The Director-General of Foreign Trade (DGFT) on Wednesday issued two notifications related to the Amendment in import policy and policy conditions of items under Chapter 84 of ITC (HS), 2017, Schedule – I and the procedure for allocation of import authorization of Power tillers.
In exercise of powers conferred by Section 3 of Foreign Trade (D&R) Act, 1992 amended the import policy and import policy conditions of items under Chapter 84 of ITC (HS), 2017, Schedule – I (Import Policy).
The import of Rotary tiller is currently free, however from the issuance of this notification the import policy of Rotary tiller restricted.
“Under HS code 8432 8020, Import is ‘Free’ for all items except Power Tillers as defined in IS: 13539-2018,” the notification said.
“Under HS code 8432 9090, Import is ‘Free’ for all items except for Engine, Transmission, Chassis and Rotavator forming parts of Power Tillers as defined in IS: 13539-2018,” the notification clarified.
Power Tiller is agricultural machinery used for soil preparation having a single axle, in which the direction of travel and its control during field operation is performed by the operator. It is self-powered, self-propelled, and can pull cultivator, harrow, plow, various seeder, harvester, and such other suitable attachments.
The equipment may be walking behind or riding attachment type and should be capable of being coupled to a trailer that can be used for transportation of goods of not less than 1-ton capacity. The maximum speed of the power tiller, when coupled to a trailer, shall not exceed 22 kmph. The minimum rated horsepower output of the power tiller engine shall not be less than 8 bhp (Brake Horse Power).
Import Policy of Power Tillers and its components is amended from ‘Free’ to ‘Restricted’.
The Director-General of Foreign Trade notified the procedure to implement the restriction imposed on the import of Power Tillers and its components (HS code 8432 8020 and 8432 9090).
Firstly, “the cumulative value of authorization issued to any firm/all firms in a year would not be exceeding 10% of the value of power tillers imported during the past year i.e 2019-20 by that firm/firms. The cap of 10% would also be applicable for components of power tillers,” the notification specified.
Secondly, the applicant should have been in the business for at least three years and should have sold a minimum of one hundred power tillers in the past three years.
Thirdly, the applicant should have the valid Type (ICT) /batch test report from FMTTI as well as emission test approval and CMVR of the power tiller sought to be imported.
Fourthly, the applicant should have satisfactory and proven infrastructure for training, post-sales service, and spare parts.
Fifthly, only manufacturers are eligible for applying for an import authorization for import of Power Tiller or its components.
Lastly, the Power Tiller which will be imported should meet all the specifications as notified from time to time under IS 13539 or higher than these specifications.
Subscribe Taxscan Premium to view the Judgment
