Government puts curbs on import of power tillers and its components

The government has imposed curbs on import of power tillers and its components, a move that could discourage inbound shipments of these products.

"Import policy of power tillers and its components is amended from free to restricted," the Directorate General of Foreign Trade (DGFT) has said in a notification.

Putting a product under a "restricted" category means the importer would have to seek a license from the DGFT for the imports.

The tiller is an agri-machinery used for soil preparation. The components of power tillers include engine, transmission, chassis and rotavator.

In a public notice, the directorate has laid out a procedure for giving import licenses.

It said that the cumulative value of authorisation issued to any firm/all firms in a year would not be exceeding 10 percent of the value of power tillers imported during the past year (2019-20) by that company.

The cap of 10 percent would also be applicable for components of power tillers.

The applicant should have been in the business for at least three years and should have sold a minimum of 100 power tillers in the past 3 years, it said.

"Only manufacturers are eligible for applying for an import authorisation for import of power tillers or its components. The applicant should have satisfactory and proven infrastructure for training, post-sales service and spare parts," it added.