F1 teams still wary of Indian customs

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The turbulent run-up to the inaugural Indian Grand Prix last year created such a scare that Formula One teams are still wary of the country's bureaucratic hurdles.

The 2012 F1 season has reached a crucial stage and both drivers' and constructors' titles are still up for grabs, but top teams are worried that new equipment, flown in at the last minute to boost performance at this weekend's Indian GP, may get stuck at Customs.

Vicky Chandhok, president of the Federation of Motorsport Clubs in India, says the government is doing little to facilitate the smooth conduct of the event, despite the organisers -Jaypee Group -“donating `10 crore every year towards the national sports development fund as a condition for getting sports ministry's clearance“.

“We were asked to get permission again this year, though we have clearance for seven years in principle. Unlike other F1 venues (such as Abu Dhabi, Bahrain, Malaysia and Singapore), the Indian GP is a 100 percent private project and there is no financial support from the government. We are not using any government property either. We are aware that the process of getting Customs clearance is tedious.

Organisers are ready to pay temporary import duty; all they want is smooth clearance,” said Chandhok.
When equipment is imported for sporting events, the sports min istry issues a certificate on the basis of which the Customs department releases exemption notification. provided there is a guarantee that the equipment would be sent back.

For the Commonwealth Games and the cricket World Cup, these certificates were issued.
But, the ministry refused to give duty exemption to Formula 1 terming it “of no national importance“ and Jaypee Group took the responsibility of paying it on behalf of the teams. Once the F1 consignments landed in New Delhi, they paid temporary import duty, and it was reclaimed on payment of 2 to 5 per cent as administration fee — estimated to be around `8 crore last year.

According to McLaren technical director Paddy Lowe, “Indian GP is the most awkward race of the year in terms of Customs issues.”

Ferrari’s sporting director Massimo Rivola said the Customs rule in India is a bit of a problem “That is a fact. We try to maximise what we can do at the factory in order not to go to India with an extra shipment because the risk is that we won’t get the extra shipment on the track. And also, even if you get it there, you won’t know if you can bring it to the following race. So it is a bit of a gamble,” Rivola was quoted as saying.