Pakistan bans import of cars older than three years: IPO

Pakistan has banned import of cars older than three years under Import Policy Order (IPO), 2022. However, vehicles old up to five years can be imported under the policy.

Officials in the Federal Board of Revenue (FBR) stated that a procedure has been issued for import of vehicles under personal baggage, transfer of residence and gift schemes.

According to the procedure, Pakistan nationals are eligible to import or gift a vehicle: Provided that students receiving remittance from Pakistan, non-earning members of families of the Pakistan national and those who have imported, gifted or received a vehicle during the last two years are not eligible.

“Vehicles may be imported as personal baggage or on Transfer of Residence or as gift.”

The import policy order stated that vehicles more than five years old shall not be allowed to be imported under gift, personal baggage and transfer of residence schemes, but this condition shall not apply to secondhand or used bullet proof vehicles, if imported under these schemes:

“Cars older than three years shall not be allowed to be imported under gift, personal baggage and transfer of residence schemes,” it added.

It further explained that the age of the vehicle shall be determined from the first of January of the year subsequent to the year of manufacture till the date of shipment as per bill of Lading.

Minimum stay abroad for import as personal baggage shall be 180 days within the last seven months preceding the date of application.

Minimum stay abroad requirement for gifting a vehicle or importing under transfer of residence shall be at least 700 days during the past three years.

A vehicle may be gifted only to a family member normally resident in Pakistan. “Family” means parents, sister, brother, husband, wife and children whether married or not, but excluding children under eighteen years of age.

All vehicles in ne used condition to be imported under transfer of residence, personal baggage or under gift scheme, the duty and taxes shall be paid out of foreign exchange arranged by Pakistan Nationals themselves or local recipient supported by bank encashment certificate showing conversion of foreign remittance to local currency, as under:

a) The remittance for payment of duties and taxes shall originate from the account of Pakistani national sending the vehicle from abroad; and

b) The remittance shall either be received in the account of the Pakistani national sending the vehicle from abroad or in case, his account is non-existent or inoperative in the account of his Family:

Provided that in case the Pak Rupee depreciates or government increases the import duties or taxes after receipt of remittance and before filing of the goods declaration, which results in shortfall of remitted amount against payable duties and taxes, the importer shall be allowed to meet the shortfall through local sources.

A motorcycle or scooter shall be allowed to be imported upon transfer of residence, provided that there shall be no entitlement to import a vehicle and the same conditions shall apply mutatis mutandis, as are applicable to import of a vehicle.

Agricultural tractors, bulldozers, laser land levelers and combined harvesters will also be allowed under gift, baggage and transfer of residence schemes subject to the same conditions as applicable for import of vehicles. However, import thereof under gift scheme will be allowed once every year.

Vehicle imported by an overseas Pakistani under transfer of residence scheme shall be released to the legal heir(s) in case of his/her death.