Trade Articles |
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Norms for Import of Cars
Taking a quick action on the reports concerning to misusing of tax concessions, available on importing of vehicles by hospitality and tourism sector, the government has further tightened the norms for import of high cars and sports vehicles used by travel agents, hotels and tour operators. According to the Directorate General of Foreign Trade (DGFT), vehicles which are being using for tourism purposes are required to be registered as vehicles 'for tourist purpose only' for getting a clearance from custom authorities. Custom authorities will endorse such vehicles to be registered under the head of 'for tourist purpose only'. They are needed to be registered solely as tourist vehicle at the time of getting clearance. Such steps are intended to make for ensuring proper and efficient use of vehicles under the Export Promotion Capital Goods (EPCG) Scheme. As per the federation of Indian export organization, a person is allowed to import vehicle at a concessional rate of maximum 5% under EPCG scheme against of 100% duties in case of normal imports. The DGFT action is based on the reports which highlight the fact that many high vehicles imported for tourism purposes have been further sold to traders, film stars and politicians. The Revenue Department have probed into many cases and collected penalties and customs, in case they found guilty. Earlier in 2006, the government had tightened their import restrictions after considering the results obtained from the Revenue Department, that many vehicles imported under the EPCG scheme for promoting tourism and hospitality industries, had found their pave for the personal use of politicians, businessmen and film stars. Number of such vehicles were impounded by the department and due custom duty and penalty fees were recovered from them. So this time the Directorate General of Foreign Trade (DGFT) has introduced some remarkable changes and through an executive order have introduced disciplining on the registeration side. Now one cannot import motor cars parts, sports utility vehicles and all other purpose vehicles like chassis under the EPCG Scheme for other that tourism purposes. The said movement of government will bolster use of motor cars and sports utility vehicles for the purpose which they have been imported i.e, for tourism sector. This will also help in plug down all loopholes and will encourage unfeigned transactions of motor cars, sports utility vehicles for further use in traveling business. It also states that in all such cases where the Export Obligation Discharge Certificate (EODC) has not been obtained by 30th June 2008 and where holder fails to register its vehicle as tourist vehicles, EPCG authorization holders are required to get them registered under the category of 'tourist vehicles' before 31st August, 2008. All the government vehicles which have been imported under the EPCG scheme in the past, would now have to be registered themselves as tourist vehicle. Furthermore, one copy of registration is necessitated to be submit to the concerned licensing authority. This has to be done in respect of the confirmation that the vehicle has been imported and capital goods have been efficiently installed. However, the government has make out no change on the existing conditions, which states that -
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