“As it is, they are entitled to get duty drawback up to 98 per cent on
the equipment imported. So effectively, they will have to pay only around 2
per cent. This is not an event of national importance so no such exemption
is required.”
McLaren team principal, and chairman of the Formula One Teams Association,
Martin Whitmarsh, said last week that teams were “very concerned” by the
wrangling and had taken on Ernst and Young as consultants to help find a
solution.
“You don’t go somewhere if you’re going to be penalised,” Whitmarsh said.
However, organisers Jaypee Sports International Limited (JPSI) insisted on
Wednesday that they have an “in-principle” agreement with the customs
department for custom exemption and would, if necessary, pay the customs
duties and taxes themselves.
“JPSI has full support from the government, the sports ministry and the
customs department for the F1 event scheduled for October this year. We have
an in-principle approval from the customs department for creating a customs
bonded area for F1 equipment that will be temporarily imported to India,”
Sameer Gaur, MD and CEO of JPSI said in a statement.
“If required, as per the law of the land, JPSI will pay customs duties
and taxes etc. for the temporary import of equipment. The estimated value of
this equipment is about Rs. 150 crore and the final duty payable on this
will be approximately Rs. eight crore,” Gaur added.
Eight crore rupees amounts to just over £1million.