Cars and Vehicles Import Policy - DGFT - 03 PN/1997-02

Cars and Vehicles Import Policy Public Notice No.3 PN/1997-02 dated the 31st March, 1997 Sub: Export and Import Policy for April, 1997 -March, 2002 -Policy for Import of car and automobile vehicles. In exercise of the powers conferred under Paragraph 4.11 of the Export and Import Policy, 1997- 2002 and in supersession of Public Notice No. 202/(PN)/92-97 dated the 30.3.1994 and as amended from time to time, Director General of Foreign Trade hereby notifies the procedure for the import of car and automobile vehicles, effective from 1.4.1997, as under: - Passenger cars and automobile vehicles are in the restricted category and their import is not permitted except against a licence or in accordance with a Public Notice issued in this behalf. However, cars/automobile vehicles can be imported by certain eligible categories specified below subject to the following conditions: - 2. Import of passenger cars and. automobile vehicles may be made without a licence by the categories of eligible importers specified below subject to the following conditions : --- the payment for the vehicle is made abroad and such payment does not involve, directly or indirectly, any remittances Of foreign exchange from India except in the case of category 'I' Importers; the payment of the customs duty is made in foreign exchange, unless expressly exempted in the case of any particular category of importer in this Public Notice. the conditions specified against each category of eligible importers in this Public Notice are fulfilled; and, . in the case of those importers returning to India for permanent settlement, a declaration to that effect is given to the Customs at the time of the clearance of the car. Indian nationals or foreign nationals of Indian origin coming to India for permanent settlement: Import of one passenger car with engine size not exceeding four cylinders and not exceeding 1600 c.c. is permitted, whether the car is new or old. However, if engine size exceeds four cylinders or 1600 c.c., the car should have been in the use of the importer for more than a year prior to his return to India. The importer has stayed abroad continuously for a period of at least two years prior to his coming to India for permanent settlement. The payment for the car is made abroad before his return to India. The car should be imported into India within six months of the 'arrival of the importer in India for permanent settlement If the importer transfers his residence out of India again, he will be entitled to import another car under this Policy oly after a minimum period of five years from the date of importation of the previous vehicle. Customs Authorities shall endorse on the passport of the importer "Transfer of residence with Car" at the time of Clearance of the car. The importer is free to sell the car in the open market after his return to India without any restriction as regards the period of retention of the vehicle. Import of one two-wheeler (motor-cycle, scooter etc.,) in place of car is also permitted whether the same is new or old, subject to fulfilment of the above conditions. Import of any other type of automobile vehicle may be permitted by the Director General of Foreign Trade on merits. Foreign Nationals (including persons of Indian origin) married to Indian Nationals Import of one passenger car is permitted, whether the car is new or old. The importer, namely, the foreign national (including person of Indian origin), is coming to India for permanent settlement. The car has been gifted to the importer by the parents within one year of the marriage. The importer is free to sell the car in the open market after his or her return to India without any restriction. Foreign nationals working in India The contract period for the employment, assignment or stay of the importer in India shall not be less than one year.' Import of one vehicle is permitted. Foreign national working in India shall also be permitted to import his own used vehicle, which was in his possession abroad. Subsequent import of a vehicle may be made after the disposal of the previous vehicle in accordance with the condition mentioned in para 3 below, provided there is a minimum period of five years between two successive imports of a vehicle. Brnches/offices of foreign firms, companies and institutions (corporate or otherwise) established in India. Branches/offices of foreign firms, companies and institutions (corporate or otherwise) established in India may import upto three vehicles. Subsequent import of a vehicle may be made after the disposal of the previous vehicle in accordance with the condition mentioned para 3 below, provided there is a minimum period of five years between two successive imports of a vehicle. Companies incorporated in India having either foreign equity participation or NRI equity participation in them backed up by RBI's approval amounting to not less than US$ 2,00,000 The Indian company may import upto three vehicles. Import of used cars is also permitted by the Indian Company provided these were registered in the name of the foreign equity holding company/NRI equity holder abroad and in their possession prior to import. The payment for the vehicle as well as the payment of the customs duty in foreign exchange are made by the foreign company/NRI holding equity in the Indian company. Subsequent import of a vehicle may be made after the disposal of the previous vehicle in accordance with the condition mentioned in para 3 below, provided there is a minimum period of five years between two successive imports of a vehicle. Accredited journalists/correspondents of foreign news agencies The importer should have the Accredition Certificate from the "Press Information Bureau, Ministry of Information Broadcasting, Government of India. Import of one vehicle is permitted. Subsequent import of a vehicle may be made after the disposal of the previous vehicle in accordance with the condition mentioned in para 3 below, provided there is a minimum period of five years between two successive imports of the vehicle. . Indian firms executing contracts abroad Import of vehicles may be made after substantial completion of the project/winding up of the foreign office, subject to the production of a letter of approval from the Reserve Bank of India showing the permission of the Reserve Bank of India for the purchase of the vehicles abroad for the execution of the contract. The vehicle should have been in the use of the firm/company abroad for at least one year. The condition regarding no sale/disposal as stipulated in para 3 below shall be applicable. Charitable and Missionary Institutions. Import of vehicles such as utility vans, ambulances, station wagons, jeeps, mini-buses (excluding passenger cars) is permitted as gift, 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. Payment of customs duty may be made in Indian Rupees The condition regarding no sale/disposal as stipulated in para 3 below shall be applicable. Physically handicapped persons. Import of cars specially designed for the physically handicapped may be permitted on the basis of a certificate in the proforma as prescribed in Annexure-1 appended to this Public Notice, from the State Civil Surgeon or Head of the concerned wing in the Government Hospital, certifying that ttle importer has any of the following disabilities and the percentage of impairment is not less than 50% of the total body as per Mebride Scale: Unilateral/bilateral amputees of the lower limbs excluding below knee unilateral amputees. Unilateral below elbow or above elbow amputees. Traumatic/permnent paralysis which cannot be surgically or medically treated. (IV) Permanent paralysis of one upper limb or both lower limbs due to any reason or hemiparesis. Grossly deformed limbs due to trauma arthritis or congenital but having atleast one upper limb normal. If the car is a gift, confirmatory letter from donor. in original, which should also indicate the donor's relationship with the donee. Satisfactory evidence clearly justifying the need and essential1ty for import of a self-driven car by the applicant. Import of only one car upto 1600 CC engine capacity will be a1iowed. Car shall not be allowed to be sold or otherwise disposed of or possession parted with, or pledged, mortgaged or hypothecated, at any time. However in special circumstances, and for valid reasons, and subject to such conditions as may be laid dovvn, the Director General of foreign Trade, New Delhi, may on request relax this condition. The importer shall produce his driving licence within 6 months from the date of import, to the authority with whom 'No. Sale Bond' is executed. Payment for the yehicle may be remitted from India in Indian Rupees and the Customs duty may be paid in Indian Rupees. Honorary Consuls of Foreign Governments: Import of one passenger car is permitted on the recommendation of the Ministry of External Affairs provided the cost of the car, including freight and insurance, is borne by the foreign Government and the customs duty is paid by the applicant in Indian Rupees at the time of import. Import of a second car will be permitted after a period of five years from the date of importation of the first car subject to the condition of re-export of the previous vehicle or its sale to the State Trading Corporation of India or an eligible importer covered by anyone of the categories C, D, E and F mentioned in this Pub1ic Notice. 3. No sale condition in respect of Category C,D,E, F, G and H importers. There shall be a no -sale period of five years from the date of clearance of vehicle in respect of Categories C, D, E, F, G and H Importers. In case, the importer wants to dispose of the vehicle within no sale period of five years, it will be subject to the condition of re-export of the vehicle or sale to the State Trading Corporation of India or to an eligible importer covered by anyone of the Categories C, D, E and F mentioned in this Public Notice. No permission shall be required for the sale/transfer/disposal of the vehicle from the DGFT after the no sale period of five years. 4. On the import of the vehicle into the country, it should be registered in the name of the importer. The importer, except those covered by Categories A and B, shall execute a bond in the form as prescribed in Annexure-11 appended to this Public Notice, for an amount equal to Customs assessed c.i.f. value of the vehicle in favour of the President of India at the regional licensing office concerned of the Director General of Foreign Trade undertaking to fulfil the conditions applicable to import. The bond shall be valid for a period of five years and it may not be, supported by a bank Guarantee. 5. Resident Indians may import passenger cars and automobile vehicle without a licence/CCP provided the vehicle has been presented to them as an award in any international event/match/com- petition, on the submission of the documentary evidence to the satisfaction of the Customs authorities provided no remittance of foreign exchange is involved. Customs duty as leviable may, however, be paid in Indian Rupees. 6. The legal heirs/successors may import passenger cars and automobile vehicles belonging to their deceased relatives in foreign c9untries without a licence/CCP on submission of documentary evidence to the satisfaction of the Customs authorities provided no remittance of foreign exchange is involved. Customs duty as leviable may, however, be paid in Indian Rupees. 7. If the Importers are employees of the Central Government, State Governments or Public sector undertakings posted in Indian Embassies/High Commissions abroad or in foreign offices of Public Sector Undertakings, they may make the payment of the Customs duty in Indian Rupees. In their case, the sale of the vehicle will not be permitted for a period of two years from the date of importation. However, if they make the payment of Customs Duty in convertible foreign exchange, there will be no restriction on the sale of the imported vehicle. 8. The provisions of this Public Notice may be relaxed on merits by the Director General of Foreign Trade. Sd/- (S.B. Mohapatra) Director General of Foreign Trade Issued by: Government of India Ministry of Commerce, New Delhi (Issued from File No. IPC/4/(650)92-97) Annexure -I Proforma of medical certificate to be issued by State Civil surgeon or Head of concerned Wing in a GovernmentHospital dealing with nature and extent of disability Name of the applicant Nationality Date of Birth Exact nature of business/profession Full residential address Photograph of the importer showily the disability, duly attested by the medical certificate issuing authority. Physical condition Eye Examination 1. Vision…………………. Right eye. ………………….Left eye. 2. Specify if any colour blindness which makes him unsuitable for driving. 3. Mental condition a. Normal b. sub-normal c. any mental illness iii. Hearing . hearing in the right ear . hearing in the left ear iv. Nature of disability. State whether the applicant is suffering from any of the disabilities mentioned below: - 1. Unilateral/bilateral amputees of the lower limbs excluding below knee unilateral amputees; 2. Unilateral below elbow or above elbow amputees; 3. Traumatic/permanent paralysis which cannot be surgically or medically treated; 4. Permanent paralysis of one upper limbs or both lower limbs due to any reason or hemiparesis; and 5. Grossly deformed limbs due to trauma, arthiritis or congenital but having at least one upper limbs normal. a. If so, specify the disability out of 6(iv)(a)(1 to 5) above percentage of impairment as per Mebride Scale. 7. Type of adoption/disability gadgets recommended by the Doctor for import of car. Signature of the doctor not below the rank of Civil Surgeon alongwith Seal of the Hospital. Place: Date: