Executive Summary:
This notification, issued by the Directorate General of Foreign Trade on May 8, 2018, introduces a new policy condition under Chapter 87 of ITC HS, 2017 Schedule 1 Import Policy. It concerns the import of automotive mining equipment, oil rigging equipment, and vehicles for research and development. The policy aims to regulate these imports by specifying conditions for their use and disposal.
Key Points / Main Content:
Policy Condition Insertion:
* A new Policy Condition, number 10, is inserted at the end of Chapter 87 of ITC HS 2017 Schedule 1 Import Policy.
Exemptions:
* Policy Conditions 1 and 2 (excluding specific sub-clauses) will not apply to imports of automotive mining equipment, oil rigging equipment for operation in captive mines/oil rigging areas, and vehicles for research and development purposes.
* Exemption is conditional on re-export or scrapping of imported items after the intended purpose, with certification from relevant authorities.
Applicability:
* The condition applies to both old/used and new equipment/vehicles.
Restrictions:
* Imported equipment/vehicles cannot be driven on public roads, except for mobilization and demobilization purposes.
Impact Analysis:
Importers of Automotive Mining Equipment, Oil Rigging Equipment, and Research/Development Vehicles:
* Impact: Subject to a new policy condition regarding the use, re-export/scrapping, and operation of imported equipment/vehicles.
* Action Required: Ensure compliance with the new Policy Condition 10, including re-export or scrapping requirements and restrictions on public road usage.
Key Entities Referenced
Foreign Trade Policy, 2015-2020: A trade policy governing import and export activities.
FTDR Act, 1992: Foreign Trade (Development and Regulation) Act, 1992, an act of the Indian Parliament to provide for the development and regulation of foreign trade.
ITC HS, 2017 Schedule 1 Import Policy: Indian Trade Clarification based on Harmonized System of Coding, 2017, Schedule 1 regarding import policy.
Chapter 87 of ITC HS, 2017 Schedule 1 Import Policy: A specific chapter within the ITC HS 2017 Schedule 1, pertaining to import policies related to certain goods.
Central Government: The Union Government of India.
Directorate General of Foreign Trade: The government agency responsible for implementing foreign trade policies.
New Delhi: The capital of India.
Ministry of Commerce and Industry: The Indian government ministry responsible for international trade and industry.