Importing electrical 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:
- 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, which reduces the freight charges.
- 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 the competitiveness of the vehicles.
- 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 creates jobs and can help to develop the local manufacturing sector.
- 4) 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).
- 5) Obtain a Bill of Entry: The Bill of Entry is a document that is filed with the Customs department and contains details about the goods being imported, including the value, quantity, and description of the goods. It is required for customs clearance.
- 6) Obtain a Customs Declaration Form (CDF): The Customs Declaration Form (CDF) is a declaration form filled by the importer or his representative and submitted to the customs department. It contains information about the importer, the goods being imported, and the value of the goods.
- 7) Obtain a Packing List: A packing list is a document that details the contents of each package and the number of items in each package. It is used for customs clearance and for ensuring that the correct items have been received.
- 8) 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.
- 9) 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 is of the standard quality.
- 10) Obtain Customs Clearance: After all the required documents have been submitted, the importer or his representative will have to clear the goods through customs. The customs department will verify the documents and the goods will be cleared for release upon payment of applicable duties and taxes.
- 11) Obtain a Delivery Order: Once the customs clearance has been obtained, the importer or his representative will be issued a delivery order, which serves as a release order for the goods.
It is important to note that the Indian government has been taking various steps to promote the use of electric vehicles in India and has also been providing incentives for importers and manufacturers of electric vehicles. Therefore, importers should also keep themselves updated on the current regulations and policies related to the import of electric vehicles in India.
In conclusion, importing EVs in CKD and SKD conditions in India can provide several benefits, including cost savings, customization and localization, investment and employment. The process of importing EVs in CKD and SKD conditions requires obtaining various documents and clearances, including GST registration, a Bill of Entry, a Customs Declaration Form, a Packing List, and a Phytosanitary certificate. It also requires compliance with the regulations set by the Customs department and other relevant authorities. Importers should also keep themselves updated on the current regulations and policies related to the import of electric vehicles in India.