For the printing industry the much debated issue of ban on import of used machinery was put to rest, with Para 2.31 on Page 42-43 of the new import policy announcing no restriction on import of secondhand capital goods.
On 1 April, 2015, PrintWeek India had reported the Government’s intention to ban import of machinery that is more than five years old, aimed to help boost domestic manufacturers, as well as increase competitiveness.
After this announcement, it was widely felt that the ban would be reflected in the much delayed Foreign Trade Policy 2015-20 (the FTP is announced every five years, with the previous one, FTP 2009-14 announced on 27 August, 2009), unless a different maximum age is specified by the Department of Commerce in consultation with concerned ministry/department and National Manufacturing Competitive Council (NMCC).
The new import policy under the heading: Import Policy for Secondhand Goods – Para 2.31 however, frees (without restriction) import of all secondhand capital goods except personal computers / laptops including their refurbished / reconditioned spares, photocopier machines/ digital multifunction print and copying machines, air conditioners and diesel generating sets (considered secondhand capital goods). It also mentions that all secondhand goods except capital goods will fall under import restrictions.
While the new policy on import of secondhand goods has allowed free import of refurbished / reconditioned spares of capital goods, it is subject to production of chartered engineer certificate to the effect that such spares have at least 80% residual life of original spare.
To download the FTP 2015-20 click here: http://dgft.gov.in/exim/2000/ftp2015-20E.pdf