Import of foreign car without import duty

[Suvarna Kumar]

We are 100% export oriented unit with 45 crores anuual turn over, manufutering and export all types of floor coverings.Also we are star hosue exporter. On the basis of star house status . Can we import a foreign car with out duty.also please give me the deatils of foreign car import notification in the star house export benifits ? awaiting urgent reply

[Surender Gupta]

Para 3.16 of the Foreign Trade Policy (FTP) read with notification no. 104/2009 Cus dated 14-09-2009 allowed import of capital goods against Duty Credit Scrips as part of Status Holder Incentive scheme. The benefit is allowed only for capital goods. The meaning of capital goods for the purpose of exemption is as follows, "9.12 "Capital Goods" means any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernisation, technological upgradation or expansion. It also includes packaging machinery and equipment, refractories for initial lining, refrigeration equipment, power generating sets, machine tools, catalysts for initial charge, equipment and instruments for testing, research and development, quality and pollution control. Capital goods may be for use in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture as well as for use in services sector."

[RadheyShyam Mangal]

kindly refer para 6.5.1 (earlier para 6.6.1) of HBP Vol. 1 of FTP (2009-2014)for duty free goods to be imported/ procured from DTA by the 100% EOU unit. A EOU unit can not import car without payment of duty irrestective of the fact whethre it is star house or not.

AI Summary

Import restriction on passenger cars: export status holders cannot import foreign cars duty-free under capital goods exemptions.
A 100% Export Oriented Unit or star house cannot import a foreign passenger car duty-free. Duty-free imports under the Status Holder Incentive are limited to capital goods - defined as plant, machinery, equipment and accessories for manufacture or services - and the Handbook of Procedures does not permit EOUs to import cars without payment of customs duty.