Will the Minister of FINANCE be pleased to state:-

(a) whether it is a fact that a number of foreign flagged motor yachts and sailing boats are being owned and/or operated in Indian seas including ~n the Andaman and Nicobar islands which do not need to pay import/customs duty whilst Indian flagged vessels pay customs duty of 30 plus percent; and

(b) if so, whether this constitute a loophole that is being exploited to avoid customs duty?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI S.S.PALANIMANICKAM)

(a) & (b): A foreign flagged vessel whether or not owned and/or operated by an Indian, when calling on any Indian port is treated as conveyance and is not liable for payment of import duty: A motor yacht or sailing boat arriving into India for the first time, for registration as Indian flagged vessel, is considered as imported goods and is charged to applicable customs duty. On subsequent calls at any Indian Port, the Indian flagged vessel is treated at par with the foreign flagged vessel and is not charged to customs duty.