EU to allow 2.5 lakh Indian passenger vehicles at concessional duty of 8 per cent under FTA

The European Union will allow 25 lakh Indianmade passenger vehicles to enter its market annually at a concessional duty of 8 per cent under a bilateral free trade agreement with the quota rising to 4 lakh vehicles according to the draft text released by the EUThese import duty concessions cover Indianorigin internal combustion engine ICE passenger cars and hybrid electric vehicles HEVs priced up to Euro 50000 on a CIF cost insurance freight basisThe quotabased concessional duty or tariff rate quota TRQ will be gradually reduced to 6 per cent in the second year of implementation of the IndiaEU free trade agreement the conclusion of which was announced on January 27 this yearAfter that the duty will come down to 4 per cent in the third year 2 per cent in the Year 4 and then zero in the Year 5As per the text the annual quota will increase gradually from 25 lakh vehicles in the first year to 4 lakh from the 10th year Beyond this quota MFN most favoured nation duty will come into forceThere is no quotabased concessions for cars priced above Euro 50000 The duty on these vehicles will come down to zero per cent in the Year 10 from 8 per cent in the first year of the pact which is expected to be signed later this year and may come into force from next yearFor BEV battery electric vehicles PHEV plugin hybrid electric vehicles and passenger vehicles of any other technology except ICE and HEV the pact provides a separate TRQIn this category of vehicles priced up to Euro 40000 CIF the TRQ will start from Year 5 The EU will allow 27500 vehicles at 8 per cent import duty The quota size will gradually increase to 60500 in Year 9 and then to 125000 from Year 14 onwards The duty will be removed from the ninth year of the implementation of the dealThe CIF includes the actual purchase price of the vehicle shippingfreight cost and insurance to the EU port of entryFor vehicles priced above Euro 40000 CIF and up to Euro 60000 CIF the tariff rate quota will start from Year 5 with 16250 vehicles annually at 8 per cent The annual quota size will be increased to 75000 in Year 14 and onwards and the duty will come down to nilFurther for these cars priced above Euro 60000 CIF the tariff rate quota too will start from Year 5 The EU will allow 6250 vehicles at 8 per cent import duty The quota size will gradually increase to 13250 in Year 9 and then to 25000 from Year 14 onwards The duty will be removed from the ninth year of the implementation of the dealAs per the text the EU would provide quotabased duty concession on certain Indian origin agricultural and processed food itemsThese products include table grapes dried onions cucumbers and gherkins molassesbased rum and gheeOn ghee the text said that inquota tariff rate equal to 50 per cent of the base rate of the customs duty in the aggregate annual quantity of 1000 metric tons from the date of EIF effective into forceThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever