The Hindu Business Line : No homologation for high-end car imports

In the mini-Exim Policy announcement on Wednesday, import of cars having CIF value of $40,000 (approximately Rs 20 lakh) by individuals and companies will be exempt from homologation testing (testing for road-worthiness) by local agencies such as the Automotive Research Association of India (ARAI).

The benefits for importers include savings on time, as the homologation procedure is a time-consuming process taking anywhere between three and six months, and the hefty homologation fees.

Individuals/companies importing cars now only have to furnish a `type approval' certificate from the country of origin.

Homologation had become a hot issue in the past few months, with the Government having received several representations in this regard from high-profile individuals, including Sachin Tendulkar who sought an exemption for the import of a Ferrari, as well as corporate houses.

The easing of the homologation norms will also benefit companies, such as Bentley and Porsche, which do not have operations in India but are setting up dealerships in the country.

In addition, in the policy announced today, the Government has also simplified norms for importing cars.

These include setting up of two new customs ports - ICD, Tughlakabad and Delhi Air Cargo - for import of new vehicles.

Previously, import of new vehicles was only permitted through Customs ports at Nhava Sheva, Kolkata and Chennai.

Also, individuals coming to India for permanent settlement after two years of continuous stay abroad can bring in a car provided the vehicle has been in their possession for at least one year abroad. This now ensures that individuals coming to India do not bring in an absolutely new car.

More Stories on : Exim Policy | Standards & Benchmarks | Cars

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