Rule 4A - Permission for the sale or disposal of motor vehicles - Foreign Privileged Persons (Regulation of Customs Privileges) Rules, 1957

4A. Permission for the sale or disposal of motor vehicles. — (1) No privileged person shall sell or otherwise dispose of any motor vehicle in respect of which exemption from customs duty was given at the time of its importation or clearance from bond except in accordance with sub-rule (2). [(2) Any privileged person may — (a) sell or otherwise dispose of any motor vehicle referred to in sub-rule (1) to another privileged person, with the permission of Central Board of Excise and Customs through the Ministry of External Affairs; (b) re-export the motor vehicle, with the permission of the Ministry of External Affairs; (c) sell or otherwise dispose of the motor vehicle to any non-privileged person, with the permission of Central Board of Excise and Customs through the Ministry of External Affairs, on payment of appropriate customs duty, on expiry of three years from the date on which such motor vehicle was imported : Provided that a privileged person, on his transfer out of India, may sell or otherwise dispose of a motor vehicle, which was imported within one year of his posting in India, to a non-privileged person prior to expiry of above-said period of three years from the date on which such motor vehicle was imported; (d) sell or otherwise dispose of an accidented/totally damaged motor vehicle, with the permission of Central Board of Excise and Customs, to the Insurance Company with whom the motor vehicle was insured without prejudice to his rights to sell or otherwise dispose of the motor vehicle in terms of clauses (a) and (b) : Provided that in case the insurance company declines to accept the offer for sale of the motor vehicle, the motor vehicle, with the permission of Central Board of Excise and Customs, may be sold to the Metal Scrap Trading Corporation or any other suitable disposal agency for scrapping.] [(3) Every application for sale or disposal otherwise of a motor vehicle to another privileged person or, as the case may be, to a non-privileged person under clauses (a) and (c) of sub-rule (2) respectively or sale or disposal of an accidented or totally damaged vehicle under clause (d) of sub-rule (2), shall be made to the Ministry of External Affairs, in the Form prescribed by the Ministry of External Affairs for the purpose, and that Ministry shall remit the application to the Central Board of Excise and Customs.] [(4) Any special purpose vehicle such as communication vehicle or armoured vehicle may only be; (a) sold to another privileged person; or (b) re-exported; or (c) surrendered to the nearest Custom House, for scrapping or authorising a suitable Indian agency for scrapping and the sale proceeds, of scrap so obtained, if any, shall be reimbursed to the privileged person after deducting the duty leviable for such vehicle.]