paul
12-24-2008, 08:52 AM
FOR YEARS WE'VE BEEN deprived of powerful multi cylinder bikes in a bid to save the domestic two-wheeler industry. While Indian manufactures may have thrived in this scenario, unfortunately even with gigantic turnovers and humongous profits, they have never emphasised on investing in R&D for bigger bikes, for they don't see a market. As a result, we are sold age-old technology and enthusiasts are forced to ride single cylinder, air-cooled, two-valve engined bikes which hardly qualify as learner motorcycles in developed countries. A 2S0CC single (220CC, to be more precise) with more than 20 year old technology is still the best we have on offer here. Yet, the local two-wheeler industry wants the government to protect their interests by imposing high duties on bike imports.
Curbs include restrictions on bringing in motorcycles upto 800cc and levying exorbitant import duties (amounting to as much as ISO percent) on bigger capacity bikes. Performance bikes, according to the government, are luxury items. Surprisingly, yachts and airplanes (which ACTUALLY are luxury items) attract duties less than 40 percent. Doesn't the nascent shipping and aviation industry of our country deserve a fighting chance against the foreign onslaught? Why the discrimination? Even so, after decades of protectionism, what has our two-wheeler industry really achieved in the field of technology and engineering? Shouldn't they be made answerable for bereaving the Indian two-wheeler customer of the latest technology?
Nonetheless, if you are willing to import a performance bike legally, our government won't let you. For instance, procuring some of the documents required is virtually impossible. So in essence, our motorcycle import policy encourages illegal trade and makes the performance enthusiast an easy target for corrupt custom officials who want to get their palms greased. The honest man can go cry in his mommy's lap. Let's have a look at some of the preposterous requirements of India's bike import policy and why they need to be altered.
* Type Approval Certificate - A Procedural Flaw
The Problelm
One of the biggest hassles in imporling.a bike legally into India is the pre-condition to have a certified true copy of the actual Type Approval Certificate at the time the vehicle has to clear customs. This Type Approval should Qe far tn~ entire vehicle and should" conform to the EU standard 2002/24iEC.
The Analysis
A Type Approval or COP (Certificate of Production) is INITIAllY issued to a manufacturer to certify that the original sample vehicle has been approved by a testing agency, thus allowing a manufacturer to start selling that particular model in the EU. A subsequent motorcycle of that model sQid.does not come with the Type Approval Certificate or even a 'photocopy' but with a standard EU COC (European Union Certificate of Conformity / Compliance). We have spoken to a variety of international motorcycle dealers in the past few months and none could provide this certificate. Yet, importing a bike without this non-standard document results in a huge fine and penalties imposed by the Indian custom officials. Our DGFT has stipulated that not only does one have to get a copy of the ORIGINAL Type Approval Certificate but it has to be an ATTESTED, TRANSLATED (where required) TRUE COPY from a listed agency approved by the Indian government. The list, however, happens to have been compiled in the 1990S and several of the agencies listed do not exist anymore or do not conduct Type Approval testing as we discovered to our utter surprise.
150
The Solution
The government should amend the policy to state that an official EU COC from a reputed manufacturer is sufficient evidence of conformity to the EU Directive 2002/24/EC for two-wheeler imports.
* Country of Origin - A Conceptual Flaw
The Problem
One of the key stipulations of the current import policy and under DGFT notifications, a motorcycle may only be imported from its original country of manufacture and not from any other nation.
The Analysis
EU specification Japanese motorcycles CANNOT be sourced by an individual for import to India as a consequence of this clause. However, the majorit)l of grey market imports are Japanese and are shipped to India from Hong Kong, Singapore, Dubai, Thailand or the UAE. Very few of them originate from Japan and the ones that do, obviously do not have i;U specifications. Though categorically forbidden by the rules (that apply only to the honest guys it seems), various crooks manage via backdoor arrangements.
The Solution
A buyer should be permitted to import from any country where he can negotiate a good deal as well as save on freight. Being able to communicate with the dealer in English is a bonus. The key criteria are pollution control and valid paperwork.
* False protectionism of the Indian two-wheeler companies - A Fundamental Flaw
The Problem
The 800cc issue, high import duties, pressure from Indian motorcycle manufacturers and false protectionism from the government.
The Analysis
After 60 years of independence and even with all these prohibitions, Indian motorcycle manufacturers have not been able to build.
Curbs include restrictions on bringing in motorcycles upto 800cc and levying exorbitant import duties (amounting to as much as ISO percent) on bigger capacity bikes. Performance bikes, according to the government, are luxury items. Surprisingly, yachts and airplanes (which ACTUALLY are luxury items) attract duties less than 40 percent. Doesn't the nascent shipping and aviation industry of our country deserve a fighting chance against the foreign onslaught? Why the discrimination? Even so, after decades of protectionism, what has our two-wheeler industry really achieved in the field of technology and engineering? Shouldn't they be made answerable for bereaving the Indian two-wheeler customer of the latest technology?
Nonetheless, if you are willing to import a performance bike legally, our government won't let you. For instance, procuring some of the documents required is virtually impossible. So in essence, our motorcycle import policy encourages illegal trade and makes the performance enthusiast an easy target for corrupt custom officials who want to get their palms greased. The honest man can go cry in his mommy's lap. Let's have a look at some of the preposterous requirements of India's bike import policy and why they need to be altered.
* Type Approval Certificate - A Procedural Flaw
The Problelm
One of the biggest hassles in imporling.a bike legally into India is the pre-condition to have a certified true copy of the actual Type Approval Certificate at the time the vehicle has to clear customs. This Type Approval should Qe far tn~ entire vehicle and should" conform to the EU standard 2002/24iEC.
The Analysis
A Type Approval or COP (Certificate of Production) is INITIAllY issued to a manufacturer to certify that the original sample vehicle has been approved by a testing agency, thus allowing a manufacturer to start selling that particular model in the EU. A subsequent motorcycle of that model sQid.does not come with the Type Approval Certificate or even a 'photocopy' but with a standard EU COC (European Union Certificate of Conformity / Compliance). We have spoken to a variety of international motorcycle dealers in the past few months and none could provide this certificate. Yet, importing a bike without this non-standard document results in a huge fine and penalties imposed by the Indian custom officials. Our DGFT has stipulated that not only does one have to get a copy of the ORIGINAL Type Approval Certificate but it has to be an ATTESTED, TRANSLATED (where required) TRUE COPY from a listed agency approved by the Indian government. The list, however, happens to have been compiled in the 1990S and several of the agencies listed do not exist anymore or do not conduct Type Approval testing as we discovered to our utter surprise.
150
The Solution
The government should amend the policy to state that an official EU COC from a reputed manufacturer is sufficient evidence of conformity to the EU Directive 2002/24/EC for two-wheeler imports.
* Country of Origin - A Conceptual Flaw
The Problem
One of the key stipulations of the current import policy and under DGFT notifications, a motorcycle may only be imported from its original country of manufacture and not from any other nation.
The Analysis
EU specification Japanese motorcycles CANNOT be sourced by an individual for import to India as a consequence of this clause. However, the majorit)l of grey market imports are Japanese and are shipped to India from Hong Kong, Singapore, Dubai, Thailand or the UAE. Very few of them originate from Japan and the ones that do, obviously do not have i;U specifications. Though categorically forbidden by the rules (that apply only to the honest guys it seems), various crooks manage via backdoor arrangements.
The Solution
A buyer should be permitted to import from any country where he can negotiate a good deal as well as save on freight. Being able to communicate with the dealer in English is a bonus. The key criteria are pollution control and valid paperwork.
* False protectionism of the Indian two-wheeler companies - A Fundamental Flaw
The Problem
The 800cc issue, high import duties, pressure from Indian motorcycle manufacturers and false protectionism from the government.
The Analysis
After 60 years of independence and even with all these prohibitions, Indian motorcycle manufacturers have not been able to build.