Other, air-conditioned

Air-conditioned diesel-electric hybrid buses and coaches

DGFT CLEARANCE

HSN 8702 20 18 (Other, air-conditioned) is subject to the Directorate General of Foreign Trade (DGFT) import policy, with import of new vehicles governed by Policy Conditions 2, 7 and 9 of Chapter 87 of the ITC (HS). Second-hand or used vehicles are subject to the more restrictive Policy Condition 1, and registration of all imported vehicles must comply with the Central Motor Vehicles (Eleventh Amendment) Rules, 2018.

What this is

HSN code

8702 20 18

Chapter

87 · Vehicles other than railway or tramway rolling-stock; parts and accessories

Primary regulator

DGFT · ITC (HS) import policy, Chapter 87 Policy Conditions

Customs documentation

Policy condition compliance from DGFT
Vehicle registration compliance from Ministry of Road Transport
Import declaration from CBIC

Compliance steps

1
Verify the applicable Policy Condition before filing the bill of entry: new vehicles must satisfy Policy Conditions 2, 7 and 9 of Chapter 87; second-hand or used vehicles must satisfy Policy Condition 1. Consult Policy Conditions 3, 4, 5, 6 and 11 to determine whether any exemption applies to the specific importer category or end-use.
ITC (HS) Chapter 87 Policy Conditions 1, 2, 7 and 9 · DGFT Notification 14/2015-20 dated 28-08-2019
2
Ensure the vehicle is registered in compliance with the Central Motor Vehicles (Eleventh Amendment) Rules, 2018 (GSR 870(E) dated 13-09-2018) for imports by manufacturers, their authorised representatives, or organisations and citizens importing for personal use, demonstration, testing, research or scientific purposes.
GSR 870(E) dated 13-09-2018 · Ministry of Road Transport and Highways · DGFT Notification 14/2015-20 dated 28-08-2019
3
Note that DGFT Notification 58/2024-25 dated 07-02-2025 amended Policy Condition 1(iii): Vintage Motor Vehicles are now Free for import by actual users. Confirm whether the vehicle qualifies as a vintage motor vehicle before applying the second-hand-vehicle policy track.
DGFT Notification 58/2024-25 dated 07-02-2025

A word of counsel

The most common error on this tariff line is applying the new-vehicle policy conditions to a consignment that customs classifies as second-hand, or vice versa. A vehicle that has been registered, used, or even briefly operated abroad may be treated as second-hand, subjecting it to the materially stricter Policy Condition 1 regardless of the importer's characterisation. Confirm the vehicle's status and the applicable policy track before the purchase order is placed, not at the port of entry.

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Frequently asked

Does HSN 8702 20 18 require BIS certification?

No, no BIS Quality Control Order covers this product family. Import of these diesel-electric hybrid buses is governed by the ITC (HS) Chapter 87 Policy Conditions administered by the Directorate General of Foreign Trade, with registration compliance required under the Central Motor Vehicles (Eleventh Amendment) Rules, 2018.

Which policy conditions apply to new versus second-hand vehicles under this tariff line?

New vehicles are subject to Policy Conditions 2, 7 and 9 of Chapter 87; second-hand or used vehicles are subject to Policy Condition 1. Exemptions may be available under Policy Conditions 3, 4, 5, 6 and 11 depending on importer category and end-use.

Does the vintage-vehicle amendment under DGFT Notification 58/2024-25 affect this tariff line?

Yes. DGFT Notification 58/2024-25 dated 07-02-2025 amended Policy Condition 1(iii) to allow Vintage Motor Vehicles Free import by actual users, providing a carve-out from the otherwise restricted second-hand-vehicle regime where the vehicle qualifies as vintage.

Last verified against gazette notifications: 2026-05-16. Source: DGFT / Indian Customs CUSDATA.