Other

Non-plug-in hybrid passenger vehicles (spark-ignition plus electric motor)

DGFT CLEARANCE

HSN 8703 40 90 covers passenger motor vehicles combining a spark-ignition reciprocating piston engine with an electric motor for propulsion, where the electric motor cannot be charged from an external power source. The Directorate General of Foreign Trade (DGFT) governs import under ITC (HS) Policy Conditions 2, 7 and 9 of Chapter 87 for new vehicles, and Policy Condition 1 for second-hand or used vehicles.

What this is

HSN code

8703 40 90

Chapter

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

Primary regulator

DGFT · ITC (HS) import policy, Chapter 87 (Policy Conditions 1, 2, 7, 9, 10)

Customs documentation

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

Compliance steps

1
Identify the applicable policy track before filing: new vehicles must comply with ITC (HS) Policy Conditions 2, 7 and 9 of Chapter 87; second-hand or used vehicles are subject to Policy Condition 1; customised cars and parts attract Policy Condition 10. Review Policy Conditions 3, 4, 5, 6 and 11 for available exemptions and confirm the correct classification at the bill of entry.
ITC (HS) Policy Conditions 1, 2, 7, 9 and 10 of Chapter 87 · DGFT ITC (HS) Schedule I
2
Ensure registration of imported vehicles complies with the Central Motor Vehicles (Eleventh Amendment) Rules, 2018, whether imported by manufacturers or their authorised representatives, or by organisations and individuals for personal use, demonstration, testing, research or scientific purposes. Upload supporting evidence of compliance at the bill of entry.
GSR 870(E) dated 13-09-2018 · DGFT Notification 14/2015-20 dated 28-08-2019
3
If importing vintage motor vehicles, note that DGFT Notification 58/2024-25 dated 07-02-2025 amended Policy Condition 1(iii): vintage motor vehicles are now Free for import by actual users. Obtain and retain documentary evidence of vintage-vehicle status to support the Free-import classification at the bill of entry.
DGFT Notification 58/2024-25 dated 07-02-2025

A word of counsel

The most common error on this tariff line is conflating the policy track for new vehicles with that for second-hand or used vehicles. The two tracks carry distinct conditions and documentation requirements under Chapter 87, and filing under the wrong policy condition — even unintentionally — results in consignment detention and DGFT-policy enforcement. Confirm the vehicle's new-or-used status and the applicable exemption conditions before the purchase order is placed, as rectification after the bill of lading is issued is procedurally burdensome.

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Frequently asked

Does HSN 8703 40 90 require BIS certification?

No, no BIS Quality Control Order covers this vehicle category. Import is governed by the Directorate General of Foreign Trade under ITC (HS) Policy Conditions 1, 2, 7 and 9 of Chapter 87, with registration requirements under the Central Motor Vehicles (Eleventh Amendment) Rules, 2018.

Which policy conditions apply when importing second-hand hybrid vehicles under this HSN?

Second-hand or used vehicles fall under Policy Condition 1 of Chapter 87; the new-vehicle conditions (2, 7 and 9) do not apply. Vintage motor vehicles meeting the criteria in amended Policy Condition 1(iii) are Free for import by actual users per DGFT Notification 58/2024-25 dated 07-02-2025.

Are there exemptions from the standard Chapter 87 policy conditions for this tariff line?

Yes. Policy Conditions 3, 4, 5, 6 and 11 of Chapter 87 provide specific exemptions; importers should verify whether their end-use — demonstration, testing, research, scientific use, or authorised-representative import — qualifies under any of those conditions before filing.

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