Other

Petrol engine passenger cars up to 1,500 cc cylinder capacity

DGFT CLEARANCE

HSN 8703 31 99 (passenger motor vehicles with petrol engines not exceeding 1,500 cc, residual category) is subject to ITC (HS) policy conditions administered by the Directorate General of Foreign Trade (DGFT) under Chapter 87 of the ITC (HS) 2022. New vehicles are governed by Policy Conditions 2, 7 and 9; second-hand or used vehicles by Policy Condition 1; and customised cars by Policy Condition 10, with exemptions available under Policy Conditions 3, 4, 5, 6 and 11.

What this is

HSN code

8703 31 99

Chapter

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

Primary regulator

DGFT · ITC (HS) import policy conditions, Chapter 87

Customs documentation

Policy condition compliance from DGFT
Vehicle registration compliance from MoRTH
Import declaration from CBIC

Compliance steps

1
Identify the correct sub-regime before filing the bill of entry: new vehicles require compliance with Policy Conditions 2, 7 and 9 of Chapter 87; second-hand or used vehicles require compliance with Policy Condition 1; customised cars and motorcycles require compliance with Policy Condition 10. Confirm applicable exemptions under Policy Conditions 3, 4, 5, 6 and 11.
ITC (HS) 2022, Chapter 87, Policy Conditions 1, 2, 7, 9 and 10
2
Ensure vehicle registration at the bill-of-entry stage complies with the Central Motor Vehicles (Eleventh Amendment) Rules, 2018 where the importer is a manufacturer, authorised representative, organisation, or citizen 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
For imports of vintage motor vehicles, 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 vintage status before filing to avoid misapplication of the Restricted-import policy and consequent detention.
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 — at the bill of entry stage. Policy Condition 1 (used/second-hand) and Policy Conditions 2, 7 and 9 (new vehicles) are mutually exclusive tracks, and misclassification between them triggers Restricted-import enforcement, consignment detention and potential re-export at the importer's cost. Verify the vehicle condition and the applicable policy track before placing the purchase order, not at the port of arrival.

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Frequently asked

Does HSN 8703 31 99 require BIS certification?

No, no BIS Quality Control Order covers this passenger vehicle tariff line. Import is governed by the ITC (HS) policy conditions under Chapter 87 administered by the Directorate General of Foreign Trade, with separate tracks for new, second-hand, and customised vehicles.

Which policy condition governs the import of second-hand or used passenger cars under this HSN?

Policy Condition 1 of Chapter 87 of the ITC (HS) 2022 governs used and second-hand vehicle imports; DGFT Notification 58/2024-25 dated 07-02-2025 amended Condition 1(iii) to make vintage motor vehicles Free for import by actual users.

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

Yes. Policy Conditions 3, 4, 5, 6 and 11 provide specific exemptions; manufacturers or authorised representatives importing for demonstration, testing, research or scientific use must additionally comply with the Central Motor Vehicles (Eleventh Amendment) Rules, 2018 under GSR 870(E) dated 13-09-2018.

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