Motor cars

Passenger motor cars, 1500cc to 3000cc engine capacity

DGFT CLEARANCE

HSN 8703 23 91 (Motor cars, 1,500–3,000 cc) is governed by the Directorate General of Foreign Trade (DGFT) ITC (HS) import policy under Policy Conditions 1, 2, 7, 9, 10, and 12 of Chapter 87, with separate conditions applying to new vehicles, second-hand or used vehicles, and customised cars. Registration of imported vehicles must additionally comply with the Central Motor Vehicles (Eleventh Amendment) Rules, 2018 notified by the Ministry of Road, Transport and Highways.

What this is

HSN code

8703 23 91

Chapter

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

Primary regulator

DGFT · ITC (HS) policy conditions, Chapter 87 (new, used, and customised vehicle tracks)

Customs documentation

Import Licence from DGFT
Registration compliance declaration from MoRTH
Policy condition compliance from DGFT

Compliance steps

1
Determine the applicable policy track before filing the bill of entry: new vehicles attract Policy Conditions 2, 7 and 9 of Chapter 87; second-hand or used vehicles attract Policy Condition 1; customised cars and motorcycles attract Policy Condition 10. Exemptions under Policy Conditions 3, 4, 5, 6 and 11 must be documented where claimed.
ITC (HS) Policy Conditions 1, 2, 7, 9, 10 of Chapter 87 · DGFT
2
Ensure registration compliance under the Central Motor Vehicles (Eleventh Amendment) Rules, 2018 (GSR 870(E) dated 13-09-2018) for vehicles imported by manufacturers, their authorised representatives, or organisations and citizens for personal use, demonstration, testing, research or scientific purposes. Vintage motor vehicles are free for import by actual users following the amendment under DGFT Notification 58/2024-25 dated 07-02-2025.
GSR 870(E) dated 13-09-2018 · DGFT Notification 14/2015-20 dated 28-08-2019 · 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 second-hand or used vehicle consignment, or vice versa. Policy Condition 1 governs used vehicles under a distinctly different approval pathway from Policy Conditions 2, 7 and 9 for new vehicles; a misclassification between the two tracks at the bill-of-entry stage results in consignment detention and demand for re-filing, attracting demurrage and ground rent. The exemption provisions under Conditions 3, 4, 5, 6 and 11 are purpose-specific and must be supported by documentary evidence of the qualifying end-use.

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Frequently asked

Does HSN 8703 23 91 require BIS certification?

No, passenger motor cars in the 1,500–3,000 cc bracket are not within the BIS Quality Control Order regime. Import is governed by the Directorate General of Foreign Trade under the ITC (HS) policy conditions of Chapter 87, with separate tracks for new, second-hand, and customised vehicles.

What changed for vintage motor vehicles under DGFT Notification 58/2024-25?

DGFT Notification 58/2024-25 dated 07-02-2025 amended Policy Condition 1(iii) to make vintage motor vehicles free for import by actual users, removing the earlier restriction that applied to that sub-category.

Are there exemptions from the Chapter 87 policy conditions for specific importers?

Yes. Policy Conditions 3, 4, 5, 6 and 11 of Chapter 87 set out purpose-specific and importer-category exemptions; qualifying importers must document the applicable exemption basis and present it at the bill-of-entry stage to avoid Restricted-import enforcement.

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