Introduction: The Directorate General of Foreign Trade (DGFT), an agency of the Ministry of Commerce and Industry, Government of India, has recently announced an important update to the import policy concerning new vehicles. Through Notification No. 59/2023-DGFT, dated 12th February, 2024, the government has made a significant amendment by adding Mundra Port and ICD Garhi Harsaru to the list of authorized ports and Inland Container Depots (ICDs) for the import of new vehicles. This decision reflects the government’s ongoing efforts to streamline import processes and facilitate trade.
Detailed Analysis: Prior to this amendment, the import of new vehicles was restricted to a specific list of 16 ports and ICDs across India. The inclusion of Mundra Port and ICD Garhi Harsaru expands this list to 18, providing importers with more options and potentially reducing logistics costs and time. This strategic move is likely to have a positive impact on the automotive sector, enhancing the efficiency of vehicle imports.
Mundra Port, located in the state of Gujarat, is one of India’s largest and fastest-growing seaports, known for its state-of-the-art facilities and deep draft. ICD Garhi Harsaru, situated in Haryana, serves as a critical node for cargo movement in the northern region. The addition of these two entry points is expected to significantly benefit importers in these regions, offering them direct access to international markets.
The notification specifies that the import of new vehicles is now permitted through the following Customs ports: Nhava Sheva, Mumbai, Kolkata, Chennai, Ennore, Cochin, Kattupalli, APM Terminals Pipavav, Krishnapatnam, Vishakhapatnam, Mundra for seaports; Mumbai Air Cargo Complex, Delhi Air Cargo, Chennai Airport for airports; and Talegaon Pune, Tughlakabad, Faridabad, Garhi Harsaru for ICDs.
Conclusion: The DGFT’s recent notification marks a progressive step towards enhancing India’s import infrastructure for new vehicles. By expanding the list of authorized ports and ICDs, the government not only aims to simplify the import process but also intends to boost the automotive industry’s growth. Importers should familiarize themselves with this update and adjust their logistics strategies accordingly. The addition of Mundra Port and ICD Garhi Harsaru is expected to streamline vehicle imports, benefiting the entire supply chain from manufacturers to end consumers.
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Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Notification No. 59/2023-DGFT | Dated: 12th February, 2024
Subject: Addition of Mundra Port and ICD Garhi Harsaru for import of new Vehicles-reg.
S.O. 632(E).: In exercise of powers conferred by Section 3 and Section 5 of Foreign Trade (Development &Regulation) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy 2023, as amended from time to time, the Central Government hereby amends the import policy condition 2 (II) (d) of Chapter 87 of ITC (HS) 2022, Schedule1 (Import Policy) as under with immediate effect:
2. Mundra Port and ICD Garhi Harsaru are added to the existing list of 16 ports/ICDs through which import of new vehicles is permitted under Policy Condition 2(II)(d) of Chapter 87 of ITC (HS) 2022, Schedule 1 (Import Policy). Accordingly, Policy Condition 2(II)(d) of Chapter 87 is revised to read as under:
“The import of new vehicles shall be permitted only through the following Customs ports:
Seaports- (i) Nhava Sheva, (ii) Mumbai, (iii) Kolkata, (iv) Chennai, (v) Ennore, (vi) Cochin, (vii) Kattupalli, (viii) APM Terminals Pipavav, (ix) Krishnapatnam, (x) Vishakhapatnam, (xi) Mundra
Airports- (xii) Mumbai Air Cargo Complex, (xiii) Delhi Air Cargo, (xiv) Chennai Airport; and
ICDs- (xv) Talegaon Pune, (xvi) Tughlakabad, (xvii) Faridabad, (xviii) Garhi Harsaru
Effect of the Notification: Mundra Port and ICD Garhi Harsaru are being added to the list of 16 existing ports/ICDs, thereby taking the total number of ports/ICDs to 18, for importing new vehicles.
This is issued with the approval of Minister of Commerce & Industry.
(Santosh Kumar Sarangi)
Director General of Foreign Trade
& Ex-officio Addl. Secretary to Govt. of India
Email: [email protected]
(Issued from File No. 01/89/180/30/AM-13/PC-2[A]./E-1467)
