Hindustan Times ·
EU to allow 2.5 lakh Indian cars annually at 8% duty under FTA
Quota-based concessional duty for India-made cars being imported to EU will be gradually reduced to 6% in the second year of implementation of the India-EU FTA.
European Union will allow 2.5 lakh Made-in-India cars to enter the continent annually at a concessional import duty of 8% under a bilateral free trade agreement (FTA), with the quota rising to 4 lakh vehicles. According to the draft text released by the EU, the reduced import duty will be applicable for the Made-in-India internal combustion engine (ICE) passenger vehicles and hybrid electric vehicles, which are priced up to Euro 50,000 on a CIF (cost, insurance, freight) basis.
The draft also reveals that the quota-based concessional duty will be gradually reduced to 6% in the second year of implementation of the India-EU FTA, which was announced on January 27 this year. After the second year of implementation, the import duty will come down to 4% in the third year, 2% in the fourth year and then to zero in the fifth year.