Other, air-conditioned

Electric buses and coaches, air-conditioned (10 or more persons)

DGFT CLEARANCE

HSN 8702 40 18 covers air-conditioned motor vehicles with only electric motor propulsion, seating ten or more persons including the driver, and is subject to the ITC (HS) import policy administered by the Directorate General of Foreign Trade (DGFT) under Policy Conditions 2, 7 and 9 of Chapter 87 for new vehicles. Second-hand or used vehicles of this description are governed by Policy Condition 1 of Chapter 87, while registration of imported vehicles must comply with the Central Motor Vehicles (Eleventh Amendment) Rules, 2018.

What this is

HSN code

8702 40 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

Import policy compliance from DGFT
Registration compliance from Ministry of Road Transport
Authorised Representative declaration from importer

Compliance steps

1
Verify the applicable policy condition before filing the bill of entry: new electric buses are subject to Policy Conditions 2, 7 and 9 of Chapter 87; second-hand or used vehicles are subject to Policy Condition 1 of Chapter 87. Review Policy Conditions 3, 4, 5, 6 and 11 to determine whether any exemption applies to the specific consignment.
ITC (HS) import policy, Chapter 87 Policy Conditions 1, 2, 7 and 9; exemptions under Policy Conditions 3, 4, 5, 6 and 11
2
Ensure the vehicle is imported by the manufacturer or its Authorised Representative in India, or by an organisation or citizen for personal use, demonstration, testing, research or scientific use, and confirm registration compliance with the Central Motor Vehicles (Eleventh Amendment) Rules, 2018 under GSR 870(E) dated 13-09-2018 read with DGFT Notification 14/2015-20 dated 28-08-2019.
GSR 870(E) dated 13-09-2018, Ministry of Road Transport and Highways · DGFT Notification 14/2015-20 dated 28-08-2019
3
If the consignment involves a vintage motor vehicle, note that DGFT Notification 58/2024-25 dated 07-02-2025 amended Policy Condition 1(iii) to classify vintage motor vehicles as Free for import by actual users; confirm whether the vehicle meets the vintage classification before applying the restricted-import procedure.
DGFT Notification 58/2024-25 dated 07-02-2025 · ITC (HS) Chapter 87 Policy Condition 1(iii)

A word of counsel

The single most common error on this tariff line is conflating the policy condition applicable to new vehicles with that applicable to second-hand or used vehicles. The two tracks carry different documentary and eligibility requirements under Chapter 87 of the ITC (HS), and misclassification of a used vehicle as new — or vice versa — triggers consignment detention pending re-examination and re-submission of the correct policy-condition documentation, with attendant demurrage and ground rent liability.

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Frequently asked

Does HSN 8702 40 18 require BIS certification?

No, no BIS Quality Control Order covers this tariff line. Import of air-conditioned electric buses and coaches of ten or more persons is governed by the ITC (HS) import policy administered by the Directorate General of Foreign Trade under Chapter 87 Policy Conditions 2, 7 and 9 for new vehicles.

Which policy conditions govern the import of second-hand electric buses under this HSN?

Second-hand or used vehicles under HSN 8702 40 18 are subject to Policy Condition 1 of Chapter 87 of the ITC (HS), as distinct from Policy Conditions 2, 7 and 9 that apply to new vehicles; exemptions may be available under Policy Conditions 3, 4, 5, 6 and 11.

Does the vintage motor vehicle exemption introduced by DGFT Notification 58/2024-25 apply to electric buses under this HSN?

The amendment to Policy Condition 1(iii) under DGFT Notification 58/2024-25 dated 07-02-2025 designates vintage motor vehicles as Free for import by actual users, but importers must confirm the specific vehicle meets the vintage classification criteria before relying on the Free status rather than the Restricted-import procedure.

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