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Old 4th March 2004, 04:47   #1
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Default A8 for less than the E,what is EcoTimes talking about

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Eyeing that Jag? It can be yours for Rs 20 lakh plus
NANDINI SEN GUPTA

TIMES NEWS NETWORK[ SATURDAY, JANUARY 31, 2004 03:59:33 AM ]
NEW DELHI: If the word homologation makes you wonder what sort of an animal-on-four-wheels it is, hereís something *that will gladden your heart. The new homologation laws, coupled with the existing EPCG (Export Promotion Credit Gurantee) duties, will make some of the most coveted wheels on earth relatively affordable for Indian pockets. Under the EPCG scheme, car imports attract a 5% duty. With the exit of SAD earlier this month, the only other duty slab for this segment is the 16% CVD (countervailing duty).


So far, the biggest import barrier for this segment was the homologation cost of Rs 2-3 lakh to Rs 30-odd lakh, depending on the make under validation. Under the new homologation rules, all cars above $40,000 or Rs 18 lakh CIF value will no longer need homologation. Which means, under the EPCG scheme, a $40,000 vehicle can come into India for a tag as low as Rs 20 lakh, which is lower than the cheapest model in the Mercedes Benz stable, the C-class.

If you hold an EPCG licence *and are eyeing the latest Jaguar ó the S-type V6, which was launched in Detroit earlier this month ó the tag you are looking at is a minimum $42,000. At 5% import duty and 16% CVD, the final tag is a little over Rs 23 lakh. This is cheaper than the Rs 25.86 lakh that DaimlerChryslerís just-launched diesel C-class upgrade, the 220 cdi, costs. Depending upon the trim levels, the Jag tag could go up to $62,000.

Ditto for the largest Sedan in the Volkswagen group company Audiís stable. The A8, which sports a $62,000-$68,000 tag, depending on the variant you choose, can now be imported into India at just over Rs 34 lakh. Thatís cheaper than the Mercedes Benz E-class (both diesel and automatic), which costs Rs 35.97 lakh and Rs 35.01 lakh respectively. And itís almost neck-and-neck with the Pajero 3.2 DI diesel, which costs Rs 33.8 lakh. Prices are ex-showroom Delhi.

If itís a BMW 7-series you are interested in, the tag will be pricier than most models available in India. The Ď04 7-series costs between $69,995-$119,195. This means at current duty levels, the minimum price of the 7-series will be Rs 38.5 lakh.

The no-homologation ruling will also help EPCG holders to import existing CBU models at lower prices. The S-class, which costs Rs 57.79 lakh for its 350L model in India, can be imported under the EPCG route at a minimum of Rs 40 lakh. The tag will go up according to trim levels. Similarly, the Hyundai Terracan, which is selling at Rs 18.5 lakh, can be imported for Rs 12 lakh only, giving the just launched Ford Endeavour a run for both its money and share of the diesel SUV market.
Can some one please explain..

how is it that we are getting the A8 for less than the price for E and S for less than the price of C??

I might have not got something here..

L8r

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Old 4th March 2004, 12:33   #2
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Hey pal

The article given there is based on the EPCG scheme.Under this scheme only f those who earn foreign revenue for the country and can import the cars on EPCG through scheme. These people just attract 5 % duty . So an A8 bought under EPCG turns out to be cheaper than an E on road in Mumbai. Under the EPCG scheme you can buy an opel Vectra which cost 16 lakhs here for as low as 8 or 9 lakhs. i hope you got what I meant.

Anyways if you have any more doubts post it

Cheers

P.S : wish i was under the EPCG scheme
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Old 4th March 2004, 12:37   #3
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Oh I get it, so how do you get under this scheme??

Do you have to be an importer / exporter and what do you think all these guys wouldnt be talking advantage of this and then selling the cars for the regular price??

Thanks for the reply
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Old 4th March 2004, 13:31   #4
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Quite honestly, there is no single resource of information on the EPCG scheme. Every govt. branch seems to have its own version. I had contacted the office at Marine Lines, and this is the information I got from them :

1. You have to be in the hotel, tourism or travel industry. Basically EPCG stands for Export Promotion Capital Goods (even autocar had provided with this full form), which means that whatever you are importing should help you to earn more foreign exchange.
2. You forex revenue should be atleast 5 times the value of the car you wish to import. Thus if you want to import a $20,000 car from the US, you must be pulling in atleast $100,000 in forex.

I had inquired and the Camry (fully loaded version with leathers et all) was available for a mere 9 lacs.

Sweet deals, arent they?

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Old 4th March 2004, 13:51   #5
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My neighbour got a BMW 740i (the previous version) like this. Quite a few BM's in Bl'ore are iported like this. Best part is that if you fall below the forex revenue projection, the fine is minimal
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Old 7th April 2004, 21:34   #6
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how does one get the epcg licensce?
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Old 10th April 2004, 00:19   #7
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Hi! Do any of u guys know who had got a car import in this scheme.
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Old 10th April 2004, 00:54   #8
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The Leela has a lot of 3 Series. I guess those were brought under EPCG scheme.
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Old 10th April 2004, 01:02   #9
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However, import of motor cars, sports utility vehicles/all purpose vehicles would be allowed only to hotels, travel agents, tour operators or tour transport operators whose foreign exchange earning in the current licencing year or preceding three licencing years in 15m Indian rupees.

Check this site for more details : http://www.legal500.com/devs/in/cc/incc_002.htm
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Old 17th April 2004, 05:42   #10
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wait isnt the epcg scheme for individuals??? the how come sachin get off the hook for the modena??? i mean homologation nt import duty??\\
also guys see u hve to own the audi a8 firstso thats like what $70-1,00,000 and then end up paying the duty also for it whaich is another rs, 30- 40 lac. so addd it up and imagine what a RIP OFF
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Old 17th April 2004, 19:11   #11
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Quote:
Originally Posted by [b
Quote[/b] ]also guys see u hve to own the audi a8 firstso thats like what $70-1,00,000 and then end up paying the duty also for it whaich is another rs, 30- 40 lac. so addd it up and imagine what a RIP OFF
Precisely why the custom duties exist. The Government wants you to support local industries by buying an S-Class from DC India, instead of exporting labor by picking up an A8 and importing it.



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Quote[/b] ]i mean homologation nt import duty??\\
Last I heard, FIat India footed the custom duty bill for Sachins Ferrari 360. Also homologation is now not required for cars costing over $40,000.

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Old 18th April 2004, 05:12   #12
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Quote:
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Quote[/b] (GTO @ April 17 2004,17:41)]Precisely why the custom duties exist. The Government wants you to support local industries by buying an S-Class from DC India, instead of exporting labor by picking up an A8 and importing it.
ya man so this good only for business houses. also indivivduals have to go through the same prodedure...more money and more rip off

also epcg scheme requires u to drive around with a YELLOW plate...! that sucks. cars imported in this scheme will have to reimported to the country of embarkation after a period of 2 years.
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