Lahore, July 15, 2024 – In a significant move, the Federal Tax Ombudsman (FTO) has clarified the regulations for overseas Pakistanis regarding vehicle importation. The ruling specifies that expatriates can import vehicles under the baggage scheme, transfer of residence scheme, and gift scheme, provided they adhere to a newly enforced two-year interval.
Two-Year Limit and New Safeguards
The decision, delivered by FTO Dr. Asif Mahmood Jah, asserts that overseas Pakistanis can import vehicles only if they haven’t imported, gifted, or received a vehicle in the past two years through the Import Policy Order (IPO) 2022. This interval is designed to prevent the exploitation of import privileges and ensure the system’s integrity.
Addressing Passport Misuse
To tackle the issue of circumventing the two-year limit by obtaining new passports, the FTO has mandated a robust verification system. FTO Advisor Dr. Waqar Ch. Arain announced that the Director of Reforms & Automation in Karachi has been tasked with developing a mechanism to track import history across multiple passports used by the same individual. This measure is intended to close loopholes and enforce compliance.
Background of the Ruling
The ruling follows a complaint against the Chief Collector of Appraisement (South) in Karachi and the Director of Reforms & Automation. The grievance underscored delays in vehicle clearance for overseas Pakistanis and the potential misuse of immigration data. The FTO’s intervention aims to address these concerns and streamline the import process.
Previous System and the Gap
Under the previous system, the Web-Based Customs Management System (WeBOC) restricted the submission of import declarations (GDs) on the same passport number within two years. However, individuals could bypass this restriction by acquiring a new passport, leading to repeated imports within the restricted period.
New Safeguards and Future Implications
The FTO’s directive includes additional checks within the WeBOC system for any new passports presented by importers. These checks ensure that the vehicle importation complies with the two-year limit established by the IPO. The implementation of these safeguards is expected to prevent the misuse of the system and promote fairness.
Overall Impact
This ruling provides crucial clarity for overseas Pakistanis regarding vehicle imports under the specified schemes. The enhanced safeguards within the WeBOC system will prevent abuse and ensure a more equitable process. This measure is anticipated to streamline operations and foster trust in the regulatory framework governing vehicle imports.