{"id":50981,"date":"2022-11-28T15:19:42","date_gmt":"2022-11-28T09:49:42","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=50981"},"modified":"2022-11-28T15:19:43","modified_gmt":"2022-11-28T09:49:43","slug":"how-to-get-permission-to-import-second-hand-equipment","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-to-get-permission-to-import-second-hand-equipment\/","title":{"rendered":"How to Get Permission to Import Second-Hand Equipment?"},"content":{"rendered":"\n<p>International\ntrade of second-hand equipment has been witnessing steady growth in the past\nfew years. India is amongst the prominent importer of used machinery and equipment\nglobally. Shipping such products in India are subjected to various legal\nimplications, which should be abided by the importers. Those who wish to import\nsuch products for <strong><em>commercial purposes <\/em><\/strong>in India must secure the <strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/iec-registration\">IEC certificate<\/a><\/strong> alongside <strong>import authorization <\/strong>and other legal\npermits. Both these permits cum licenses are granted by the Directorate General\nof Foreign Trade, aka DGFT. Let\u2019s find out how to get permission to import\nsecond-hand equipment. <\/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\/how-to-get-permission-to-import-second-hand-equipment\/#Role_of_Import-Export_Code_IEC_in_International_Trade\" >Role of Import-Export Code (IEC) in\nInternational Trade<\/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\/how-to-get-permission-to-import-second-hand-equipment\/#Why_do_I_need_Import_authorization_when_I_have_IEC_in_place_%E2%80%93_Import_Second-Hand_Equipment\" >Why do I need Import authorization when I have\nIEC in place? &#8211; Import Second-Hand Equipment<\/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\/how-to-get-permission-to-import-second-hand-equipment\/#Foreign_Trade_Policy_Norms_for_importing_second-hand_equipment\" >Foreign Trade Policy Norms for importing\nsecond-hand equipment<\/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\/how-to-get-permission-to-import-second-hand-equipment\/#What_do_you_mean_by_capital_goods\" >What do you mean by capital goods*?<\/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\/how-to-get-permission-to-import-second-hand-equipment\/#Other_paperwork_required_to_import_second-hand_equipment\" >Other\npaperwork required to import second-hand equipment<\/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\/how-to-get-permission-to-import-second-hand-equipment\/#How_to_apply_for_permission_to_import_second-hand_equipment_online\" >How to apply for permission to import\nsecond-hand equipment online?<\/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\/how-to-get-permission-to-import-second-hand-equipment\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_Import-Export_Code_IEC_in_International_Trade\"><\/span><strong>Role of Import-Export Code (IEC) in\nInternational Trade<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IEC\ncertification or IEC code is a 10-digit unique identification code assigned to\nthose who wish to commence import-export business in India. Directorate General\nof Foreign Trade, aka DGFT accords this code against duly-filed e-form and the\napplicable fee. IEC is among the fundamental legal permit required by the\nimporters and exporters in India. The applicant can visit the DGFT portal to\napply for IEC registration. While filling in details in the e-form, the\napplicant will be prompted to upload some mandatory documents as shown below:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_do_I_need_Import_authorization_when_I_have_IEC_in_place_%E2%80%93_Import_Second-Hand_Equipment\"><\/span><strong>Why do I need Import authorization when I have\nIEC in place? &#8211; Import Second-Hand Equipment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Import\nauthorization refers to a legal permit required for importing notified and\nrestricted products (including import second-hand equipment) listed under the Foreign\nTrade Policy (FTP). Take note that import authorization is not mandatory for\nproducts that fall outside ITC (HS) classification list. Having IEC alone is\nnot enough to import FTP\u2019s notified goods in India. The terms and conditions\nfor the grant of import authorization revolve around the following: <\/p>\n\n\n\n<ul><li>Description and quantity of goods to be shipped\nin India<\/li><li>The purpose of importing goods<\/li><li>Export obligation, if any<\/li><li>Proposed Minimum value addition, if any <\/li><li>Minimum import or export valuation <\/li><li>Bank guarantee or legal paperwork or bond with\nconcerned customs<\/li><li>Validity period.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Foreign_Trade_Policy_Norms_for_importing_second-hand_equipment\"><\/span><strong>Foreign Trade Policy Norms for importing\nsecond-hand equipment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Section 2.31\nof the Foreign Trade Policy underpins provisions concerning the import of\nsecond-hand equipment or goods in India. Below is the tabulated form enlisting\nproducts and their corresponding legal permits for importing second-hand goods.\n<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong><em>Serial\n  Number <\/em><\/strong>\n  <\/td><td>\n  <strong><em>Categories\n  of second-hand equipment <\/em><\/strong>\n  <\/td><td>\n  <strong><em>Import\n  Policy <\/em><\/strong>\n  <\/td><td>\n  <strong><em>Applicable\n  Conditions, if any <\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  1.\n  <\/td><td>\n  Personal\n  computers (PCs)\/ laptops including their reconditioned\/refurbished spares\n  <\/td><td>\n  Restricted \n  <\/td><td>\n  Authorization\n  required for import \n  <\/td><\/tr><tr><td>\n  2.\n  <\/td><td>\n  Photocopier\n  machines\/ Digital Multifunction Print &amp; Copying Machines\n  <\/td><td>\n  Restricted\n  <\/td><td>\n  Authorization\n  required for import \n  <\/td><\/tr><tr><td>\n  3 \n  <\/td><td>\n  Air\n  conditioners (ACs)\n  <\/td><td>\n  Restricted\n  <\/td><td>\n  Authorization\n  required for import \n  <\/td><\/tr><tr><td>\n  4.\n  <\/td><td>\n  &nbsp;Diesel generating (DG) sets.\n  <\/td><td>\n  Restricted\n  <\/td><td>\n  Authorization\n  required for import \n  <\/td><\/tr><tr><td>\n  5.\n  <\/td><td>\n  Re-conditioned\/Refurbished&nbsp; spares of Capital Goods\n  <\/td><td>\n  Free \n  <\/td><td>\n  Subject to\n  the production of a (CEE) i.e. Chartered Engineer certificate to the effect\n  that such spares adhere to at least 80 percent residual life of original\n  spare.\n  <\/td><\/tr><tr><td>\n  6.\n  <\/td><td>\n  All other\n  second-hand <strong><em>capital goods*<\/em><\/strong> {other than (a) &amp; (b) above}\n  <\/td><td>\n  Free \n  <\/td><td>\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  7. \n  <\/td><td>\n  Second-Hand\n  Goods other thancapital goods\n  <\/td><td>\n  Restricted\n  <\/td><td>\n  Authorization\n  required for import \n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_you_mean_by_capital_goods\"><\/span><strong>What do you mean by capital goods*? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Capital\ngoods refer to a company\u2019s physical assets without which no production process\ncan come into effect. Sometimes these goods are referred to as property, plant,\nand equipment (PPE). To understand clearly what exactly capital goods mean,\nlet\u2019s take an example of a pizza hub. <\/p>\n\n\n\n<p>The pizza\nhub consolidates several assets such as counter, furniture, oven, utensils, and\nso on, which makes it operational. These assets are known as capital goods. In\nthe manufacturing sphere, capital goods are known as a subset of a finished\ngood. Simply put, they act as a spare for finished goods that make them\nfunctional. A capital good is a broad term that consolidates countless\nproducts, including used spares and parts, but not finished products. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_paperwork_required_to_import_second-hand_equipment\"><\/span><strong>Other\npaperwork required to import second-hand equipment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following is\nthe paperwork required to import second-hand equipment: <\/p>\n\n\n\n<ul><li>Bill of Entry<\/li><li>Packing List<\/li><li>Commercial invoice<\/li><li>Foreign Exchange Control Form (Form A-1)<\/li><li>Bill of Lading<\/li><li>Certified Engineer\u2019s Report<\/li><li>Terminal Handling Receipt<\/li><li>Product Manual<\/li><li>Cargo Release Order<\/li><li>Inspection report<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_apply_for_permission_to_import_second-hand_equipment_online\"><\/span><strong>How to apply for permission to import\nsecond-hand equipment online? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following is the procedure\nto apply for permission to import second-hand\nequipment online:<\/p>\n\n\n\n<ul><li>Head to the DGFT portal and completes the registration formalities via OTP validation.<\/li><li>Use the temporary credentials received on the registered email id or phone to log in to the portal <\/li><li>Head to the services and choose the import Management system.<\/li><li>Next, choose option- \u201cRestricted Imports\u201d. This will lead you to a new window where the e-form for authorization will be accessible. <\/li><li>Once the e-form appears on your screen, fill in legitimate details about the firm, import, and port. <\/li><li>Add available licenses or registration, if needed.<\/li><li>Enter the purpose of import under the port details<\/li><li>After filling in all the details, head to the payment section for the fee submission<\/li><li>Post payment, note down the acknowledgment number for application tracking.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One must know the above conditions to import second-hand equipment in India. Although the <strong>Foreign Trade Policy<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.dgft.gov.in\/CP\/?opt=ft-policy\"><strong>[1]<\/strong><\/a><\/sup> entails relaxed norms for imports, there is some limitation on which products make their way into the Indian Territory. Needless to say that severe penalties would come into effect if someone tries to ship notified products without authorization. <\/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-to-get-iec-code-in-india\/\">How to obtain IEC Code in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>International trade of second-hand equipment has been witnessing steady growth in the past few years. India is amongst the prominent importer of used machinery and equipment globally. Shipping such products in India are subjected to various legal implications, which should be abided by the importers. Those who wish to import such products for commercial purposes [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":50982,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[165],"tags":[2907],"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":10505,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50981"}],"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=50981"}],"version-history":[{"count":2,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50981\/revisions"}],"predecessor-version":[{"id":50984,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50981\/revisions\/50984"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/50982"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=50981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=50981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=50981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}