Import of foreign car without import duty

[Suvarna Kumar]

We are 100% EOU with annual turn over 45 crorer.Our Managing director need to pick up foreign buyer from Air port and attending main buyers meeting and company offical use- Can we import a foreign CAR with out import duty ?

[Rama Krishana]

If I put the question on the other way, can i classify a car as capital goods or inputs for the purpose of EOU operations? I believe no. You may not be entitled to import the car without import duty for the said purpose.

[Suvarna Kumar]

Any previous notification or any discussion regarding this matter

[RadheyShyam Mangal]

kindly refer para 6.5.1 of HBP 2009-2014 for eligible items of duty free import. you can not import car without payment of duty.

AI Summary

Duty free import eligibility: passenger cars for corporate use by an export unit are excluded; import duty applies. Passenger motor vehicles for company or official use by an Export Oriented Unit are not eligible for duty free importation; they cannot be classified as inputs or capital goods for EOU operations to obtain exemption, and applicable handbook eligibility provisions exclude cars from duty free import, so import duty must be paid.