Vehicles principally designed for transport of more than seven persons, including driver

Hybrid petrol-electric motor vehicles for more than seven persons

DGFT CLEARANCE

HSN 8703 40 10 covers non-plug-in hybrid passenger vehicles designed for more than seven persons (including the driver) and is subject to the ITC (HS) import policy administered by the Directorate General of Foreign Trade (DGFT), with separate policy conditions governing new vehicles (Conditions 2, 7 and 9 of Chapter 87) and second-hand or used vehicles (Condition 1 of Chapter 87). Registration of imported vehicles must comply with the Central Motor Vehicles (Eleventh Amendment) Rules, 2018.

What this is

HSN code

8703 40 10

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 licence from DGFT
Policy condition compliance from DGFT
Vehicle registration compliance from MoRTH

Compliance steps

1
For new vehicles, confirm compliance with ITC (HS) Chapter 87 Policy Conditions 2, 7 and 9 before filing the bill of entry. For second-hand or used vehicles, comply with Policy Condition 1 of Chapter 87. Applicable exemptions are set out in Policy Conditions 3, 4, 5, 6 and 11.
ITC (HS) Chapter 87 Policy Conditions 1, 2, 7 and 9 · DGFT
2
Ensure the imported vehicle is registered in accordance with the Central Motor Vehicles (Eleventh Amendment) Rules, 2018 (GSR 870(E) dated 13-09-2018). Imports by manufacturers, their authorised representatives, or organisations and citizens for personal use, demonstration, testing, research or scientific purposes must each satisfy Policy Condition 12.
GSR 870(E) dated 13-09-2018 · DGFT Notification 14/2015-20 dated 28-08-2019 · ITC (HS) Chapter 87 Policy Condition 12
3
Where the vehicle qualifies as a Vintage Motor Vehicle, note that DGFT Notification 58/2024-25 dated 07-02-2025 amended Condition 1(iii) to permit import as Free for actual users. Verify the vintage classification criteria before relying on this exemption at the bill of entry.
DGFT Notification 58/2024-25 dated 07-02-2025 · ITC (HS) Chapter 87 Policy Condition 1(iii)

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 consignment, or vice versa — the two tracks carry distinct conditions and distinct documentation requirements under Chapter 87. A mismatch between the declared vehicle status and the applicable policy condition results in consignment detention pending re-examination, and retrospective enforcement under the ITC (HS) policy may follow. Confirm the vehicle's new or used status and the correct policy condition before the purchase order is placed.

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Frequently asked

Does HSN 8703 40 10 require BIS certification?

No, no BIS Quality Control Order covers this non-plug-in hybrid passenger vehicle category. Import is governed by the ITC (HS) import policy administered by the Directorate General of Foreign Trade under Chapter 87 policy conditions, with vehicle registration compliance under the Central Motor Vehicles (Eleventh Amendment) Rules, 2018.

Which policy conditions apply to second-hand or used vehicles under this HSN?

Second-hand or used vehicles are subject exclusively to Policy Condition 1 of Chapter 87 of the ITC (HS); new vehicles fall under Policy Conditions 2, 7 and 9, with exemptions available under Conditions 3, 4, 5, 6 and 11.

Does the Vintage Motor Vehicle exemption apply to non-plug-in hybrid vehicles classified under HSN 8703 40 10?

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; importers must confirm the vehicle meets the vintage classification criteria before claiming this exemption at the bill of entry.

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