Federal Board of Revenue (FBR) on Wednesday announced amendments to the rules governing the temporary import of cars by tourists.
The amendments, which were announced in SRO 454(I)/2023 on April 10, 2023, propose changes to Rules 76 and 77 of the Customs Rules, 2001.
The FBR has suggested amending the definition of a “tourist” to include foreigners visiting Pakistan for recreation, sight-seeing, or in transit for a short duration. The new definition also covers people traveling for business, domestic or health reasons, as well as those on study tours or pilgrimage. Additionally, the proposed amendments would cover individuals attending meetings or functions of a scientific, administrative, educational, social, cultural, sports, or religious nature. Finally, individuals arriving in the course of a sea cruise with a stay in Pakistan exceeding twenty-four hours would also be covered.
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The FBR also proposes that the passport number and vehicle details of the importer be recorded at the customs-station of entry using the Customs Computerized System. This information would then be communicated to the Federal Investigation Agency (FIA) for record-keeping purposes.
Furthermore, the amendments suggest that when a vehicle imported under this chapter is exported, the officer-in-charge of the customs-station of exit shall make a stamped endorsement on the importer’s passport accordingly. The endorsement would relate to the vehicle’s import and retention in Pakistan and would also be recorded in the Customs Computerized System and communicated to the FIA.
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Lastly, the amendments cover the reconciliation of carnet vehicles. The officer-in-charge of the customs-station of entry would carry out a monthly reconciliation of all vehicles entered through that customs-station. Any vehicles outstanding after the retention period would be identified, and necessary steps would be taken for the recovery of duties and taxes, as well as the seizure of such vehicles.
These proposed amendments aim to streamline the temporary import of vehicles by tourists, provide better record-keeping, and prevent any abuse of the system.
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According to existing rules, a tourist may import a vehicle into Pakistan without payment of customs duties for a period of three months if they provide a carnet-de-passage or a bank guarantee and declare at the Customs-station of entry that they will not transfer ownership of the vehicle to another person during their stay in Pakistan. If the tourist is unable to export the vehicle within the three-month period, they may apply for an extension of up to three months from the Central Board of Revenue.
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If the vehicle cannot be exported due to circumstances beyond the importer’s control, the Central Board of Revenue may grant an extension of up to six months, but a new bank guarantee will be required if the existing guarantee does not cover the extension period. If the importer wishes to keep the vehicle beyond the allowed retention period, they must obtain an import permit from the Ministry of Commerce and pay the applicable customs duties and taxes.
If a tourist is simply passing through Pakistan with a vehicle destined for a foreign country, the vehicle may be allowed to pass through without payment of customs duties on payment of escort charges, which will be determined by the respective Collector. The details of the vehicle will be recorded on the importer’s passport.
