S J EXIM Services

Dated: 27.06.2019

Policy & Procedure to Import of Old & Used Tyres in India

The Import of Old & Used Tyres in India is a cumbersome process and mostly lands importers in trouble along with the overseas suppliers of these goods. There are multiple agencies involved in the process of import of such tyres in India. It is quite a daunting task for the overseas suppliers or the Indian Importer to keep a track on the changing policy landscape on this serious subject.

we are presenting a short & concise points to analyse & plan appropriately before even importing such tyres in India as listed below-

1. ITC (HS) Tariff Code 4012 2090 is free as per EXIM Policy of DGFT. subject to the Min CIF value of each Tyres should be USD 25/Piece
2. ITC (HS) Tariff Code 4012 2020 is Restricted as per EXIM Policy under Para 2.31 clause ( II ) of FTP 2015-20 (DGFT), which Reads as “Second Hand Goods other than capital goods”
3. Adherence to the MoEF guidelines as per B-3140 as per Schedule III Part B of under the amended HSMD Rules 2016. In the said HSMD Rule 2008 Old & Used Tyre was defined as a Hazardous Waste. Old & Used Tyre for Direct Reuse is not permissible as per MoEF Office Memorandum (OM) No. F. No.23-4/2009-HSMD dtd: 24/11/2014 of MoEF
4. Requirement of BIS standard IS 15709: 2018 for Automotive Vehicles- Retreaded Pneumatic Tyres for Passenger Cars- Specification

Key Operational Points to remember before Importing:

1. The Invoice Price should be USD 25/Unit CIF
2. The Imported tyres should confirms to IS 15709: 2018 for Automotive Vehicles- Retreaded Pneumatic Tyres for Passenger Cars- Specification (Buy the IS Standard below)
3. preventive or Limited use of biocides (such as fumigation of at-risk shipments)- Fumigating agency has to be informed to perform as per the HSMD Rules/BASEL Rules
4. The Tyres should be completely dry and no traces of water should be found before loading, during loading, during unloading & inspection – To ensure this Photography to be done at all the stated stages with min 6 to 8 photos at each stage
5. The test report of analysis of the waste, consignment, wherever applicable, from a laboratory accredited or recognised by the exporting country. In case of any doubt, the customs may verify the analysis/inspection report. Pls get the PSIC done, if possible, from international agencies like Bureau Veritas, SGS, TUV Rhineland etc.
6. A Declaration on the Exporters Letter Head stating that the export of Used & Old Tyres under HS Code 4012 2090 is only for Resale purpose and not for Recycling and does not violate any provisions of the HSMD Rule 2016 & that there shall be no waste disposal or waste generation in the entire process as per HSMD Rules 2008 & Amendment Rules 2016 as per the BASEL Convention
7. List of DGFT Recognised Agencies List for 3^rd Party PSIC issuance (Check below for the list & also refer to the DGFT website from time to time for the updated list)
8. Obtain a certificate from the Chartered Engieer at the Port of Import- The Min Residual life should not be less than 55% of the Old & Used Tyres and there should not be any visible cuts whatsoever other wise it shall fall in the category of Waste/Scrap Pneumatic Tyres under ITC (HS) tariff 4004
9. In case of import under ITC (HS) tariff 4012 2020 which is Restricted, Importers may refer to the ruling of Honorable Gujarat High Court in petition filed by M/s Kadri Enterprises Vs Union of India vide Special Civil Application No. 12236 to 12242 of 2016. The Honorable Gujarat High Court has clearly given its verdict stating that the Import of Old & Used Tyres for Reuse shall not require a prior consent from the MoEF or DGFT for that matter  (Copy of the High Court Order attached below)

List of Enclosures for Download/Purchase:

1. IS 15709: 2018 (Purchase Online Here below) – Standard IS 15709 for Old Tyres
2. HSMD Rules 2016 Ref Page 27 for Part B of Schedule III – HSMD Rules 2016
3. EXIM Policy of DGFT for Old & Used Goods – Chapter 2 FTP 2015-20
4. List of Inspection Agencies – DGFT Recognised Agencies
5. Hon. Gujarat High Court Ruling – High Court Ruling

Pay Here for BIS Standard IS 15709: 2018

Online Document Purchase

Charges for BIS Standard document no. IS 15709: 2018 and Consulting on Tyre Imports

$250.00

Source: DGFT, BIS, MoEF, Gujarat High Court

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services. We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!

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