India's automotive industry is the third largest in the world by volume, creating massive demand for imported auto components. From engine parts and transmission systems to electronic control units and body panels, auto parts are imported from Germany, Japan, South Korea, China, and the United States. Understanding the spare parts import India process is essential for automotive manufacturers, dealers, and aftermarket distributors.
This guide covers the complete automobile parts import procedure, including BIS certification requirements, customs duties, documentation, and compliance obligations.
Regulatory Framework
Auto parts imports are regulated by DGFT, Customs, and BIS. Many automotive components fall under the BIS Compulsory Registration Scheme, requiring products to meet specific Indian Standards. Parts are classified under Chapters 84, 85, 87, and 40 of the Customs Tariff Act depending on the component type.
The Automotive Industry Standards (AIS) set by the Bureau of Indian Standards specify quality and safety requirements for critical automotive components. Non-compliance with these standards can result in customs rejection and penalties.
Registrations Required
An IEC from DGFT is mandatory. Apply through Patron Accounting IEC registration. ICEGATE registration and GST registration are essential. BIS certification is required for components under the Compulsory Registration Scheme.
For parts under BIS compulsory certification, the manufacturer must apply for and obtain a BIS license before the products can be imported. This process involves factory audit, product testing, and ongoing surveillance by BIS.
Step-by-Step Process
Step 1: Obtain Registrations
Secure IEC, ICEGATE, AD Code, and GST registrations. Verify BIS requirements for your specific auto parts category.
Step 2: BIS Certification
If required, the overseas manufacturer must apply for BIS certification. This involves submitting product samples for testing, undergoing factory audits, and receiving the BIS license. Processing takes 3 to 6 months.
Step 3: HS Code Classification
Classify parts accurately. Engine parts, electrical components, rubber parts, and body panels each fall under different tariff headings with varying duty rates.
Step 4: Arrange Shipment
Auto parts are shipped in standard containers with proper packaging to prevent damage. Fragile electronic components need additional protection.
Step 5: Customs Clearance
File Bill of Entry, present BIS certificates where applicable, and pay duties. Customs may inspect consignments to verify product specifications against declarations.
Documents Required
IEC, BIS certificate if applicable, commercial invoice, packing list, bill of lading, certificate of origin, product test reports, insurance, and Bill of Entry.
Duty Structure
BCD on auto parts ranges from 7.5% to 15% for most categories. Parts for electric vehicles may attract concessional duty. IGST at 18% to 28% applies depending on the component type. Social Welfare Surcharge at 10% of BCD is also levied.
India has free trade agreements that provide preferential duty rates for auto parts from certain countries. ASEAN FTA, Korea CEPA, and Japan CEPA offer reduced or zero duty on qualifying auto components.
BIS Requirements for Auto Components
Critical safety components like brake pads, safety glass, tyres, and lighting equipment require BIS certification. The certification confirms compliance with Indian automotive safety standards. Products imported without required BIS certification are liable for seizure at customs.
The BIS certification process requires the overseas manufacturer to register, submit samples for testing at BIS-approved laboratories, and undergo factory inspections. The certification is valid for a defined period and requires renewal.
Aftermarket vs OEM Import Dynamics
The auto parts import market in India has two distinct segments. Original Equipment Manufacturer (OEM) imports supply parts directly to vehicle assembly plants for new vehicle production. The aftermarket segment supplies replacement parts for vehicle maintenance and repair. Each segment has different quality requirements, pricing dynamics, and distribution channels.
OEM imports are typically managed directly by the vehicle manufacturer or through their authorized supply chain partners. These parts must meet the manufacturer's exact specifications and quality standards. Aftermarket imports are handled by independent distributors and are subject to BIS and automotive safety standards. The aftermarket segment offers higher margins but requires investment in distribution networks reaching mechanics, workshops, and retail parts stores.
Free Trade Agreement Benefits
India's free trade agreements significantly impact auto parts import economics. The ASEAN-India FTA provides preferential duty rates on auto components from countries like Thailand, Indonesia, and Vietnam, which have become major auto parts manufacturing hubs. The Korea-India CEPA and Japan-India CEPA offer similar benefits for parts from these automotive powerhouse countries.
To claim FTA preferential duties, the importer must present a valid Certificate of Origin proving the parts meet the Rules of Origin criteria, including minimum value addition in the FTA partner country. The duty savings under FTAs can be substantial, ranging from 50% to 100% reduction in BCD compared to Most Favoured Nation rates. This makes sourcing strategy and country of origin a critical commercial decision.
Counterfeit Parts and Brand Protection
The Indian aftermarket has significant issues with counterfeit auto parts that can compromise vehicle safety. Legitimate importers of branded auto parts must invest in brand protection measures including tamper-evident packaging, QR code verification systems, and working with customs authorities to intercept counterfeit shipments. The Anti-Counterfeiting Trade Agreement provides a framework for protecting intellectual property in imported goods.
Registering your trademark and product designs with Indian Customs enables them to proactively identify and detain suspected counterfeit shipments. This Intellectual Property Rights recording with customs is an important protective measure for auto parts importers dealing in branded components.
EV Components: The Next Growth Area
The transition to electric vehicles is creating new import opportunities for EV-specific components including battery cells, battery management systems, electric motors, power electronics, charging equipment, and specialized connectors. India's domestic EV component ecosystem is still developing, creating a window for imports of these high-technology components.
The government has offered concessional duty rates on several EV components to support the domestic EV manufacturing industry. Battery cells, which are the highest-value component of an electric vehicle, attract reduced BCD to make Indian EV production cost-competitive. Importers specializing in EV components can benefit from both the growing demand and favourable duty treatment.
