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

Diesel-electric hybrid vehicles for more than seven persons

DGFT CLEARANCE

HSN 8703 50 10 covers motor vehicles with both a compression-ignition (diesel or semi-diesel) piston engine and an electric motor for propulsion — not capable of external plug-in charging — designed to transport more than seven persons including the driver, and is subject to ITC (HS) policy conditions administered by the Directorate General of Foreign Trade (DGFT) under Chapter 87. New vehicles are governed by Policy Conditions 2, 7 and 9; used or second-hand vehicles are governed by Policy Condition 1; and Policy Conditions 3, 4, 5, 6 and 11 specify applicable exemptions.

What this is

HSN code

8703 50 10

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 compliance declaration from DGFT
Vehicle registration compliance from MoRTH
Authorised Representative certificate from importer

Compliance steps

1
Determine the import category — new vehicle, second-hand or used vehicle, or customised vehicle — before filing the bill of entry, and ensure compliance with the applicable Chapter 87 policy condition. New vehicles must satisfy Policy Conditions 2, 7 and 9; second-hand or used vehicles must satisfy Policy Condition 1; customised cars and parts must satisfy Policy Condition 10.
ITC (HS) Chapter 87 Policy Conditions 1, 2, 7, 9 and 10 · DGFT
2
Ensure that registration of vehicles imported by manufacturers, their authorised representatives, or by organisations and citizens for personal use, demonstration, testing, research or scientific use complies with the Central Motor Vehicles (Eleventh Amendment) Rules, 2018. Verify applicability of exemptions under Policy Conditions 3, 4, 5, 6 and 11 before filing.
Central Motor Vehicles (Eleventh Amendment) Rules, 2018 · GSR 870(E) dated 13-09-2018 · DGFT Notification 14/2015-20 dated 28-08-2019
3
For imports of vintage motor vehicles by actual users, note that the import category is Free following the amendment to Policy Condition 1(iii). Confirm the vehicle qualifies under the vintage-vehicle definition before claiming the Free status, as misclassification attracts Restricted-import enforcement.
DGFT Notification 58/2024-25 dated 07-02-2025

A word of counsel

The most common error on this tariff line is conflating the new-vehicle policy-condition track (Conditions 2, 7 and 9) with the used-vehicle track (Condition 1), particularly for vehicles arriving via grey-market or parallel-import channels. A new vehicle routed under the used-vehicle condition — or vice versa — results in Restricted-import enforcement, consignment detention, and potential re-export at the importer's cost; exemption claims under Conditions 3, 4, 5, 6 and 11 must be documented in advance, not presented as a post-detention remedy.

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Frequently asked

Does HSN 8703 50 10 require BIS certification?

No, this tariff line is not covered by a BIS Quality Control Order. Import is governed by ITC (HS) Chapter 87 policy conditions administered by the Directorate General of Foreign Trade, with vehicle-registration compliance required under the Central Motor Vehicles (Eleventh Amendment) Rules, 2018.

Which policy conditions apply to a second-hand diesel-electric hybrid minibus under this HSN?

Second-hand or used vehicles under HSN 8703 50 10 are subject exclusively to Policy Condition 1 of Chapter 87 of the ITC (HS), as amended by DGFT Notification 58/2024-25 dated 07-02-2025 for the vintage-motor-vehicle carve-out under sub-condition 1(iii).

Can an organisation import this vehicle for testing or research purposes without satisfying the standard new-vehicle policy conditions?

Potentially yes — Policy Conditions 3, 4, 5, 6 and 11 provide exemptions for specified purposes including demonstration, testing and scientific use, but compliance with the Central Motor Vehicles (Eleventh Amendment) Rules, 2018 and GSR 870(E) dated 13-09-2018 is required for registration regardless of the exemption claimed.

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