In re VinFast Auto India Private Limited (CAAR Delhi)
M/s. VinFast Auto India Private Limited filed an application before the Customs Authority for Advance Rulings, New Delhi under Section 28H of the Customs Act, 1962, seeking clarity on the customs classification and applicable duty for various goods proposed to be imported for manufacturing electric vehicles (EVs) in India. The application was registered on 12.08.2025.
The applicant is engaged in manufacturing and assembling electric SUVs at its facility in Thoothukudi, Tamil Nadu, pursuant to a Memorandum of Understanding with the Government of Tamil Nadu. For this purpose, it proposes to import a large number of individual components—approximately 2,870 items—such as high-voltage batteries, electric motors, unpainted body panels, chassis parts, interior and exterior parts, safety components, and fasteners. These goods are imported as standalone items, at different points in time, in varying and mismatched quantities, and are not imported as a set, kit, or pre-assembled combination. Significant manufacturing processes such as welding, painting, calibration, and assembly are undertaken in India before a complete electric vehicle emerges.
The applicant raised two questions. First, whether the individual goods imported at different times should be classified based on their individual nature and functionality under their respective tariff headings in the Customs Tariff Act, 1975. Second, if not so classified, whether such disjointed and disassembled imports would be eligible for a concessional basic customs duty rate of 15% under Entry No. 526A of Notification No. 50/2017-Cus. (later superseded by Notification No. 45/2025-Cus., Entry No. 318).
