS 8703) in India is 125% on the CIF value. 125% BCD on used/reconditioned cars. IGST 28% + cess. Virtually prohibitive — India restricts used car imports severely.
Is IGST charged on Used & Second-Hand Cars imports to India?
Yes. India charges IGST at 18% on the CIF value plus any import duty. This applies to virtually all commercial imports.
Are there FTA rates available for Used & Second-Hand Cars in India?
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.
How is import duty calculated for Used & Second-Hand Cars entering India?
Duty is calculated on the CIF value of the goods. CIF value includes the product cost, international freight, and insurance. The MFN duty of 125% is applied to this value. IGST (18%) is then applied on the duty-paid value.
Verify this rate
Duty rates change. Always verify the current rate at the official tariff schedule before importing.
Indian Customs Tariff (ITC–HS) official database ↗Quick facts