Indigenisation requirement conditions import licences for CKD/SKD kits and ties export obligations to imports under joint ventures. Imports of CKD/SKD kits/components SHALL be allowed only against DGFT import licences issued to joint venture automobile manufacturers that sign an MOU with the Government. The MOU mandates establishment of actual manufacturing facilities, staged indigenisation targets leading to cessation of licence requirement once the highest indigenisation level is reached, and an export obligation to neutralise CIF imports with FOB exports of cars and auto components commencing after a moratorium from the deemed production start. Compliance is monitored by annual reports and DGFT licence renewal.
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Provisions expressly mentioned in the judgment/order text.
Indigenisation requirement conditions import licences for CKD/SKD kits and ties export obligations to imports under joint ventures.
Imports of CKD/SKD kits/components SHALL be allowed only against DGFT import licences issued to joint venture automobile manufacturers that sign an MOU with the Government. The MOU mandates establishment of actual manufacturing facilities, staged indigenisation targets leading to cessation of licence requirement once the highest indigenisation level is reached, and an export obligation to neutralise CIF imports with FOB exports of cars and auto components commencing after a moratorium from the deemed production start. Compliance is monitored by annual reports and DGFT licence renewal.
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