DGFT further tightens norms for import of cars / SUVs by tourism industry under EPCG Scheme - 11 (RE-2006) / 2004-2009 - Foreign Trade Policy

DGFT further tightens norms for import of cars / SUVs by tourism industry under EPCG Scheme NOTIFICATION NO. 11/2006, DT. 14/06/2006 S.O. (E) In exercise of powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (No.22 of 1992) read with paragraph 1.3 of the Foreign Trade Policy, 2004-09 as amended from time to time, the Central Government hereby makes the following amendments: 1. The sub paragraph of Para 5.1 after the sub paragraph "Second hand capital goods without any restriction on age may also be imported under the EPCG scheme" of Para 5.1 will be amended to read as follows: "However, import of motor cars, sports utility vehicles/all purpose vehicles shall be allowed only to hotels, travel agents, tour operators or tour transport operators and companies owning/operating golf resorts subject to the condition that : (i) the total foreign exchange earning from the hotel, travel tourism and golf tourism sectors in the current and preceding three licensing years is Rs 1.5 crores or more. (ii) the 'duty saved' amount on all EPCG Authorisations issued in a licensing year for import of motor cars, sports utility vehicles/all purpose vehicles shall not exceed 50% of the average foreign exchange earnings from the hotel, travel tourism and golf tourism sectors in the preceding three licensing years. (iii) the vehicles imported under this scheme shall be registered either as a tourist vehicle or shall have an appropriate registration specific to a particular state enabling the vehicle to be used for tourist purpose. A copy of the Registration certificate should be submitted to the concerned Licensing Authority as a confirmation of the vehicle having been imported and capital good installed. However, the parts of motor cars, sports utility vehicles/ all purpose vehicles such as chassis etc. cannot be imported under the EPCG Scheme." This issues in public interest. Sd/- (K.T. Chacko) Director General of Foreign Trade And Ex-Officio Additional Secretary to the Govt. of India (Issued from File No.01/94/162/46/AM06/PC-1)