Harley gains as India allows zero import duty

Metro India News | Hyderabad 

India’s decision to allow zero import duty on certain American motorcycles has created some confusion, but the move is limited and specific. Under the proposed interim trade agreement between India and the United States, motorcycles imported from the US with engine capacities ranging from 800 cc to 1,600 cc and above will attract no customs duty once the agreement is implemented.

Earlier, high-capacity motorcycles imported as completely built-up units were subject to steep import duties of 30 to 50 per cent, which significantly raised their prices in the Indian market. 

The term “zero import” refers only to the elimination of customs duty charged at the time of import. India is a relatively small market for premium superbikes, and the US currently holds a limited share in this segment.  The duty concession is viewed as a step to strengthen bilateral trade relations. In exchange, the United States has agreed to reduce or remove tariffs on certain auto components imported from India.