the government of India may block the import of used vehicles by invoking environmental and safety rules. According to senior government officials, there is a "strong case against the import of used vehicles." They said that blocking the import of second-hand goods on environmental grounds is compatible with the commitments made to the World Trade Organization (wto).
The officials assert that India has a genuine case as old vehicles are suspect with regard to meeting emission standards and safety norms. Moreover, according to a section in the government, the issue cannot be resolved by leaving it to market trends since consumers are tempted by the price effectiveness of used foreign vehicles.
Recently, the Society of Indian Automobile Manufacturers (siam) had urged the Indian government to allow import of used cars only with a duty rate of 100 per cent. siam has also suggested that an independent agency check the used vehicles for compliance with emission and safety standards.
Significantly, a majority of second-hand car imports are from Japan where their prices vary immensely due to strict government regulations on pollution.
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