CAR SERIES `F' PART XXI
                                 ISSUE II, DATED 7.11.1997
FILE NO. 11-690/92-AI(2)         EFFECTIVE : FORTHWITH

Subject:  Import/Export  of Aircraft, Spares, Items of  Equipment 
          etc. for use on aircraft.


Aircraft Act 1934 Para 5, interalia, empowers the Central Govern-
ment  to make rules regulating the export/import of  an  aircraft 
for  securing  the  safety of operation.   The  requirements  for 
import  of aircraft are laid down by Director General of  Foreign 
Trade,  Ministry of Commerce (DGFT), vide Public Notice  No.  274 
(PN)/92-97 dated 23.2.95.  

     This part of the CAR specifies the manner in which aircraft, 
     aircraft spares, items of equipment may be imported and also 
     exported   and  re-imported  into  India  in  the  case   of 
     spares/items     of     equipment    which     cannot     be 
     repaired/overhauled within the country.


2.1  Component means one of the parts of a sub-assembly or assem-
     bly  of  which a manufactured product is made  up  and  into 
     which it may be resolved.   Component includes an  accessory 
     or attachment.

2.2  Consumables  means any item which participates in or is  re-
     quired for a manufacturing/maintenance process, but does not 
     form   a   part  of  the  end-product.   Items   which   are 
     substantially     or    totally    consumed     during     a 
     manufacturing/maintenance  process  will  be  deemed  to  be 

2.3  Importer means a person who imports or intends to import and 
     holds an Importer-Exporter code number.

2.4   Policy  means the Export and Import Policy as amended  from 
     time to time.

2.5  Public Notice means a notice published under the policy  for 
     the information of the public.

2.6  Spares  means a part or a sub-assembly or assembly for  sub-
     stitution, that is, ready to replace an identical or similar 
     part   or  sub-assembly  or  assembly.   Spares  include   a 
     component or an accessory.


3.1  Import of Aircraft for Scheduled/Non-Scheduled Air Services: 

(a)  Aircraft may be imported by the following organisation with-
     out the need to obtain an import licence from the DGFT.

     a) Air India
     b) Indian Airlines
     c) Pawan Hans Limited
     d) Airports Authority of India
     e)  Indira  Gandhi Rashtriya Uran  Academy(IGRUA)  and  such 
     other  Flying Clubs/academies recognized by the Ministry  of 
     Civil Aviation. 
     f)  Any  person  who  has been  granted  permission  by  the 
     Ministry  of  Civil Aviation, Govt. of India  for  operating        
     Scheduled   or   non  Scheduled   Air   Transport   Services         
     (including  Air  Taxi  Services)  for  import  of   aircraft         
     subject  to  the condition that the import of  the  aircraft          
     and their use is in accordance with such permission.

(b)    Public   Sector  Enterprises  and   their   wholly   owned 
     subsidiaries  under  the  Ministry  of  Civil  Aviation  are 
     exempted   from  the  procedure  of   aircraft   acquisition 
     committee for the purpose of import of aircraft. However, an 
     NOC may be issued by DGCA, if required, after  certification 
     by  the  Ministry of Civil Aviation that the import  of  the 
     aircraft has been approved by the competent authority. 

(c)  Applications  for import of aircraft for private  Scheduled/ 
     Non  Scheduled services including Air Taxi and  aerial  work 
     may be forwarded to Ministry of Civil Aviation, Rajiv Gandhi 
     Bhavan,  New  Delhi.The  form for application  is  given  in 
     Appendix  I. After such scrutiny of the application  by  the 
     aircraft  acquisition  committee as may  be  necessary,  the 
     Ministry  may grant permission for import of  the  aircraft.  
     The procedure is described in CAR Section 3, Series `C'.

3.2 For  import  of aircraft which are to be used  for  specific 
     national  projects  approved  by Government  of  India,  the 
     permission  for  import may be granted by  the  Ministry  of 
     Civil  Aviation on the recommendation of the  Administrative 
     Ministry regulating such projects.  

3.3  Import of Aircraft by Companies and individuals :

(a)  The  import  of aircraft by any category of  importer  other 
     than  given  in  para 3.1 and 3.2 shall  require  an  import 
     licence  to be granted by the DGFT. Such aircraft  shall  be 
     imported  for personal use by companies and individuals  and 
     shall not be utilised for hire and reward unless specifical-
     ly permitted by the Ministry of Civil Aviation.

(b)  For import of such aircraft by companies and individuals the 

     application (ten copies) may be forwarded to the DGFT.   Two 
     copies  of this application with enclosures should  also  be 
     forwarded  to  the  DGCA.  The  application  should  include 
     detailed justification for import of aircraft, type and make 
     of aircraft, number of aircraft to be imported, availability 
     of  foreign  exchange resources and status  of  aircraft  in 
     terms  of age, accident/incident history and hours/cycle  of 
     operation.   The  application  shall be  made  in  the  form 
     prescribed in Appendix -II.

(c)  The  age of the aircraft to be imported shall be in  accord-
     ance with CAR Section 2 Series F Part XX.

(d)  After  ascertaining the suitability of the aircraft for  its 
     intended operation, suitable recommendation may be forwarded 
     to  the DGFT. After such scrutiny by the  Special  Licensing 
     Committee  as  may  be  required,  DGFT  may  issue   import 
     licence/CCP for import of the said aircraft.


4.1The  policy for import of spares is laid down in the  Export 
     and Import Policy and the Hand Book of Procedures issued  by 
     DGFT,  Ministry of Commerce.  Relevant extracts  are  repro-
     duced below :

       Para 76 of Hand Book of Procedures :

          Air  India,  Indian Airlines, Pawan  Hans  Limited  and 
          scheduled    domestic   private    airlines,    private 
          sector/public  sector  companies and  State  Government 
          operating executive /training aircraft or those engaged 
          in aerial spraying of crops and non scheduled  airlines 
          and  charter  service  operators will  be  eligible  to 
          import  without a licence,  re-conditioned/second  hand 
          aircraft spares on the recommendation of DGCA.

       Chapter 88 Para 88.O3 regarding import of spares :

          a)  Import of reconditioned or second hand spare  parts 
          including propellers, rotors, under carriages,  engines 
          and  other  parts  of aeroplanes  and  helicopters  are 
          permitted   without  licence  to  the   categories   of 
          operators   as   specified   in   Para   3.1   on   the 
          recommendation of DGCA.  

          b)  Import  of all new spare parts for  aeroplanes  and 
          helicopters are permitted to be imported freely without 
          the recommendation of DGCA.

Note  :1.  Regional  and  Sub Regional Airworthiness  Offices  are 

          authorised to recommend import of spares and issue duty 
          concession certificates on behalf of DGCA.

       2. Only  such  organisations  specified in  para  3.1  can 
          import  repaired/overhauled/re-conditioned second  hand 
          components. All organisations other than those  covered 
          in para 3.1, including stockist firms approved by  DGCA 
          in  cat.  'F' of CAR Series 'E', can  import  only  new 
          components accompanied by valid documents.

4.2It   shall   be  ensured  that  all  aircraft   spares   are 
     manufactured/overhauled   by   organisations   approved   by 
     regulatory     authorities     of     the     country     of 
     manufacture/overhaul.  The  spares  so  imported  shall   be 
     accompanied by authentic Documents/ Release Note giving  the 
     status  of  the airworthiness of the  component,  issued  by 
     authorised persons. 

4.3  Reconditioned/overhauled  spares  and  items  of   equipment 
     should be accompanied by history cards/data giving upto-date 
     status  of compliance with components service bulletins  and 
     airworthiness directives.

5.    Export  of spares or the  item/equipment  for  maintenance/
     repair/overhaul an re-import thereafter.

     In  certain  exigencies  an  operator may  not  be  able  to 
     service/maintain/overhaul an item of equipment removed  from 
     the aircraft within the country due to various reasons.   In 
     such cases the aircraft operator may approach the DGCA for a 
     No  Objection  Certificate to export the spares or  item  of 
     equipment  for  carrying out necessary  repairs/overhaul  at 
     approved  Firm/Agency  abroad and re-import the  same  after 
     carrying  out the necessary work. The operator must  furnish 
     all details of the spares, items of equipment including  the 
     name  of  the approved firm/agency when the  same  is  being 
     despatched  for  overhaul/repair/investigation. In  case  of 
     premature   failure,  the  aircraft  operator   shall   make 
     necessary  arrangements  with  the  overhaul  agencies   and 
     arrange copy of the investigation report to be sent to DGCA.  
     Some  of  the manufacturers abroad have a  procedure  called 
     Standard  Exchange  Programme  wherein  a  failed  part   is 
     replaced by a serviceable part of another serial number.  In 
     such cases also DGCA will permit the operator to export  the 
     failed  part/life  expired part and replacement  thereof  by 
     serviceable part of different serial number.  In such  cases 
     also  the aircraft operator shall ensure that  investigation 
     report of the prematurely removed components are sent to the 
     DGCA  on completion of the investigation.  The above  export 
     and  re-import  of spares etc. is subject to  compliance  of 
     Reserve  Bank of India regulation, if any, on  the  subject.  
     In all such cases no import licence will be required and  in 

     lieu thereof the NOC issued by the DGCA will suffice.


     For   the   import  of  tools/equipment  required   as   per 
     maintenance  manual/manufacturer of  the  aircraft/accessory 
     for  maintenance/testing etc., the importer shall obtain  No 
     Objection Certificate from DGCA.

                                       ( N.Ramesh )
                          Dy. Director General of Civil Aviation

                                                  APPENDIX 'I'

1. Applicant's details

   A. In case of an individual

      a) Name

      b) Nationality

      c) Address in India with Telephone, Telex, Fax numbers

   B. In case of a company or a corporate body

     a) Name of the company/corporate body
        with details of registration

     b) Address with telephone, telex,Fax numbers
        of the registered office

     c) Address of principal office of business, including
        operations and maintenance bases

     d) Full details of any other business the company are 
        engaged in.

     e) Names and nationality of the Board of Directors.

     f) Details of the share holding of the company

     g) Percentage share of foreign nationals
        or company, if any, in the capital of the company

     h) A copy each of the certificate of incorporation 
        and Memorandum and Articles of Association

     i) Objects of the organisation particularly 
        with regard to proposed air transport operations.

     j) Details of experience in civil aviation field/activities

2. Financial resources

     a) Authorised equity capital

     b) Subscribed equity capital

     c) Other resources
        (attach supporting documents such as
        balance sheet, bank certificates etc.)

3. Details of Organisation

     a) Overall set up including details of
        operational, management, engineering 
        quality control set up, flight safety cell etc.

     b) Proposed maintenance facility with details of 
        organisation, equipment and approved program.

     c) Staff strength of the proposed maintenance
        personnel and plans of their training

     d) Number of flight crew with details of their 
        licences and training for each type 
        of aircraft in the fleet
     e) Sources of pilots and engineers

     f) Main maintenance base and operational bases

     g) Details of the organization where the aircraft will night 
        stop with number of aircraft at each place. 

4. Details of aircraft proposed to be operated

     a) Whether the aircraft is acquired on outright purchase
        or lease finance (indicate wet lease or dry lease).

     b) Name and address of Owner /Lessor 
        for the purpose of registration of aircraft.
     c) Number and type of aircraft. 
     d) Passenger capacity of each type of aircraft.

     e) Maximum take off weight.

     f) Name of the authority who issued type certioficate to the 

     g) Arrangements for ground handling equipment
        at each airport of proposed operations.

     h) Details of personnel to handle dangerous goods

5. Type of Air Transport Services proposed

     a) Scheduled Air Transport Services

     b) Non-Scheduled Air Transport Services 

6. Details of routes proposed to be operated with
   the type of aircraft, proposed flight schedules and frequency.

7. Potential need for the proposed services

8. Projected profitability
   (a copy of feasibility study may be enclosed)

9.  Available  seat  kilometer proposed to be  deployed  in  each 
     category of routes/region.

10. State if the applicant has at any time contravened
   any provision of the aircraft act 1934 and/or the
   rules made thereunder. If so, give details.

11. Particulars of fees, the name of the Bank
    (to be drawn on any scheduled bank in Delhi,
    payable to Central pay & Accounts office, CAD, New Delhi).

12. Statement showing compliance with the Civil Aviation
    Requirements(CAR Section 3 Series 'C' Part I if the  aircraft 
     are leased by the operator.

13. Statement showing compliance with the requirements 
    of CAR Section 3 Series 'E' Part I for operations 
    to new stations, if proposed.

14. By what time the operations are proposed to be started

15. Other information to meet the provisions of
    the Aircraft Rules 1937.

16. Details of the Security Program approved by BCAS.

Certified  that  the statements made/information  given  in  this 
application are true.

              (Signature of the applicant/authorised signatory.)

 Note  :  Eight  copies of the application  are  required  to  be 
submitted to the Ministry of Civil Aviation (Department of  Civil 
Aviation).  All copies of the application should be supported  by 
documents wherever necessary. 

                                             APPENDIX -II

       (Reference Handbook of Procedures, Appendix VII Annex. IV), published by DGFT, Ministry of Commerce)

                   (10 copies to be enclosed)
1.    Name and address of the applicant

2.    Details of items applied for import

  |S.No.|  Description of items |  Quantity   |    CIF value |
  |     |                       |             |              |
  |     |                       |             |              |
  |     |                       |             |              |         
  |     |                       |             |              |
  |     |                       |             |              |

                                Total CIF value:
                                In Rs.______________________
                                In foreign currency_________

3.    Year of manufacture
4.    Whether new/second hand
5.    Seating capacity
6.    Country of Origin
7.    Residual life
8.    No. of flying hours already
9.    No. of Aircraft(s) already imported/
      in possession with the applicant
10    Whether the applicant falls in the 
       category of 'private category' or 'passenger category'.
11.   Whether requires CCP or Licence.
12.   No. and date of recommendation letter of DGCA
      (enclose a copy thereof)
13.   Justification of import

                                 Signature of the applicant