New norms to curb car import misuse

Following large-scale misuse of import norms for foreign vehicles under the Export Promotion Capital Goods Scheme, the commerce ministry is considering introduction of registration norms to limit use of such vehicles to tourists.

The Directorate-General of Foreign Trade will soon convene a meeting with the concerned departments of road transport, commerce and revenue to seek inputs on these registration norms, a senior official told Business Standard.

Officials said the EPCG scheme, which allows for import of capital goods including vehicles at a concessional import duty of five per cent, was intended to encourage companies to import vehicles for the tourism sector, for use by hotels and tour operators.

"However, there was misuse of the scheme on account of diversion of imported vehicles for personal use," an official said.

The officials said the DGFT was also sending copies of a Delhi High Court judgement to all regional licensing authorities. The judgement had clearly stated that the registration norms should be such so to ensure use of imported vehicles under the scheme by tourists.

The DGFT has also sought inputs of other ministries regarding norms for genetically modified food imports.

"The DGFT has in the policy merely introduced a provision that GM imports must be accompanied by a declaration. There are no norms, but in case other ministries want norms to be included, the DGFT will consider it," an official said.