A new imported vehicle with F.O.B (freight-on-board) value of $40,000 or more with over 3,000 cc for petrol-run engine and over 2,500cc for diesel engine would be eligible for the easier norms, the directorate general of foreign trade said in a notification.
Under the relaxed rules, imported vehicles which need homologation to make it suitable for Indian conditions, need not have a certification from an authorised body in the country of origin, as was required earlier.
But they need to comply with the European Union standards.
Industry experts say the move will help companies like Toyota, which can now import its Lexus brand, and Mercedes Benz to bring its S-Class in India, directly from the US.
The US does not have a nationalised certification authority and makes import of vehicles from the country to India cumbersome.
However, at the time of customs clearance, a Type Approval Certificate of an international accredited agency from the country of origin or any similar document would be required.
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