Introduction: Vehicle and Automobile Parts From India
In this Blog, we will discuss the export market of vehicle and automobile parts in India and the legal compliances required to export vehicle parts from India. As we all know, India is the leading producer of Vehicle as well as automobile spare parts. India is popular for selling vehicle spare parts. This blog will be informative for all export companies who want to sell their products out of India. They need to keep in mind some important legal compliances and taxes required for exporting the parts of the vehicle.
Table of Contents
- Introduction: Vehicle and Automobile Parts From India
- What Are The Requirements For Exporting Vehicles And Automobiles Parts From India?
- Procedure for Obtaining Vehicle Identification Number
- Export Duty On The Export Of Vehicle Parts In India
- Documents Required For Export Custom Clearance
- Licenses and Permissions Required for the Export of the Automotive Products
- Is exporting vehicle and automobile parts a profitable business in India?
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Varun is an Entrepreneur who recently started his own Exporting firm. So, he wants to know all the information for their company and what the compliances and certifications are required for the export of goods. Hence, this blog will be informative for his and other entrepreneurs and company owners.
What Are The Requirements For Exporting Vehicles And Automobiles Parts From India?
There are different requirements for exporting vehicle and automobile parts, We shall begin with the necessary requirements.
- Basic Requirements:- When a person is attempting to export the vehicle as well as Automobile parts they shall need to present it to the customs, at the port of exportation, They need to show the VIN (Vehicle Identification Number) which describes the vehicle and its documents in case the vehicle does not have the VIN Number then, they need to have the Product Identification Number. The exportation of the product shall not be permitted without these numbers.
- Documentation Required:- In the case of exportation of vehicle and automobile spare parts such as trucks, motorcycles, buses, etc. Original certified copies of the title and facsimiles of the original certified copy need to be submitted.
- All the documents need to submit 3 days prior to the transported vehicle.
Procedure for Obtaining Vehicle Identification Number
The VIN Number is allotted to the owner of the vehicle by the Manufacturer, it’s a 17-digit number which uses to identify the car. It is also known as the chassis number.
- Registration Certificate: Individuals need to register their vehicle at the regional transport office (RTO). RTO prints out the VIN or Chassis number on the registration certificate of your vehicle.
- Dashboard: Few car manufacturers usually print the VIN Number on the dashboard of the cars and find it on the driver's side of the car.
Export Duty On The Export Of Vehicle Parts In India
Export duty is levied on the vehicle as well as Automobile parts in India when a product is exported from India to other counties. Auto parts come under HS Codes that include the 87089900, and 90279090 codes on them. This is the toll that helps in finding out the customs and export duty that one needs to pay while exporting vehicle parts from India.
In addition to this, the export order needs to pay the tariff and taxes of Auto parts for obtaining custom clearances and help you with the different procedures relating to the export of Auto parts from India. Furthermore, it also gives information related to the export of Auto parts, rules, and regulations in India for the export of Vehicle parts.
Documents Required For Export Custom Clearance
These are the relevant documents that are needed for customs clearance while exporting goods from India.
- Custom declaration form:- This form is issued by the universal postal union (UPU) and it gives information related to the item that is being imported and exported. On the other hand, we can say that it is a legal document that allows a person to export/import the product under the given custom procedure.
- Dispatch Note:- It is the note that is filled by the exporter for the action to be taken by the customs department in case the product is undelivered or refused to be accepted due to some reason.
- Commercial Invoice:- It is issued by the exporter for the full realizable amounts of goods as per trade terms and rules.
- Customs invoice:- It is specifically needed for countries such as the USA, Canada, etc. It facilitates the goods entering the importing country at a preferential tariff rate.
- Certified Invoice:- This certification is required when the exporter certifies on the Invoice that the goods are of a particular origin or manufacturer/packaged at a particular place.
- Purchase Order/Letter of Credit:- It is a commercial document issued by a buyer to a seller which indicates the types, quantities, and agreed prices of goods and services.
- Country of Origin (COO) Certificate:- This document certifies that the goods imported in a particular country have obtained a certain export shipment. It is widely used in international trade transactions.
- Insurance certificate:- Exporter needs to have insurance that cover the cargo being shipped.
Licenses and Permissions Required for the Export of the Automotive Products
Here’s a list of licenses and permits that are required for the export of Vehicle parts from India.
- Certificate of Incorporation:- Firstly, A firm/ company needs to establish its entity as a sole or proprietorship, or partnership firm through a company formation.
- PAN Registration:- PAN card on the company/business name needs to submit for export of automotive products. It is compulsory for every exporter to obtain a PAN card in the business name.
- GST (goods and services tax) Registration:- For a person who is starting a new startup GST Registration is mandatory for them. So, for exporters, it is compulsory to obtain a GST certificate.
- IEC (Import and Export code):- It is a mandatory registration for the growth of business in the global market. This registration code is issued by the Director General of Foreign Trade (DGFT) to a business entity for Import and Export in India.
- ISO Certification:- International organization for standardization certificate is important for the export of automotive parts.
Is exporting vehicle and automobile parts a profitable business in India?
India is the leading producer of vehicle as well as Auto parts, India is the operator of auto parts and exports it to automobile manufacturers, automotive parts retailers, and auto service providers. Below mention are some points explaining why this is a profitable business.
- Increase in demand and sales: - Nowadays, Auto parts retailers are increasing and consumers sought auto repair services. Also, more are interested in the automobile industry and want to explore more products.
- Expandable business: - It is one of the businesses whose demand is very expandable not only in India but also in other countries. Moreover, the Automobile industry's reach is very high, and almost every infivusal needs a vehicle and automotive parts for their personal vehicle.
In this Blog, we talked about the Compliances/certifications required for the export of vehicle and automobile parts from India. This blog will give you information regarding the same and guide you through the procedure. If you need any help in getting the license then, feel free to contact us or you can visit our website corpseed.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.
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