It is learnt that the authorities at the Mumbai ports have cleared these consignments under Rule 2A of the Customs Act. The companies have declared to the authorities that the imports were components, on which a lesser duty is levied in comparison to CKD/SKD kits. Components can be imported freely under the open general licence (OGL) and attract a duty ranging between 25 per cent and 35 per cent, while CKD/SKD kits are on the restricted list where a duty of around110 per cent is levied. "We fear that companies are trying to bypass the MoU route as the policy lays down strict guidelines in terms of indigenisation, minimum foreign investment and export obligation," sources added.Consequently, the DGFT wrote to the CBEC as it was keen to speed up the process as per the policy as these companies are finding it difficult to meet the stipulation with respect to indigenisation. The automobile policy lays down an indigenisation level of 50 per cent by the end of three years or earlier, from the date of clearance of the first import consignment, and 70 per cent in five years. They have sought certain relaxations from the ministry, which are being studied. Though companies have been in consultation with the DGFT for signing MoUs, barring Honda Siel Cars India Ltd, none have entered into an agreement with the government yet. Most of these companies have not achieved the stipulated localisation schedule. Earlier this year, there was some confusion arising out of a customsdefinition of CKD/SKD kits, which allows firms to import key components at very low duties. Some companies, such as General Motors India Ltd, were also entangled in a dispute with the customs authorities over the calculation of duty on the kits.