Karachi, October 25, 2024 – The Federal Board of Revenue (FBR) has announced significant amendments to regulations governing the temporary import of vehicles by tourists, aimed at enhancing compliance and ensuring that imported vehicles are utilized solely for travel purposes.
These draft amendments, outlined in SRO 1650(I)/2024, were released today to address the evolving challenges associated with cross-border vehicle movement and to prevent misuse of the current import facilities.
The proposed regulations permit tourists to import vehicles temporarily under a “carnet de passage” or a valid bank guarantee, without incurring customs duties, for a maximum period of three months. However, the importers must declare at the customs entry point that they will neither transfer nor sell the vehicle during their stay in Pakistan. This measure underscores the FBR’s commitment to limiting the misuse of temporary imports for commercial or local usage.
If circumstances prevent the vehicle from being exported within the specified three-month timeframe, tourists can apply for an extension, subject to approval by the local customs collector. However, extensions are capped at an additional three months, contingent upon the submission of a renewed carnet de passage or bank guarantee, ensuring the FBR maintains strict control over the vehicle’s temporary status.
In a bid to counteract repeated short-term imports, the FBR has stipulated that vehicles re-entering Pakistan within a year after their exit will not be granted an extended temporary release. Such vehicles, whether brought in by the same tourist or another non-Pakistani visitor, will only be eligible for a maximum of 14 days. Exceptions exist only for vehicles operated by registered foreign tour agencies, which are allowed to re-enter for a duration of up to three months within a year, ensuring that recognized tourism facilitators retain operational flexibility without compromising regulatory oversight.
The amendments also make provisions for exceptional cases, such as health issues, accidents, or other unforeseen circumstances that might prevent the export of a vehicle. Under these conditions, the FBR may grant a further extension of up to six months, but only if the existing bank guarantee or carnet de passage is extended to cover the prolonged period. Failing this, tourists will be required to surrender the vehicle to the relevant customs authorities.
For tourists seeking to retain their vehicles in Pakistan beyond the authorized period, an import permit from the Ministry of Commerce is mandatory. In such cases, full customs duties and taxes become payable, ensuring adherence to Pakistan’s import regulations and fiscal policies.
The amendments also address transit vehicles, permitting tourists to bring vehicles through Pakistan en route to other destinations without customs duties. However, if these vehicles lack a carnet de passage or bank guarantee, they will need to be escorted from the entry to the exit customs point, with the escort fees determined by the customs authorities. This directive, designed to streamline transit vehicle management, includes stamping the vehicle’s passage in the tourist’s passport to document the import and exit process formally.
Through these amendments, the FBR aims to bolster transparency and accountability in the temporary import of vehicles, safeguarding Pakistan’s economic interests while supporting legitimate tourism. Once ratified, these regulations are expected to reinforce compliance, deter misuse, and ensure that temporary imports align with national economic and security considerations.