In a move which comes a bit late, the government of India has modified the trade policy to ease the import of cars and motorcycles for racing events being held in India.The struggles faced by the Formula 1 organizers during the Indian Grand Prix, especially the inaugural edition were well known.
In a notification issued on Wednesday, the Directorate General of Foreign Trade (DGFT) said that instead of treating race equipment as any other cargo being imported into the country, the importer will instead be required to execute a bond with Customs with adequate security/surety to re-export the vehicle(s) within 30 days of the completion of the event.
Earlier, event organizers, Jaypee Sports, would have to pay close to Rs 8 crore to import cars and equipment into the country for the Grand Prix to hold the event, as the Sports Ministry refused to grant any exception since it did not consider the GP as an event of ‘national importance’ or even a sport.
Whereas, for motorsport events worldwide, the normal practice is to have a custom bonded area at the airport which would enable the F1 cargo to land and immediately be taken to the track where everything is assembled and dis-assembled, and then flown out of the country after the event. This is done on the grounds that nothing is being imported into or exported out of the country and hence, the custom duty isn’t involved.
The notification also mentions that vehicles imported under this route shall not be allowed to be taken on public roads and can only be used within the enclosed premises with requisite safety precautions.
via : ACI