[Enigmatic]

For the benefit of everyone, i will try to clarify the doubts :-

The new clause as Inserted by the Director General of Foreign Trade says :-

"(III) Cars manufactured prior to 1st January, 1950 are free for import by Actual Users. Policy Condition (I) and (II) above shall not be applicable for these cars. However, such of the cars that would be plying on public roads will continue to be subject to Central Motor Vehicles Act, 1988 and Rules, 1989."

Policy Conditions (I) and (II) as laid down under Condition 1 of Chapter 87 of ITC (HS) 2012, Schedule 1 (Import Policy) says as under :-

"(I) A second hand or used vehicle (including all the vehicles other than Railway or Tramway) for the purposes of this Chapter shall mean a vehicle that:-
(a) has been sold, leased or loaned prior to importation into India; or
(b) has been registered for use in any country according to the laws of that country, prior to importation into India;"

And the condition (II) states as under :-

"(II). The import of second had or used vehicles shall be subject to the following conditions:-
(a) The second hand or used vehicle shall not be older than three years from the date of manufacture;
(b) The second hand or used vehicle shall:
(i) have right hand steering, and controls (applicable on vehicles other than two and three wheelers);
(ii) have a speedometer indicating the speed in Kilometres; and
(iii) have photometry of the headlamps to suit “keep left” traffic.
(c) In addition to the conditions specified in (a) and (b) above, the second hand or used vehicle shall conform to the provisions of the Motor Vehicle Act, 1988 and the rules made thereunder.
(d) Whoever being an importer or dealer in motor vehicles who imports or offers to import a second hand or used vehicle into India shall,
(i) at the time of importation, submit a certificate issued by a testing agency, which the Central Government may notify in this regard, that the second hand or used vehicle being imported into India has been tested immediately before shipment for export to India and the said vehicle conforms to all the regulations specified in the Motor Vehicles Act, 1988 of India and the rules made thereunder.
(ii) At the time of importation, submit a certificate issued by a testing agency, which the Central Government may notify in this regard, that the second hand or used vehicle being imported into India has been tested immediately before shipment for export to India and the said vehicle conforms to the original homologation certificate issued at the time of manufacture.
(iii) On arrival at the Indian port but before clearance for home consumption, submit the vehicle for testing by the Vehicle Research and Development Establishment, Ahmednagar of the Ministry of Defence of the Government of India or Automotive research Association of India, Pune or Central Farm Machinery Training and Testing Institute, Budni, Madhya Pradesh for tractors, and such other agencies as may be specified by the Central Government, for granting a certificate by that agency as to the compliance of the provisions of the Motor Vehicles Act, 1988 and any rules made thereunder.
(iv) Import of these vehicles shall be allowed only through the customs port at Mumbai.
(e) The second hand or used vehicles imported into India should have a minimum roadworthiness for a period of 5 years from the date of importation into India with assurance for providing service facilities within the country during the five year period. For this purpose, the importer shall, at the time of importation, submit a declaration indicating the period of roadworthiness in respect of every individual vehicle being imported, supported by a certificate issued by any of the testing agencies, which the Central Government may notify in this regard."



The amendment makes it a lot more easier to Import cars made before 1950. It is particularly helpful as the restrictions imposed by the aforementioned two conditions pretty much made it illegal to import cars that were more than 3 years old.

The meaning of the word "FREE" as has been used in the amendment means that these goods can be imported by any person without getting any authorization from the Central Government or any of its authorities. However the same is applicable only to "Actual Users".

Actual User as defined under Chapter 9 of The Foreign Trade Policy 2010-2011 states as under :-

1. “Actual User” means an actual user who may be either industrial or non-industrial.

2. “Actual User (Industrial)” means a person who utilises imported goods for manufacturing in his own industrial unit or manufacturing for his own use in another unit including a jobbing unit.

3. “Actual User (Non-Industrial)” means a person who utilises the imported goods for his own use in
(i) any commercial establishment carrying on any business, trade or profession; or
(ii) any laboratory, Scientific or Research and Development (R&D) institution, university or other educational institution or hospital; or
(iii) any service industry.

[thoma]

(May be the pessimist in me) have a counter thought. Why was this restricted in the first place? Not to make India a scrap-yard destination? Seriously, I'm unaware; this was just a wild guess and would like to be educated on why exactly. And how come this is overcome now all of a sudden?

Sorry vintage enthusiasts, I did not mean a thing about cars with vintage value but I meant those who dump for scrap recovery.

[manishalive]

This is indeed a great news, I see that my dream of owning a willys mb and an oval window getting fulfilled. By the way I was in Myanmar (Burma) a week ago, saw many interesting vehicles in LHD.

[S.B.Jatti]

Originally Posted by Enigmatic

For the benefit of everyone, i will try to clarify the doubts

There seems to no clarity on how these cars will be valued or who will certify the correctness of the declared value ? If you intend to use them on public roads, there could be some problems in registration in some states.

[harit]

Originally Posted by thoma

(May be the pessimist in me) have a counter thought. Why was this restricted in the first place? .........Sorry vintage enthusiasts, I did not mean a thing about cars with vintage value but I meant those who dump for scrap recovery.

Restriction was imposed for the import of any car primarily encourage the Indian public to buy Amby's, Fiats and Heralds. Restrictions came in in the later part of the 1950's. This had nothing to do with vintage cars. I don't understand what you are sorry about, who are those who dump for scrap recovery, and what is scrap recovery? Even today scrap cars come into the country, in container loads, but these vehicles have been modified with the use of explosives and will not get a fitness certificate (but you never know)

Originally Posted by manishalive

This is indeed a great news, I see that my dream of owning a willys mb and an oval window getting fulfilled. By the way I was in Myanmar (Burma) a week ago, saw many interesting vehicles in LHD.

Dear Manish, the notification is for pre 1950, so you have to select other models.

The actual user is the owner of a car registered in his name for more than a year. In Indian citizen can own cars abroad and will be eligible.
I think that the cars have to be RHD, and they must come in from the country they were manufactured in.
Remember, all is open to interpretation and I am sure clarifications will be sought and given.
As said, it is a good beginning, and the guys who worked on this must be applauded.
And then we will see how many cars will come in, hopefully a good number.

Cheers harit

[1100D]

Originally Posted by Enigmatic

"[i](II). The import of second had or used vehicles shall be subject to the following conditions:-
(a) The second hand or used vehicle shall not be older than three years from the date of manufacture;

So can one still technically buy a second hand used pre 1950 vehicle abroad and then ship it here? Because if one buys one now, it will be much more than 3 yrs from date of manufacture.

[harit]

Originally Posted by 1100D

So can one still technically buy a second hand used pre 1950 vehicle abroad and then ship it here? Because if one buys one now, it will be much more than 3 yrs from date of manufacture.

Dear Sir,

You do not seem to be dealing much with Government departments because when you read you have to go deep into it like doing a Phd.
What the notification said is that :

"(III) Cars manufactured prior to 1st January, 1950 are free for import by Actual Users. Policy Condition (I) and (II) above shall not be applicable for these cars. However, such of the cars that would be plying on public roads will continue to be subject to Central Motor Vehicles Act, 1988 and Rules, 1989."

Therefore the 3 year rule does not apply. I suggest that you read this again. And what do you plan to import? Many collectable cars left India from Calcutta, maybe you can bring back one.

Cheers harit

[condor]

On another note, why is there a restriction on import ?
( A restriction on export would have been some what logical - that they didnt want to lose any heritage stuff)

[harit]

Originally Posted by condor

On another note, why is there a restriction on import ?
( A restriction on export would have been some what logical - that they didnt want to lose any heritage stuff)

Originally Posted by harit

Restriction was imposed for the import of any car primarily encourage the Indian public to buy Amby's, Fiats and Heralds. ........ Cheers harit

The answer is in my post above, reproduced above for your benefit.

Cheers harit

[manishk123]

Originally Posted by Stanher

No doubt good news, but even better (IMHO) had it been extended to pre-1960, as most of the 'trendsetting' cars especially in the US were made in between 1950-60.

My sentiments exactly!
Its a good start nevertheless. Hopefully in a few years they will allow pre 1960 cars too.

[Stanher]

Originally Posted by manishalive

This is indeed a great news, I see that my dream of owning a willys mb and an oval window getting fulfilled.

By oval, if you mean the Beetle, the Oval window came out only in 1956. Pre-1950 would cover at the most the earliest (split-window ones). Unfortunately, it appears that the powers-that-be have a very vague idea of until which era a 'classic' can be extended and seem to think it pertains only to cars that were made before 1947/WW2, with spoked wheels and starting handles, usually seen in movies related to our Independence struggles etc. hence maybe the line being drawn until 1950!

Originally Posted by harit

Restriction was imposed for the import of any car primarily encourage the Indian public to buy Amby's, Fiats and Heralds.

Even in case of Heralds/Standards there were restrictions (which I dont intend to digress into in this thread!)
twas more like Amby-Fiat-centric!

[Bulldogji]

Originally Posted by manishk123

My sentiments exactly!
Its a good start nevertheless. Hopefully in a few years they will allow pre 1960 cars too.

If wishes were horses, pigs would fly.

[KartikeyaL]

Hope the restrictions are gone forever and the process of importing is a smooth one, all of a sudden this has opened avenues for enthusiasts, we now will have choice to pick up exotic cars which was a distant dream.

Lets hope for the sake of the movement that this stays, Hard to believe, too good to be true !!

[DKG]

Today's TOI carried an article on the lifting of restrictions on import of pre 1950 cars. Really wonderful news. My personal view is that finally this will encourage a decent amount of trading in vintage cars in India as you now have a reference point for car prices abroad plus freight and duties to arrive at a value which both owner and buyer can now use to negotiate.

[ACM]

Wish they also made import of PARTS FOR pre 1970 vehicles duty free. It will encourage better maintenance of vehicles it will not be a mass import anyways and will not affect the Govt. collections but will ensure better state of Classic vehicles in India.

Pre 1950 cars should also not just be permitted but also be more or less be duty free. Why not improve the look of vehicles in India in the process. No one is really going to use this to import cars as a daily drive.