Trade Policy
Automobiles and automobile parts are classified under HS code beginning with 87 excluding 8712, 8713, 871491 to 871494 which are bicycles and parts. Imports of all the items under these codes are allowed freely except items falling under the code 8710.

Industry Policy
Industrial undertakings manufacturing automobiles and parts are exempt from obtaining an industrial licence to manufacture. However, they are required to file an Industrial Entrepreneur Memoranda (IEM) in Part 'A' Secretariat of Industrial Assistance (SIA) and obtain an acknowledgement. No further approval is required. Immediately after commencement of commercial production, Part B of the IEM has to be filled in. There are also no restrictions as far as the location of the project is concerned.

Specific items under automobiles and parts are reserved for production by the small scale industry. A small scale unit is not permitted more than 24 per cent equity in its paid up capital from any industrial undertaking either foreign or domestic.

Tariff-non-tariff Policy
Imports of all items under the product group automobiles and automobile parts attract custom duties in the range of 56.832 to 147.312 per cent.

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