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Old 23rd April 2016, 21:21   #1
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Default Manufacturer declared values of Superbike Imports

I was trying to understand the duty structure of superbikes imported into India.

Summarising my learnings below, with some very interesting observations -

1.Till 1st April 2011, the custom duty for importing CKD kits for assembling both motorcycles and cars was 10%

2.The year's budget raised the CKD duty to 60%, besides giving a clear & crisp definition for CKD Assembled Vehicles - "A definition for ''CKD unit'' of a vehicle, including two-wheelers, eligible for concessional import duty is being inserted to exclude from its purview such units containing a pre-assembled engine or gearbox or transmission mechanism or chassis where any of such parts or sub-assemblies is installed"

3.CKD Vehicles not containing pre-assembled engine or gearbox or transmission were continued to be taxed at 10%

4.The automobile industry raised a furore as expected, and after intense lobbying, the rate was revised from 60% to 30%

5.The same rate has continued till today. The current duty rates(source SIAM website) are as under -
Two-wheeler CBUs with engine capacity <800 cc - 60%
Two-wheeler CBUs with engine capacity >=800 cc - 75%
CKD containing engine or gearbox or transmission mechanism in pre-assembled form but not mounted on a chassis or a body assembly - 30%
CKD containing engine, gearbox and transmission mechanism not in a pre-assembled condition - 10%

Thought of checking the declared cost and the declared import packing of few of our loved brands. Started with Harley Davidson, and this is what I gathered -
1.The import price of Iron 883 is declared as INR 340,000
2.For Custom 1200 it is around 372,000
3.The most surprising is the declared value of the Fatboy - INR 402,000
4. Kawasaki' ER6n's declared value is INR 190,000, that of Versys 650 is INR 240,000
5. Ducati's Iconic Scrambler is imported at INR 490,000 and the Multistrada at INR 862,000

Also, all the Harley Davidson motorcycles fall in the 'CKD containing engine, gearbox and transmission mechanism not in a pre-assembled condition', hence attracting a custom duty of 10%

Some of you may remember Harley Davidson India's widely appreciated gesture of not passing on the increased costs due to the increase in CKD duty, way back in 2011. In this context, seems Harley changed the packing of their CKD imports to include non assembled engine, gearbox and transmission

Attaching screenshots of the data involved. Will leave the rest of the conclusions for the members
Attached Thumbnails
Manufacturer declared values of Superbike Imports-screenshot_201604232056582.png  

Manufacturer declared values of Superbike Imports-screenshot_201604232035112.png  

Manufacturer declared values of Superbike Imports-screenshot_201604232135472.png  


Last edited by Bhatt : 23rd April 2016 at 21:45. Reason: Numbered
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Old 24th April 2016, 09:54   #2
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Default Re: Manufacturer declared values of Superbike Imports

Interesting post. I think some of the rates also depend on the FTA's between India and other countries. For example the Kawasaki Z800 (CBU from Thailand) attracts a lower duty rate than the Z1000 (CBU from Japan).
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Old 28th April 2016, 22:07   #3
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But then is Harley bringing the engine and transmission components to India? What is the excise tariff for such motorcycles and how does the same Custom 1200 cost nearly three times this value at ex-showroom?

The customs declared price with a 100% markup looks closer to what they price these bikes at in USA.

Hd is making more than a huge profit on each bike!! I just hope local brands exploit this opportunity and offer something more VFM.

Last edited by aah78 : 29th April 2016 at 21:26. Reason: Post edited for grammar & spell-check.
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