The Hindu Business Line : Changes in policy on import of select vehicles

New Delhi, Jan. 4 Foreign automobile makers can now export vehicles to India from places other than their country of manufacture. This is now possible consequent to the Commerce Ministry’s move to change the import policy on new vehicles.

However, this facility would be available only for import of new vehicles having a free on board (f.o.b.) value of $40,000 or more and engine capacity of more than 3,000cc for petrol run vehicles and more than 2,500cc for diesel-run vehicles.

Prior to the latest policy change, vehicles could be imported only from the country of manufacture.

This stipulation was introduced in the Exim Policy for 2001-02.

Trade experts point out that the latest policy change would help automobile manufacturers in landlocked countries. Earlier, they could not export to India on account of the restriction that imports to India can happen only from the country of manufacture. The latest move is also likely to even the playing field between foreign and domestic car manufacturers to some extent.

Kochi on list

Meanwhile, the Directorate-General of Foreign Trade (DGFT) has now added Kochi to the list of permissible customs ports through which new vehicles could be imported into the country.

Hitherto, import of new vehicles were permitted only through the customs port of Nhava Sheva, Kolkata, Chennai, ICD Tughlakabad, Delhi Air Cargo and Mumbai Port.

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