EU to allow 2.5 lakh Indian cars at concessional duty under FTA; quota to reach 4 lakh in 10 years

NEW DELHI: (Sep 14) The European Union will allow 2.5 lakh Indian-made passenger vehicles to enter its market annually at a concessional duty of 8 per cent under a bilateral free trade agreement, with the quota rising to 4 lakh vehicles, according to the draft text released by the EU.

These import duty concessions cover Indian-origin internal combustion engine (ICE) passenger cars and hybrid electric vehicles (HEVs) priced up to Euro 50,000 on a CIF (cost, insurance, freight) basis.

The quota-based concessional duty (or tariff rate quota – TRQ) will be gradually reduced to 6 per cent in the second year of implementation of the India-EU free trade agreement, the conclusion of which was announced on January 27 this year.