Effective duty exemption for components used to manufacture fuel-efficient small cars, conditional on certification and indigenisation. Exempts components for manufacture of fuel-efficient sub-1000cc motor cars from customs duty in excess of a 50 per cent ad valorem equivalent and from additional duty under section 3, conditioned on importation by a qualifying manufacturer, certification by an Industrial Adviser that components are for warranty or after-sales service, manufacture under an approved phased manufacturing programme with required indigenisation certificates (and, if shortfall occurs, Joint Secretary certification of marginal valid reasons), and production of a time-limited fuel-efficiency certificate based on prescribed tests.