Islamabad, March 25, 2024 – Pakistan has introduced amendments to the policy governing the import of new motor vehicles into the country, signaling significant changes in regulations.
The Ministry of Commerce has issued SRO 430(I)/2024, amending the Import Policy Order 2022.
Under the revised policy, the definition of a “new motor vehicle” eligible for import into Pakistan has been updated. According to the latest definition, a “new vehicle” refers to a vehicle manufactured within twelve months preceding the date of importation, with usage not exceeding 2000 kilometers prior to importation. This marks a notable departure from the previous restriction, which limited imports to vehicles with usage not exceeding 500 kilometers.
The Import Policy Order 2002 imposes specific conditions on the import of motor vehicles into Pakistan. Notably, vehicles older than five years are prohibited from being imported under gift, personal baggage, and transfer of residence schemes, with exceptions granted for secondhand or used bulletproof vehicles. Additionally, cars older than three years are restricted from import under certain schemes.
The determination of a vehicle’s age is based on the period from January 1st of the year subsequent to its manufacture until the date of shipment as per the bill of lading. Importers seeking to bring vehicles into Pakistan under various schemes must meet minimum stay abroad requirements, ranging from 180 days to 700 days, depending on the scheme and purpose of importation.
Furthermore, the policy outlines procedures for the payment of duties and taxes on imported vehicles. Importers are required to use foreign exchange arranged by Pakistani nationals or local recipients supported by bank encashment certificates. In the event of currency depreciation or changes in import duties or taxes before filing the goods declaration, importers are permitted to cover the shortfall through local sources.
Motorcycles and scooters may also be imported under certain conditions, subject to the same regulations applicable to vehicle imports. Moreover, agricultural machinery such as tractors, bulldozers, laser land levelers, and combined harvesters are eligible for import under gift, baggage, and transfer of residence schemes, with limitations on annual imports under the gift scheme.
In a significant provision, vehicles imported by overseas Pakistanis under the transfer of residence scheme will be released to their legal heirs in the event of the importer’s death.
