g.v.w. not exceeding 5 tonnes

Motor vehicles for goods transport, GVW not exceeding 5 tonnes

DGFT CLEARANCE

HSN 8704 21 00 (motor vehicles for the transport of goods, GVW not exceeding 5 tonnes) is subject to the ITC (HS) import policy administered by the Directorate General of Foreign Trade (DGFT), with distinct policy conditions governing new vehicles (Policy Conditions 2, 7 and 9 of Chapter 87) and second-hand or used vehicles (Policy 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

8704 21 00

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 and 9)

Customs documentation

Policy condition compliance from DGFT
Vehicle registration compliance from Ministry of Road Transport
Import licence or permit from DGFT

Compliance steps

1
Determine whether the consignment constitutes new vehicles or second-hand/used vehicles before filing the bill of entry. New vehicles must satisfy Policy Conditions 2, 7 and 9 of Chapter 87; second-hand or used vehicles must satisfy Policy Condition 1 of Chapter 87. Review Policy Conditions 3, 4, 5, 6 and 11 to confirm whether any exemption applies.
ITC (HS) Import Policy, Chapter 87, Policy Conditions 1, 2, 3, 4, 5, 6, 7, 9 and 11
2
Ensure vehicles imported by manufacturers, their authorised representatives, or by organisations or citizens for personal use, demonstration, testing, research, or scientific use comply with the Central Motor Vehicles (Eleventh Amendment) Rules, 2018 for registration purposes. Compliance must be documented before out-of-charge.
GSR 870(E) dated 13-09-2018, Ministry of Road Transport and Highways · DGFT Notification 14/2015-20 dated 28-08-2019 · ITC (HS) Policy Condition 12 of Chapter 87

A word of counsel

The most common error on this tariff line is applying the new-vehicle policy conditions to a second-hand consignment — or vice versa — without first establishing the vehicle's age and condition status at the time of shipment. Policy Condition 1 for used vehicles carries materially different eligibility requirements and port-of-entry constraints from Conditions 2, 7 and 9 for new vehicles; misclassification of condition results in consignment detention and potential confiscation under the Customs Act, 1962, irrespective of whether the declared CIF value is otherwise accurate.

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Frequently asked

Does HSN 8704 21 00 require BIS certification?

No, motor vehicles for the transport of goods under this tariff line are not covered by any BIS Quality Control Order. 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 required under the Central Motor Vehicles (Eleventh Amendment) Rules, 2018.

Which policy conditions apply to the import of second-hand goods vehicles under this HSN?

Second-hand or used vehicles are subject exclusively to Policy Condition 1 of Chapter 87, while Policy Conditions 3, 4, 5, 6 and 11 set out applicable exemptions that must be reviewed before the bill of entry is filed.

Does the registration requirement under GSR 870(E) apply only to commercial importers or also to individuals importing for personal use?

The Central Motor Vehicles (Eleventh Amendment) Rules, 2018 apply to all importers — manufacturers, authorised representatives, organisations, and individual citizens importing for personal use, demonstration, testing, research, or scientific purposes — per Policy Condition 12 of Chapter 87 and DGFT Notification 14/2015-20 dated 28-08-2019.

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