{"id":21879,"date":"2020-12-14T12:42:24","date_gmt":"2020-12-14T07:12:24","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=21879"},"modified":"2023-05-05T12:11:28","modified_gmt":"2023-05-05T06:41:28","slug":"iec-plays-fundamental-role-in-vehicle-business-under-exim-policy","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/iec-plays-fundamental-role-in-vehicle-business-under-exim-policy\/","title":{"rendered":"Do you Know IEC Plays Fundamental Role in Vehicle Business under EXIM Policy?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Shipping vehicles\nfrom the overseas location could be an intimidating task for any new importer.\nIf you wish to enter into the business of global trading then you must\nascertain legal obligations associated with this form of business. Import\nExport Code is one such prerequisite that every individual has to avail who is\nlooking to enter into the global business. <\/p>\n\n\n\n<p>IEC is a 10-digit number code provided to the individual involved in international trading by the regional office of the Directorate General of Foreign Trade (DGFT). In general, the <a href=\"https:\/\/corpbiz.io\/iec-registration\"><strong>IEC registration<\/strong><\/a> is required to be attached in the shipping documents for obtaining clarification from the customs and other authorities. In short, this code helps in averting legal constraints involved with the customs clearance inclusive of shipment inspection.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/iec-plays-fundamental-role-in-vehicle-business-under-exim-policy\/#Exporting_Vehicle_to_An_Overseas_Client\" >Exporting Vehicle to An\nOverseas Client<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/iec-plays-fundamental-role-in-vehicle-business-under-exim-policy\/#What_is_the_Harmonized_System_Codes\" >What is the Harmonized System Codes?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/iec-plays-fundamental-role-in-vehicle-business-under-exim-policy\/#Import_of_Vehicles_under_EXIM_Policy\" >Import of Vehicles under\nEXIM Policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/iec-plays-fundamental-role-in-vehicle-business-under-exim-policy\/#Importation_of_Cars_under_Transfer_of_Residence\" >Importation of Cars under\nTransfer of Residence<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/iec-plays-fundamental-role-in-vehicle-business-under-exim-policy\/#Import_of_Passenger_CarsJeeps_Multi-Utility_Vehicles_Etc\" >Import of Passenger Cars\/Jeeps\n\/ Multi-Utility Vehicles Etc<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/iec-plays-fundamental-role-in-vehicle-business-under-exim-policy\/#Procedure_to_Avail_IEC_for_Vehicle_Business_under_EXIM_Policy\" >Procedure to Avail IEC for Vehicle Business under EXIM Policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/iec-plays-fundamental-role-in-vehicle-business-under-exim-policy\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exporting_Vehicle_to_An_Overseas_Client\"><\/span>Exporting Vehicle to An\nOverseas Client<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The exporting\nprocedure begins with the inspection of the sample which is supposed to be\nexported to the foreign client. For this, the exporter may ship the vehicle as\na sample to the prospect and waits until he\/she receives the approval of the\nbuyer. After approving the sample, the importer may ask the exporter to forward\nthe&nbsp;<strong>terms of payment and\ndelivery<\/strong><strong>*.<\/strong>&nbsp;<\/p>\n\n\n\n<ul><li>After approving\nthe contract of sale, the exporter will then sent the proforma invoice to the\nimporter enclosing the complete detail of the sale. The buyer, in response to\nthis, places an order in form of a Letter of credit or purchase order.<\/li><li>After receiving\nthe export order, the seller initiates the exporting formalities such as\narranging the document like export order, packing list, certificate of origin,\netc. This may also include a pre-shipment inspection requested by the\nimporter.&nbsp;<\/li><li>In the next step,\nthe exporter will drop the request for shipment of goods at the freight\ncarrier. Depending on the contract detail, the exporter may ship the goods\neither on FCL (full container load) or LCL (Less Container Load).&nbsp;<\/li><\/ul>\n\n\n\n<p>This is a general\noverview of an exporting process. The next section will discuss the IEC and\nHarmonized System Codes followed by some information on EXIM policy.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Harmonized_System_Codes\"><\/span>What is the Harmonized System Codes?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Harmonized\nSystem Codes is essentially regarded as product classification code that helps\nthe custom and other authorities to identify the product during the inspection\nprocess. If you wish to ship a vehicle to any country or establish an exporting\nbusiness then you must be familiarized with this coding system.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Import_of_Vehicles_under_EXIM_Policy\"><\/span>Import of Vehicles under\nEXIM Policy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Exim Policy of\nIndia has underpinned some strict provisions related to the import of vehicles.\nAccording to the EXIM Policy, the imported vehicle should not carry the\nfollowing attributes:&nbsp;<\/p>\n\n\n\n<ul><li>The vehicle should not be manufactured in India<\/li><li>The vehicle should not be part of the selling or lease contract.&nbsp;<\/li><li>The vehicle should not show non-conformity with the Central Motor Vehicles Rules (CMVR), 1989.<\/li><\/ul>\n\n\n\n<p>Apart from the said provision, the EXIM policy also states that the vehicle should not be imported from a country other than the country of manufacture.&nbsp;<\/p>\n\n\n\n<p>The import of new\nautomobile will be subjected to the following provisions of the Indian\nGovernment<\/p>\n\n\n\n<p><strong>1.<\/strong> <strong>A new imported vehicle shouldn\u2019t be a vehicle that:-<\/strong><\/p>\n\n\n\n<ul><li>manufactured\/assembled in India; and<\/li><li>sold, leased, or loaned before making its way to India; or<\/li><li>Has been registered for use in any nation as per the laws of that nation, before importation into India.<\/li><\/ul>\n\n\n\n<p><strong>2.<\/strong> <strong>The importation of new automobiles shall be subjected to the given conditions:<\/strong><\/p>\n\n\n\n<ul><li>The new vehicle must have&nbsp;<ul><li>A speedometer that shows speed in km \/ h;<\/li><\/ul><ul><li>Right-hand steering, and controls other than two and three-wheelers.&nbsp;<\/li><\/ul><ul><li><em>photometry of the headlights to suit &#8220;keep-left&#8221; traffic; and<\/em><\/li><\/ul><ul><li><em>Imported from the country of manufacture<\/em><strong><em>.<\/em><\/strong><\/li><\/ul><\/li><\/ul>\n\n\n\n<ul><li>Also, the new vehicle shall be in line with the provisions of the Central Motor Vehicles Act, 1988, on the date of import.&nbsp;<\/li><li>The import of new automobiles will be allowed via the Indian Customs Port at Nhava Sheva (Mumbai), Calcutta, and Chennai.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Import of Old Vehicles<\/h3>\n\n\n\n<p>The Indian Government has permitted the entry of used automobiles into the nation only via Mumbai port. The Ministry of Commerce has to pinpoint six categories of used automobiles in terms of their cylindrical capacity for which import is allowed.&nbsp;<\/p>\n\n\n\n<p><strong>1. A second hand or old vehicle shall be referred to as an automobile that:-<\/strong><\/p>\n\n\n\n<ul><li>has been sold or loaned before making its way to India; or<\/li><li>has been registered in any nation as per the laws of that nation, before importation into India;<\/li><\/ul>\n\n\n\n<p><strong>2. The import of the old vehicles shall be subjected to the given conditions:-<\/strong><\/p>\n\n\n\n<ul><li>The used or old vehicle shall not be served more than three years of service life from the date of manufacture; The used vehicle must have:<ul><li>Right-hand steering, &amp; controls in case of four-wheelers only.&nbsp;<\/li><\/ul><ul><li>a speedometer showing the speed km \/ h, and<\/li><\/ul><ul><li>photometry of the headlights to suit &#8220;keep left&#8221; traffic.<\/li><\/ul><\/li><\/ul>\n\n\n\n<ul><li>Also, the used vehicle shall not adhere to non-conformity with provisions of the <strong>Motor Vehicle Act, 1988<\/strong><sup><a href=\"https:\/\/www.indiacode.nic.in\/bitstream\/123456789\/1798\/1\/a1988-59.pdf\"><strong>[1]<\/strong><\/a><\/sup> on the date of import.<\/li><li>Import of old vehicles shall be permitted only via customs port at Mumbai.<\/li><li>The used or old vehicles should have a minimum roadworthiness of not less than 5 years from the date of import with service assurance facilities within the nation during the five years.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Banned Vehicles<\/h3>\n\n\n\n<p>The policy\nforbade the import of vehicles whose engine capacity ranges from 1000 to\n2500cc. In the case of two-wheelers, scooters equipped with an engine capacity\nof over 50 cc to 500cc are allowed for importation. Motorcycle engine capacity\nmust lies between 250 to 800 cc.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importation_of_Cars_under_Transfer_of_Residence\"><\/span>Importation of Cars under\nTransfer of Residence<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Any overseas\nindividual coming to India on a transfer basis is permitted for the importation\nof one vehicle. The imported automobile could be old or new. However, it is\nvital that vehicle ought to be imported into India within six months of the\narrival of overseas nationals. <\/p>\n\n\n\n<p>The imported\nvehicle adheres to the condition of No sale for two years, which will be\npermitted by the Customs Authorities on the passport during importation and by\nthe Regional Transportation Authorities when such automobiles are presenter for\nregistration in the country of import.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Import_of_Passenger_CarsJeeps_Multi-Utility_Vehicles_Etc\"><\/span>Import of Passenger Cars\/Jeeps\n\/ Multi-Utility Vehicles Etc<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The conditions\nprescribed for the importation of new and old automobiles is not applicable to\nthe import of passenger\/ Jeeps\/cars\/ multi-utility vehicles etc. The said\nvehicles may be imported in the country after making payment regarding custom\nduty. The Directorate General of Foreign Trade (DGFT) may, however, allow\nrelaxation of these conditions by publishing in this Public Notice in special\ncircumstances.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_to_Avail_IEC_for_Vehicle_Business_under_EXIM_Policy\"><\/span>Procedure to Avail IEC for Vehicle Business under EXIM Policy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Procedure-to-Avail-IEC-for-Vehicle-Business-under-EXIM-Policy.png\" alt=\"Procedure to Avail IEC for Vehicle Business\" class=\"wp-image-21884\" width=\"545\" height=\"697\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Procedure-to-Avail-IEC-for-Vehicle-Business-under-EXIM-Policy.png 704w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/Procedure-to-Avail-IEC-for-Vehicle-Business-under-EXIM-Policy-234x300.png 234w\" sizes=\"(max-width: 545px) 100vw, 545px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Documents required to Avail\nIEC Number<\/h3>\n\n\n\n<ul><li>PAN of the company or the person.<\/li><li>Individual&#8217;s voter ID, passport or Aadhar card copy.<\/li><li>Cancel cheque copy of the person or company.&nbsp;<\/li><li>Copy of utility bill (electrical, gas, or water bill) or Rent Agreement of the premise.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Indian EXIM Policy encloses\nseveral policy-related decisions taken by the Indian Government in the sphere\nof Foreign Trade, i.e., w.r.t import &amp; exports from the country &amp;\nexport promotion measures, procedures, and policies related thereto. Trade\npolicy is outlined by the central government in association with the Ministry\nof Commerce. <\/p>\n\n\n\n<p>India&#8217;s EXIM policy is also regarded as Foreign Trade Policy which aims at improving export performance, developing export potential, encouraging and foreign trade. One has to take every precise detail into the account while importing a vehicle from an overseas client. Connect with <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz <\/strong><\/a>professional if you need some technical guidance or services on the IEC. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/how-the-iec-for-startup-could-be-beneficial-in-india\/\">How the IEC for Startup could be Beneficial in India?\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shipping vehicles from the overseas location could be an intimidating task for any new importer. If you wish to enter into the business of global trading then you must ascertain legal obligations associated with this form of business. Import Export Code is one such prerequisite that every individual has to avail who is looking to [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":21888,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[165],"tags":[1319],"acf":{"service_id":"16"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":2788,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21879"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=21879"}],"version-history":[{"count":21,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21879\/revisions"}],"predecessor-version":[{"id":56299,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/21879\/revisions\/56299"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/21888"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=21879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=21879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=21879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}