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Jan

What are benefits and process to import Electrical vehicles in CKD and SKD conditions in India

Importing Electric Vehicles (EVs) in CKD and SKD Conditions in India

 

Importing electric vehicles (EVs) in India in Completely Knocked Down (CKD) or Semi-Knocked Down (SKD) conditions can provide several benefits to manufacturers, importers, and consumers. CKD and SKD vehicles are imported in a disassembled form and are assembled at the destination, which can provide cost savings and flexibility in terms of customization and localization. Here is a general overview of the benefits and process of importing EVs in CKD and SKD conditions in India:

Benefits

  • 1. Cost Savings: CKD and SKD vehicles are imported in a disassembled form, which can provide cost savings on import duties and taxes. Additionally, the cost of transportation is also reduced as the vehicles are shipped in a disassembled form, reducing freight charges.
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  • 2. Customization and Localization: CKD and SKD vehicles are assembled at the destination, which provides flexibility in terms of customization and localization. This enables manufacturers and importers to customize vehicles to meet the specific needs of the Indian market and to use locally sourced components, which can reduce costs and improve competitiveness.
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  • 3. Investment and Employment: Importing EVs in CKD and SKD conditions can promote investment and employment in the local assembly and manufacturing sector. The assembly and manufacturing of EVs create jobs and help develop the local manufacturing ecosystem.

Import Process and Documentation

  1. 1 .Obtain a GST Registration: Importers must have a GST registration and obtain an Import Export Code (IEC) to import vehicles in India. GST registration is mandatory for any business that intends to import goods into India, and the IEC is a mandatory 10-digit code issued by the Directorate General of Foreign Trade (DGFT).
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  3. 2. Obtain a Bill of Entry: The Bill of Entry is a document filed with the Customs department and contains details about the goods being imported, including their value, quantity, and description. It is required for customs clearance.
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  5. 3. Obtain a Customs Declaration Form (CDF): The Customs Declaration Form (CDF) is a declaration form filled by the importer or representative and submitted to the customs department. It contains information about the importer, goods, and value.
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  7. 4. Obtain a Packing List: A packing list details the contents of each package and the number of items in each. It is used for customs clearance and verification.
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  9. 5. Obtain a Phytosanitary Certificate: This certificate is issued by the Plant Protection Organization of the country of origin, certifying that the consignment of EVs is free from pests and diseases.
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  11. 6. Obtain an Inspection Certificate: This certificate is issued by the authorized inspection agency of the country of origin and confirms that the consignment of EVs meets standard quality requirements.
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  13. 7. Obtain Customs Clearance: After submitting all required documents, the importer or representative must clear the goods through customs. The customs department verifies the documents and releases the goods upon payment of applicable duties and taxes.
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  15. 8. Obtain a Delivery Order: Once customs clearance is obtained, the importer or representative receives a delivery order, which serves as the release order for the goods.

Government Support and Regulations

The Indian government has been taking various steps to promote the use of electric vehicles and has provided incentives for importers and manufacturers of EVs. Therefore, importers should keep themselves updated on current regulations and policies related to the import of electric vehicles in India.

Conclusion

Importing EVs in CKD and SKD conditions in India offers several benefits, including cost savings, customization, and employment generation. The process requires multiple documents and clearances such as GST registration, Bill of Entry, Customs Declaration Form, Packing List, and Phytosanitary certificate. Compliance with customs regulations and other relevant authorities is essential. Importers should stay updated on the latest government policies to maximize the benefits available under India’s EV promotion initiatives.

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