How to Import and Drive Your UAE-Registered Car in India (Duty-Free)

For many UAE residents and expatriates, the idea of driving their own UAE-registered car in India — without paying the prohibitive import duties that apply to permanent car imports — may sound unlikely. Yet, there is a legally accepted pathway, primarily via the internationally recognised Carnet de Passage (CPD) system, which allows temporary importation of a vehicle without full import tax.

Why this route exists

India’s import duties on cars are extremely high: for vehicles with CIF (cost, insurance, freight) value over US$40,000, duty can hit 100% or more; for below that threshold, around 60% or more. The CPD route allows temporary importation without paying full duty.

Step-by-Step: How it works

Obtain a Carnet de Passage (CPD) in the UAE.

Ship the car to India via CPD-compliant shipping companies (ports: JNPT Mumbai, Kochi). Estimated cost from Dubai ~AED 14,500.

Customs clearance on arrival in India with CPD documentation.

Pay road tax / state fees (~₹65,000 for 12 months).

Use period & re-export: Vehicle must exit India within authorised time (usually six months, extendable).

Important conditions & caveats

Temporary import only; cannot sell or permanently register in India.

Vehicle must meet Indian road-transport regulations.

Overstay triggers penalties.

Additional costs for shipping, insurance, and compliance.

Who might benefit

UAE residents staying temporarily in India.

Enthusiasts of rare models.

Short-term corporate relocations.

Who might not benefit

Those seeking permanent import.

Left-hand-drive vehicles or non-compliant vehicles.

Long-term residents needing permanent registration.