Import of Classic Cars is now Legal

The announcement has been made by the government on the removal of ban on import of cars manufactured before 1950 into the country. This has been an excellent news for classic car fans. We all know that the government currently doesn't allow importing used vehicles in India, if the vehicles are over three years old. This step was taken to prevent discarding of foreign manufactured used cars in the Indian market.

However, some of the facts about the new rules are still uncertain; such as whether the cars will be restricted to right hand drive or if left hand-drive cars will be allowed. Talking about the emission norms, the cars to be imported will have to confirm to the MOT norms of the country of source. Though, the motorbikes are not included in the new rules, the fanatics are advancing to have two wheelers included under the rule.

How import duty will be calculated is still not clear, although a flat duty structure could be applied on imports to avoid under-invoicing of the vehicle's value. The import ban on classic and vintage cars had heavily restricted, making prices skywards over the last decade. After new rules, we expect that the prices of classic cars to reach more realistic levels, once collectors start importing them in decent volumes.

The president of the 'Vintage and Classic Club of India' Nitin Dosa welcomes the removal of ban on classic cars imports as a positive move. But he has some issues regarding how the cars will be evaluated for the amount of duty they will carry. Additionally, it is not clear whether left-hand drive cars will be imported or not. If left-hand drive cars will be excluded under the new rules, then it would restrict the import of fine American vintage cars such as Cadillacs and Studebakers.