The number of luxury and sports cars are increasing in India. Many of these vehicles are here on the carnet. Carnet allows you to bring foreign-registered vehicles to India but on a temporary basis. Kerala has one of the highest numbers of carnet vehicles in India. Here is Kerala MVD issuing a fine to the Dubai -registered Rolls Royce Ghost. Here’s why.
The incident happened in Kerala where a Dubai-registered Rolls Royce Ghost was stopped by Motor Vehicle Department or MVD. As per the video, the officials issued the fine because the owner of the Rolls Royce Ghost did not pay the entry duty.
The MVD has charged Rs 35,000 for the non-payment of duty in India. We are not sure about the duty amount that the authorities charge when a foreign-registered vehicle enters the Indian borders. For unregistered CBU vehicles, it is more than 100% of the value of the car.
There are various ways that the authorities use to determine the value of a registered vehicle including getting certificates from the authorities of the country where the vehicle is registered. The duty is then calculated based on that amount.
Many car enthusiasts who have homes in foreign use the carnet facility to get their vehicles to India. Most of the vehicles through carnet come from the UAE though. Even millionaires like Gautam Singhania bring their high-end exotics like the McLaren 720S and many others to India through carnet.
Owners can only bring the vehicle for a few days or weeks to the Indian soil on the carnet. However, one can always increase the validity by approaching the authorities. Carnet is basically a passport for cars and other expensive goods that can be used to transfer vehicles from one country to the other.
Fine for not clearing tax, duties and other charges
The video by MediaOne shows a group of MVD officials surrounding the Rolls Royce Ghost. Their official Maruti Suzuki Ertiga is also parked in front of the Ghost. Since the Ghost is from the UAE and is registered there, it carries the Dubai registration number. Also, the Ghost is in a left-hand drive configuration.
Bring a vehicle on carnet requires a plethora of paperwork and payment of taxes, duties and other charges as required by the country. The carnet paper is issued by the country where the car is registered and then the documents are properly checked by the authorities of the country where the car enters.
India has numerous vehicles that came here temporarily on the carnet. These vehicles do have to follow the local traffic rules and adhere to the regulations laid by the authorities.