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India notifies approval process for vehicle imports under UK FTA

New Delhi

Indiahas notified the procedure for importers to seek government approval to avail quota-based duty concessions on imports of passenger cars and goods vehicles under the free trade agreement with the UK, which will come into force on July 15.

Under the Comprehensive Economic and Trade Agreement (CETA), India will reduce import duties on automotive imports from about 110 per cent to 10 per cent, with quotas on both sides.

India is allowing import of 3.78 lakh units of conventional-engine passenger cars, including those in the mass segment, from the UK at concessional customs duty during the first 15 years of the implementation of the trade pact between the two countries.

"Procedure for allocation of Tariff Rate Quotas (TRQ) under India-UK (CETA) is notified," the Directorate General of Foreign Trade (DGFT) has said in a public notice dated July 9.

It said that at the time of clearance of the import consignment, the importer in India has to produce a Certificate of Origin issued by concerned authorities in the UK.

"Only Original Equipment Manufacturers (OEMs), Dealers/Channel Partners duly authorised by the OEMs of vehicles originating in the UK shall be eligible to apply for the TRQ," it added.

The DGFT also said that to be eligible, each applicant will have to submit a pre-purchase agreement issued by an OEM of the vehicles in the UK setting out the quantity of vehicles agreed to be supplied to the applicant during the TRQ year. "The year in respect of these imports will be the period from 1st January to 31st December, i.e., calendar year in India. DGFT shall monitor the cumulative quantities for TRQ Certificates issued. No TRQ Certificates shall be issued once the stated TRQ quantity limit is reached," it said. These certificates, it said, will be valid for a maximum period of 12 months or till the end of the calendar year, whichever is earlier.

"Importers under TRQ shall endeavour to pass on the benefit of the concessional customs duty available under the TRQ to the final buyer or consumer," it added.