Motor cars

Motor cars with 1,500 cc to 2,500 cc petrol engine

DGFT CLEARANCE

HSN 8703 32 91 (Motor cars) is subject to the ITC (HS) import policy administered by the Directorate General of Foreign Trade (DGFT), with distinct policy conditions governing new vehicles, second-hand or used vehicles, and customised cars. New vehicle imports are subject to Policy Conditions 2, 7 and 9 of Chapter 87; used vehicle imports are subject to Policy Condition 1; and registration of imported vehicles must comply with the Central Motor Vehicles (Eleventh Amendment) Rules, 2018.

What this is

HSN code

8703 32 91

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
Vehicle registration certificate from Ministry of Road Transport
Policy condition declaration to CBIC

Compliance steps

1
Determine the applicable policy condition before filing the bill of entry: new vehicles are governed by Policy Conditions 2, 7 and 9 of Chapter 87; second-hand or used vehicles by Policy Condition 1; customised cars and motorcycles by Policy Condition 10. Review Policy Conditions 3, 4, 5, 6 and 11 to confirm whether an exemption applies to the specific consignment.
ITC (HS) Chapter 87 Policy Conditions 1, 2, 7, 9 and 10
2
Ensure registration compliance under the Central Motor Vehicles (Eleventh Amendment) Rules, 2018 for vehicles imported by manufacturers, their authorised representatives, or organisations and citizens importing for personal use, demonstration, testing, research or scientific purposes. Note that vintage motor vehicles are classified as Free for import by actual users following the amendment.
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 new-vehicle policy conditions to a second-hand or used vehicle consignment, or vice versa — the two regimes carry materially different entry requirements and the distinction is assessed at the bill-of-entry stage, not at arrival. Importers should also verify whether the intended use (personal, demonstration, research, or commercial resale) qualifies under an exemption in Policy Conditions 3, 4, 5, 6 or 11, as a post-clearance use change can trigger retrospective policy-condition enforcement by DGFT.

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Frequently asked

Does HSN 8703 32 91 require BIS certification?

No, motor cars in this displacement bracket are not covered by a BIS Quality Control Order. Import is governed by the ITC (HS) policy conditions under Chapter 87 administered by the Directorate General of Foreign Trade, with distinct conditions for new, used, and customised vehicles.

Are vintage motor vehicles under this HSN subject to the standard Policy Condition 1 for used vehicles?

No. Following DGFT Notification 58/2024-25 dated 07-02-2025, which amended Condition 1(iii), vintage motor vehicles are classified as Free for import by actual users and are not subject to the standard used-vehicle policy restriction.

What happens if an imported vehicle is used for a purpose other than the one declared at the bill of entry?

A post-clearance diversion from the declared purpose — such as selling a vehicle imported for personal use or research — converts the import into a policy-condition breach, attracting DGFT enforcement including monetary penalty and potential confiscation under the Foreign Trade (Development and Regulation) Act, 1992.

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