Importing of Bus for Resort, Customs - Exim - SEZ

[MAHENDRA SINGH RAJPUROHIT]

Dear Sir/Madam,

We are interested to Import of Luxury bus for resort use only.

1.   Guide use for Import as per FTP ?
2.  What is the customs clearance formalities for the Import of Bus ?
3.  Which types of documents require for the same ?

Please help on urgent basis.

With Thanks & Regards

Mahendra Singh RAjpurohit

Posts / Replies

[Pradeep Khatri]

Option No. 1

Under served from India Scheme (if you are eligible and have SFI Scrip) you may import luxury bus for your resort without payment of duty to the extent of amount mentioned in the SFI Scrip. 

Option No.2

Under para 5.2 of the FTP Policy, you may import luxury bus for your resort and only for tourist purpose only.  For this you would have to apply to DGFT for EPCG License.

Under Concessional 3% Duty EPCG Scheme 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) total foreign exchange earning from hotel, travel & tourism and golf tourism sectors in current and preceding three licensing years is Rs. 1.5 crores or more.

(ii) ‘duty saved’ amount on all EPCG Authorizations issued in a licensing year for import of motor cars, sports utility vehicles/ all purpose vehicles shall not exceed 50% of average foreign exchange earnings from hotel, travel & tourism and golf tourism sectors in preceding three licensing years.

(iii) vehicles imported shall be so registered that the vehicle is used for tourist purpose only. A copy of the Registration certificate should be submitted to concerned RA as a confirmation of import of vehicle. However, parts of motor cars, sports utility vehicles/all purpose vehicles such as chassis etc. cannot be imported under the EPCG Scheme.

Further also check the annual supplement 2012-2013 for FTP 2009 - 2014 as issued by DGFT recently.

[MAHENDRA SINGH RAJPUROHIT]

Thank you very much Pradeep Sir,

Can you give you give some guidance for customs formalities ?

[Pradeep Khatri]

If you are not eligible under any of the options as mentioned above then normal procedure will be adopted by you for importation of luxury bus.

Normally folllowing documents are being required by the Customs Authority for clearance of imported goods, namely:-

1. Importer Exporter Code Number (issued by DGFT)
2. Commercial Invoice with clear mentioning of INCOTERMS, 2010 (i.e. FOB, CIF, CFR, or Exworks etc.).
3. Packing list with accessories etc.
4. Quality Certificate
5. Certificate of orinin
6. Technical leaflets etc.
7. Actual sea freight amount if any
8. Insurance policy if any
9. Bill of Lading.
10. Purchase Order.

After submitting these documents (or any other document which is required by the Customs Department) to the Customs Department, the value as mentioned in the Commercial Invoice will be assessed for the purpose of Customs duty.

Customs duty will be deposited by you online. 

And after getting the outof charge order you get the goods from customs department.

One more aspect you need to take care, before getting the bus on road you would have to seek permission and temporary registration certificate from jurisdictional RTO Office.

Please also cross check these aspect from your Tax Consultant, CHA and with your key employees and most important do your home work and dig deep.

 

 

 

 

[Pradeep Khatri]

Dear Mr. Mahendra,

There is amendment in the Served From India Scheme.  We are attaching herewith relevant Circular for your kind information.

Best Regards,

Pradeep Khatri

 

 

 

Circular No. 18/2012-Cus.

F. No. 605/12/2012-DBK

Government of India

Ministry of Finance

Department of Revenue

New Delhi dated the 5^th July, 2012.

To

All Chief Commissioners of Customs

All Chief Commissioners of Customs & Central Excise/ Central Excise

All Director Generals under CBEC,

All Commissioners of Customs, Customs (Preventive)

All Commissioners of Customs & Central Excise/ Central Excise

 

Sir/Madam,

 

Sub: Amendment in para (4) of Circular No. 38/2010-Customs, dated 27.09.2010-Served From India Schemes(SFIS) – reg:-

Attention is invited to para (4) of Circular No. 38/2010-Customs, dated 27^th September, 2010, which reads: “Served From India Scheme (SFIS) As per existing Notification No. 91/2009-Cus. Import of vehicles is not allowed under the Served From India Scheme(SFIS), even if such vehicles are freely importable under the  Foreign Trade Policy.  However, after the announcement of Annual supplement to the Foreign Trade Policy, vehicles which are in the nature of professional equipment such as Airfield Fire Fighting and Rescue Vehicles (AFFRVs), Heavy Duty Modular Trailer Combination, Reach Stackers etc. for use by the service provider in his regular service business have been allowed to be imported against SFIS scrips.  However, personal vehicles such as motor cars/ Sports Utility Vehicles(SUVs) / Multi Utility Vehicles (MUVs) etc. are not permitted to be imported against SFIS scrips.  Notification no. 90/2010-Cus dated 01.09.2010 refers in this regard.”

2.        It has been decided by the Board that the vehicles which are in the nature of professional equipment, illustratively mentioned in para (4) of the said Circular, may also include Ambulance, Sewage Disposal Truck, Refuse Disposal Vehicle, that are pre-designed structurally and pre-fitted with relevant devices and mechanisms that make for their use for the intended purposes and enable a reasonable conclusion that they cannot be put to generalized or personal use; and Dumpers designed for off-highway use (as described in the Explanatory Notes to Chapter 87 of the Harmonized System of Nomenclature-HSN), for use by the service provider in his regular service business.  It is reiterated that personal vehicles such as motor cars/ Sports Utility Vehicles (SUVs)/ Multy Utility Vehicles (MUVs), etc. are not permitted to be imported against SFIS scrips.

 3.        There is no change in any aspect of the Notification No. 91/2009-Customs, as amended or any other aspect of Para (4) of the Circular No. 38/2010-Customs,, dated 27^th September, 2010.

 4.        These instructions should be brought to the notice of all concerned by way of issuance of instructions /trade notice.  Difficulty faced if any, may be brought to the notice of the Board.

 Yours faithfully,

 

 

(Suresh Kumar)

Director-Drawback

Telefax-011-23360581