3% duty for certain imports, including cars under EPCG
The Government has granted an exemption and fixed an effective rate of 3% duty for the following goods:
1. Capital goods for pre-production, production and post production including second hand capital goods.
2. Capital goods in Semi Knocked Down ( SKD ) / Completely Knocked Down (CKD) conditions to be assembled into capital goods by the importer.
3. Spare parts of goods specified at Serial Nos.1 and 2 as actually imported and required for maintenance of capital goods so imported, assembled, or manufactured.
4. Spare parts for the existing plant and machinery of the licence or authorization holder.
5. Motor cars, sports utility vehicles/all purpose vehicles.
Of course the exemption is subject to stringent conditions like, the import of motor cars, sports utility vehicles or all purpose vehicles shall be allowed only to hotels, travel agents, tour operators or tour transport operators and companies owning or operating golf resorts, subject to the condition that,-
( i ) the total foreign exchange earning from hotel, travel and tourism and golf tourism sectors in current and preceding three licensing years is Rs.one crore fifty lakhs or more;
(ii) the duty saved amount on all EPCG authorizations issued in a licensing year for import of motor cars, sports utility vehicles or all purpose vehicles shall not exceed 50% of average foreign exchange earnings from hotel, travel and tourism and golf tourism sectors in preceding three licensing years; and
(iii) the vehicles imported shall be so registered that the vehicle is used for tourist purpose only. A copy of the registration certificate shall be submitted to the concerned Customs authorities as a confirmation of import of vehicle within six months from the date of import:
Notification No. , Dated: May 9, 2008