Terms for used car imports

By Our Special Correspondent

NEW DELHI, MARCH 31. Import of passenger cars will now be allowed into the country with the lifting of QRs (quantitative restrictions) in the new Exim Policy. To protect the domestic industry, the Government has laid down several conditions for import of new and second hand cars.

These include a ban on import of second hand cars over three years old while left hand drive vehicles, either new or second hand, will not be allowed to be imported. Tariff barriers of 180 per cent on second hand cars have already been imposed in this year's budget proposals.

Besides, only select ports will be allowed to handle passenger car imports. Second hand cars can be imported only through Mumbai. These cars will have to have a minimun residual life of five years and the importer has to ensure supply of spares and service during this period.

For new and second hand cars, the vehicles have to conform to the provisions of the domestic motor vehicles legislation. In the case of new cars, import will only be allowed from the country of manufacture and the prototype has to be approved by notified agencies in this country.

The stringent conditions imposed on such imports have been justified on the ground of ``road safety and environmental considerations''. These will reassure domestic players including foreign majors such as Ford and General Motors as well as Hyundai and Daewoo which have made huge investments in the automobile industry in this country in recent years.

The Commerce Minister, Mr. Murasoli Maran, however, denied any suggestion that the domestic automobile industry was being protected because two major manufacturers were located in Tamil Nadu. He said the aim was only to provide a level playing field for domestic companies and also to ensure road safety for pedestrians in the country.

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Section  : Business
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