Motor Vehicles Policy

Euro-III Compliant Motorcycles Allowed for Another Year only Till 31 March 2017, Euro-IV Must Thereafter - 36-Ntfn/02.02.2016 (DINDEX Code 6536)

Kattupalli (Chennai 20) and APM Terminals, Pipavav Sea Ports Notified for Import of New Vehicles - 117-Ntfn(RE)/13.03.2015 (DINDEX Code 5752)

EU Treated as Single Market for Vehicle Import Manufacturer Declaration – 13-Ntfn(RE)/28.08.2012 (DINDEX Code 1562). See details in www.worldtradescanner.com.

LCS Petrapole/Benapole and Agartala Port Notified for Import of New Motorcycles – 46-Ntfn(RE)/23.10.2013 (DINDEX Code 4518). See details in www.worldtradescanner.com.

(1) (I) A second hand or used vehicle (including all the vehicles other than Railway or Tramway) for the purposes of this Chapter shall mean a vehicle that:-

(a) has been sold, leased or loaned prior to importation into India; or

(b) has been registered for use in any country according to the laws of that country, prior to importation into India;

(II). The import of second hand or used vehicles shall be subject to the following conditions:-

(a) The second hand or used vehicle shall not be older than three years from the date of manufacture;

(b) The second hand or used vehicle shall:

(i) have right hand steering, and controls (applicable on vehicles other than two and three wheelers);

(ii) have a speedometer indicating the speed in Kilometres; and

(iii) have photometry of the headlamps to suit “keep left” traffic.

(c) In addition to the conditions specified in (a) and (b) above, the second hand or used vehicle shall conform to the provisions of the Motor Vehicle Act, 1988 and the rules made thereunder.

(d) Whoever being an importer or dealer in motor vehicles who imports or offers to import a second hand or used vehicle into India shall,

(i) at the time of importation, submit a certificate issued by a testing agency, which the Central Government may notify in this regard, that the second hand or used vehicle being imported into India has been tested immediately before shipment for export to India and the said vehicle conforms to all the regulations specified in the Motor Vehicles Act, 1988 of India and the rules made thereunder.

(ii) At the time of importation, submit a certificate issued by a testing agency, which the Central Government may notify in this regard, that the second hand or used vehicle being imported into India has been tested immediately before shipment for export to India and the said vehicle conforms to the original homologation certificate issued at the time of manufacture.

(iii) On arrival at the Indian port but before clearance for home consumption, submit the vehicle for testing by the Vehicle Research and Development Establishment, Ahmednagar of the Ministry of Defence of the Government of India or Automotive research Association of India, Pune or Central Farm Machinery Training and Testing Institute, Budni, Madhya Pradesh for tractors, and such other agencies as may be specified by the Central Government, for granting a certificate by that agency as to the compliance of the provisions of the Motor Vehicles Act, 1988 and any rules made thereunder.

(iv) Import of these vehicles shall be allowed only through the customs port at Mumbai.

(e) The second hand or used vehicles imported into India should have a minimum roadworthiness for a period of 5 years from the date of importation into India with assurance for providing service facilities within the country during the five year period. For this purpose, the importer shall, at the time of importation, submit a declaration indicating the period of roadworthiness in respect of every individual vehicle being imported, supported by a certificate issued by any of the testing agencies, which the Central Government may notify in this regard.

(III) Cars manufactured prior to 1^stJanuary, 1950 are free for import by Actual Users. Policy Condition (I) and (II) above shall not be applicable for these cars. However, such of the cars that would be plying on public roads will continue to be subject to Central Motor Vehicles Act, 1988 and Rules, 1989.[Clause 2(III) Inserted by 05-Ntfn(RE)/18.04.2013].

(2) (I) A new imported vehicle (including all the vehicles other than Railway or Tramway) for the purposes of this Chapter shall mean a vehicle that:-

(a) has not been manufactured/assembled in India; and

(b) has not been sold, leased or loaned prior to importation into India; or

(c) has not been registered for use in any country according to the laws of that country, prior to importation into India.

(II) The import of new vehicles shall be subject to the following conditions:

a. The new vehicle shall-

(i) have a speedometer indicating the speed in Kilometers per hour;

(ii) have right hand steering, and controls (applicable on vehicles other than two and three wheelers);

(iii) have photometry of the headlamps to suit “keep-left” traffic; and

(iv) be imported from the country of manufacture. The country of manufacture will also mean a Single Market like the European Union (EU).[Amended by 13-Ntfn(RE)/28.08.2012]

b. In addition to the conditions specified in (a) above, the new vehicle shall conform to the provisions of the Motor Vehicles Act, 1988 and the rules made thereunder, as applicable, on the date of import.

c. Whoever being an importer or dealer in motor vehicles who imports or offers to import a new vehicle into India shall,

(i) at the time of importation, have valid certificate of compliance as per the provisions of rule 126 of Central Motor Vehicle Rules(CMVR), 1989, for the vehicle model being imported, issued by any of the testing agencies, specified in the said rule;

(ii) be responsible for all the provisions assigned to the manufacturer as per Rules 122 & 138 of CMVR, 1989 and for issuing Form 22, as per provisions of CMVR, 1989; and

(iii) give an undertaking in writing that the proof of compliance to conformity of production as per rule 126A of CMVR shall be submitted within six months of the imports. In case of failure to do so, no further import of new vehicle of that model shall be allowed thereafter.

d. The import of new vehicles shall be permitted only through the following Customs ports:

Seaports- (i) Nhava Sheva, (ii) Mumbai, (iii) Kolkata, (iv) Chennai, (v) Ennore, (vi) Cochin, (vii) Kattupalli, (viii) APM Terminals Pipavav;

Airports- (ix) Mumbai Air Cargo Complex, (x) Delhi Air Cargo, (xi) Chennai Airport; and

ICDs - (xii) Telegaon Pune, (xiii) Tughlakabad & (xiv) Faridabad.

In addition, import of new motor cycles is also permitted through LCS, Benapole/Petrapole and LCS, Agartala. [Amended by 06-Ntfn(RE)/18.04.2013; 46-Ntfn(RE)/23.10.2013; 117-Ntfn(RE)/13.03.2015]

e. The provisions of this notification will not apply to the imports of new vehicles-

(i) for the purpose of certification as per para c(i) above;

(ii) for the purpose of defence requirements;

f. The above mentioned provisions will also not apply to the import of new vehicles for R & D purpose by vehicle manufacturers and auto component manufacturers. However, the vehicles imported by both these categories for R & D will not be registered under the CMVR Rules in the country and will not ply on Indian roads. The customs will make necessary endorsement at the time of clearance of these vehicles.

g. In case the country of manufacture is a land locked country and the shipment takes place from another country, the vehicles would deemed to have been exported from the country of manufacture provided there are supporting documents to track the vehicles from the country of manufacture to the Port of Landing and from there, to the Port of Destination.

(3) (I) The conditions at Sl. Nos. 1 & 2 above shall not be applicable on import of passenger cars/jeeps/multi utility vehicles etc. on payment of full Customs duty by the following categories of importers:

(a) Individuals coming to India for permanent settlement after two years continuous stay abroad provided the car has been in the possession of the individual for a period of minimum one year abroad.

(b) Resident Indians presented with a car as an award in any international event/match/competition;

(c) Legal heirs/successors of deceased relatives residing abroad;

(d) Physically handicapped persons;

(e) Companies incorporated in India having foreign equity participation;

(f) Branches/offices of foreign firms;

(g) Charitable/Missionary/Religious institutions registered as per the law relating to the registration of the societies or trusts or otherwise approved by the Central or State Government, subject to the condition that the importer is an established institution and is functioning for the common benefit of the community, and subject further to production of necessary clearance under the Foreign Contribution (Regulation) Act, 1976.

(h) Honorary Consuls of foreign countries on the recommendations of the Ministry of External Affairs, Government of India.

(i) Journalists/Correspondents of foreign news agencies having accreditation certificate with the Press Information Bureau, Ministry of Information and Broadcasting, Govt. of India.

However, these imports shall be subject to the condition that, the vehicle should have right hand steering and controls (applicable on vehicles other than two and three wheelers).

(II) All the above categories shall be entitled to import only one vehicle except categories (e) and (f), which shall be entitled to import maximum of three vehicles. Persons in category (d) shall be entitled to import only specially designed vehicles suitable for use by handicapped. All such imports shall carry a “NO SALE” condition of two years which shall be endorsed by the Customs authorities on the passport/ registration documents at the time of import and by the Regional Transport Authorities when such vehicles are presented for registration in India. The DGFT may, however, permit relaxation of these conditions or imports by any other category not listed above in special circumstances.

(III) All bonds/ bank guarantees executed by importers of cars/two wheelers etc. prior to 31.03.97, where the vehicle has not been transferred, shall be deemed to have been discharged with effect from 31.03.2000 (from the date of issuance of public notice no. 3(RE-2000)/97-02.

(4) The import of vehicles (as classified under this Chapter) by Foreign Diplomats and Other Privileged Persons in this category, who are exempt from payment of customs duty, shall be exempt from the conditions specified at Sl. No. 1 & 2 above. Such imported vehicles shall be disposed off in the manner specified in the Foreign Privileged Persons (Regulations of Customs Privileges) Rules, 1957, as amended from time to time.

(5) The import of vehicles namely, Digital Satellite News Gathering Vans (DSNG van)/ Outdoor Broadcasting Vans (OB Van), as classified in this Chapter, fitted with equipments for telecasting shall be exempted from the conditions specified at Sl. No. 1 & 2 above. However, these imports shall be subject to the condition that the vehicle should have right hand steering and controls (applicable on vehicles other than two and three wheelers).

(6) The import of vehicles namely, ATVs (All Terrain Vehicles) which are specifically designed for off-the-road sports, recreation and some farm usage and do not require registration under provisions of the CMVR, shall be exempted from the conditions mentioned at Sl. No. 1 and 2 above.

(7) Import of new vehicles having an FOB value of US $ 40,000 or more and engine capacity of more than 3000cc for petrol run vehicle and more than 2500cc for diesel run vehicles by (a) Individuals, (b) Companies and firms or (c) OEMs (Original Equipment Manufacturers- who have manufacturing and service network in India) will be exempt from the conditions at Sl. No. 2(II)(a)(iv) and 2(II)(c) above. However, at the time of Customs clearance, a Type Approval Certificate / COP of an international accredited agency from the country of origin or an EC Type Approval Certificate / Certificate of COP, of an accredited agency from any member state of EU, including a notarized English translation thereof, shall be furnished. This Type Approval shall stipulate that the vehicle to be imported complies with all the ECE Regulations for the complete vehicle. The accredited agencies have been notified vide Policy Circular No. 12 (RE- 2013)/2009-14 dated 15/01/2014

(8) Import of new and second hand vehicles (not older than three years from the date of manufacture) shall be exempt from the condition at Sl. No. 2(II) (c) above only for jobbing and subsequent re-export in terms of Customs Notification No. 32/97 CUS (N.T.) dated 01.04.1997.

(9) Import of new motorcycles with engine capacity of 800 cc or more, by all categories of importers, including: (a) Individuals; (b) Companies and firm; or (c) OEMs (Original Equipment Manufacturers- who have manufacturing and service network in India) will be exempt from the conditions at Sl. No. (2) (II) (c) above. However, at the time of Customs clearance, an EC Type Approval Certificate / Certificate of COP, of an accredited agency from any member state of EU, including a notarized English translation thereof, shall be furnished. This Type Approval shall stipulate that the vehicle to be imported meets the technical requirements of EU Directive 168/2013/EU of the European Parliament and Council. Such imported motorcycles shall meet the EURO IV emission norms as specified in the said regulation with test procedure as per Commission Delegated Regulation (EU) No.134/2014. The accredited agencies have been notified vide Policy Circular No. 12 (RE-2013)/2009-14 dated 15/01/2014.

Also all imported motorcycles which meet the EURO III emission norms as defined in EU Directive 2003/77/EC will continue to be exempted from the conditions at Sl. No.(2) (II) (c) above, until 31st March, 2017. However, at the time of Customs clearance, an EC Type Approval Certificate / Certificate of COP, of an accredited agency from any member state of EU, including notarized English translation thereof, shall be furnished. This Type Approval shall stipulate that the vehicle to be imported meets the technical requirements of all relevant separate directives, as last amended and as listed in EU Directive 2002/24/EC.

(10) The import of customized Cars/Motorcycles and parts thereof required for the race events shall be subject to the following conditions:-

(a) The conditions at Sl. Nos. 1 & 2 above shall not be applicable on import of customized Cars/Motorcycles and parts thereof.

(b)At the time of Customs clearance, a Type Approval Certificate/ COP of an international accredited agency from the country of origin will not be required.

(c)A certificate from Nodal Agency (to be nominated by Govt. of India) indicating the details of the vehicle shall be required at the time of Customs clearance. Import shall be permitted only through such Customs ports as per Policy Condition (1) (II) (d) (iv).

(d) These vehicles will be used only for the purpose for which these are imported. Vehicles imported under this provision will not be registered CMV Act/ Rules; nor be alienated/ sold to any individual/organization/institution etc. anywhere in India. These vehicles shall not ply on public roads and can only be used within the enclosed premises with requisite safety precautions and will not be engaged in any sort of commercial activities.

(e)The importer shall be required to execute a Bond with Customs with adequate security/ surety to re-export the vehicle(s) within 30 days of the completion of the event or within such extended period as the appropriate officer may allow after being shown a reasonable cause.”

[Ref: DGFT Notification No. 36 dated 17^thJanuary 2017]

Type Approval Certificates for Vehicles, Eqpts and Parts Accepted from 51 Listed Agencies

[DGFT Policy Circular No. 12 dated 15^th January 2014]

Subject: Type Approval Certificate issuing agencies under Policy Condition number 7 and 9 of Chapter 87 of ITC(HS) 2012

Reference is invited to the policy conditions No.7 & 9 of Chapter 87 of ITC (HS), 2012 Schedule 1 (Import Policy) and to the Policy Circular No. 26 (RE-2003)/2002-2007 dated 9^th February, 2004. The Type Approval Certificates may be accepted from countries as enlisted at Annexure-A, which are Contracting Parties to the 1958 Agreement, formally titled “Agreement concerning the adoption of uniform technical prescriptions for wheeled vehicles, equipment and parts which can be fitted and/or be used on wheeled vehicles and the conditions for reciprocal recognition of approvals granted on the basis of these prescriptions”.

2.The list of International accredited agencies for issuance of Type Approval Certificate / COP as notified by United Nations Economic and Social Council dated 15^th February, 2013 is at Annexure - I (page 318-365) of the document which can be accessed at: http://www.unece.org.fileadmin/DAM/trans/main/wp29/wp29regs/updates/ECE-TRANS-WP.29-343-Rev.21.pdf. 

This issues with the approval of the DGFT.

Click here for List of contracting Parties to the 1958 Agreement (DINDEX/4784). See details in www.worldtradescanner.com]

Customs Clearance of Motor Vehicles – Full Examination and Full Specifications on B/E are must

The following Public Notice was issued by the Commissioner of Customs (Import), Nhava Sheva on 16 July 2008.

F. No. S/26-Misc-83/08 VB

55-PN/08 Attention of all the manufacturer-importers of
16.07.2008 motor vehicles, Custom House Agent, members
of Trade and all concerned is invited to the revised examination procedure of Motor Vehicles at JNCH as detailed under :-

1. A number of representations have been received from the manufacturer– importers of new motor cars, classifiable under CTH 87.03 (except 8703.10) regarding the difficulties being faced by them in examination of vehicles of same model, imported in bulk vide a single Bill of Entry.

2. At present all imported vehicles, whether new or old, are subjected to 100% examination to check the Chassis no./ Engine no. and also to ascertain LHD/RHD controls, photometry, speedometer in kms etc, as required under the provisions of Import Licensing Notes appended to Chapter 87 ITC (HS) classification, and Central Motor Vehicle Rules 1989.

3. The matter regarding examination of new motor cars/vehicles imported by manufacturer-importer and their customs clearance has been examined and it has been decided that the following procedure with respect to their examination shall hereforth be followed.

i) The manufacturer-importers shall declare the complete details of the new cars like Engine No., Chassis No., Model, Year of Manufacture, ARAI Certificate/Type Approval Certificate No., and Capacity of Cylinder (CC), etc in the description of each individual vehicle on the Bill of Entry / Packing List.

ii) The manufacturer-importer shall submit self attested Type Approval Certificates, along with an English version of the same, if it is in any other foreign language, duly notarized.

iii) The facility of examination of 5% of total containers (minimum one container) after random selection shall be extended only to manufacturer-importers of new vehicles covered under a particular Bill of Entry / Packing List.

4) This Public Notice comes into effect immediately and until further orders. Any difficulty faced by the trade in implementation of this Public Notice may be brought to the notice of undersigned.