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Tag: imported vehicles

  • Pakistan’s CBU car imports plummet by 81% amid government restrictions

    Pakistan’s CBU car imports plummet by 81% amid government restrictions

    KARACHI: Pakistan’s import of completely built unit (CBU) cars dropped by 81% during the first nine months of fiscal year 2022/2023 due to government restrictions aimed at supporting the country’s balance of payments.

    Data released by the Pakistan Bureau of Statistics (PBS) on April 18, 2023, revealed that CBU car imports plunged to $47.31 million during the first nine months of the current fiscal year compared to $244.56 million in the same period of the last fiscal year.

    The federal government had imposed a ban on the import of luxury and non-essential items on May 19, 2022. The ban was lifted on August 20, 2022, following a demand from the International Monetary Fund (IMF). However, car imports remained negligible, recording a 95% decline in September 2022 compared to the same month of the previous year.

    During July to March of the current fiscal year, the overall import payment of CBU vehicles declined by 71% to $139 million compared to $480 million in the same period of the previous fiscal year. The import of CBU buses, trucks, and other heavy vehicles also recorded a decline of 52% to $1.35 billion during the period under review compared to $2.82 billion in the same quarter of the last fiscal year.

    Meanwhile, the import payment for Completely Knocked Down (CKD) cars fell by 48% to $361.35 million during the first nine months of the fiscal year 2022-2023. CKD units are the basic raw material for the local assembly of cars.

    As a result of the restrictions imposed by the State Bank of Pakistan (SBP) on the import of CKD kits, car manufacturers in Pakistan have observed temporary halts in production. Many other car makers have also announced temporary shutdowns due to insufficient inventory. The restrictions on CKD unit imports have also impacted the domestic sales of locally manufactured cars.

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  • FBR proposes changes to rules for temporary car imports by tourists

    FBR proposes changes to rules for temporary car imports by tourists

    Federal Board of Revenue (FBR) on Wednesday announced amendments to the rules governing the temporary import of cars by tourists.

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  • Complete PCT details of imported CBU motor vehicles for 25% sales tax

    Complete PCT details of imported CBU motor vehicles for 25% sales tax

    KARACHI: Federal Board of Revenue (FBR) issued Pakistan Customs Tariff (PCT) details of Completely Built Up (CBU) imported motor vehicles on which sales tax at 25 per cent is applicable.

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  • Pakistan car imports surge by 108pc as restriction eases

    Pakistan car imports surge by 108pc as restriction eases

    Car imports into Pakistan have surged by 108 per cent Month on Month (MoM) in October 2022 owing to ease in restrictions by the government.

    The import of motor cars in Completely Built Unit (CBU) into Pakistan increased to $2.70 million in October 2022 as compared with $1.3 million in previous month i.e. September 2022, according to Pakistan Bureau of Statistics (PBS).

    READ MORE: Hyderabad Customs auctions NDP vehicles on November 24, 2022

    The increase in import of CBU cars may be attributed to relaxation in import condition by the government. A complete ban was imposed in May 2022 on import of luxury and non-essential items. However, this ban was relaxed on August 20, 2022.

    However, there are still some restrictions on the import which resulted in 90 per cent to $27.83 million in October 2021 when compared with the latest number of October 2022.

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    Cumulatively, the import of CBU cars plunged by 81 per cent to $23.72 million in first four months (July – October) of current fiscal year 2022-2023 as compared with $123.53 million in the corresponding period of the last fiscal year.

    Total import of CBU vehicles recorded a decline of over 58 per cent to $89.66 million in first four months of the current fiscal year as compared with $216 million in the corresponding months of the last fiscal year.

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    The import of motor cars in Completely Knocked Down (CKD) recorded an increase of 12.47 per cent to $103.47 million in October 2022 when compared with $92 million in September 2022. It decreased by 8 per cent when compared with $112.32 million in October 2021.

    Cumulatively, the import of CKD cars recorded a decline of 31.55 per cent to $355.74 million during first four months of the current fiscal year when compared with $520 million in the corresponding months of the last fiscal year.

    Overall import of CKD vehicles fell by 33.51 per cent to $507 million during the period under review when compared with $762 million in the same period of the last year.

  • Pakistan raises Regulatory Duty to 100 % on motor vehicle import

    Pakistan raises Regulatory Duty to 100 % on motor vehicle import

    Pakistan has increased the regulatory duty on imported motor vehicles from 90% to 100%. The decision, communicated through the issuance of SRO 1571(I)/2022 by the Federal Board of Revenue (FBR), comes as part of the government’s efforts to stabilize the balance of payments and manage the outflow of foreign exchange.

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  • Pakistan’s import of CBU motor cars surges by 21% in FY22

    Pakistan’s import of CBU motor cars surges by 21% in FY22

    ISLAMABAD: The import of Completely Built Unit (CBU) motor cars into Pakistan has surged by 21 per cent in fiscal year 2021/2022.

    According to data released by Pakistan Bureau of Statistics (PBS) on Tuesday, the import of CBU motor cars increased to $310.41 million during fiscal year 2021/2022 as compared with $256.2 million in the preceding last fiscal year.

    READ MORE: Prices of KIA Motors raised up to 19.3% amid rupee devaluation

    In terms of rupee, the import of CBU motor cars posted a growth of 34.51 per cent to Rs54.67 billion during fiscal year 2021/2022 as compared with Rs40.65 billion in the preceding fiscal year.

    The overall import of CBU vehicles registered an increase of 59.3 per cent to $616.39 million in the fiscal year under review as compared with $386.95 million in the preceding fiscal year.

    The country imported CBU buses, trucks and other heavy vehicles worth $302 million and CBU motor cycles worth $4.12 million during the fiscal year 2021/2022.

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    On the other hand the import of Completely Knocked Down (CKD) motor cars recorded a massive growth of 52 per cent to $1.7 billion during fiscal year 2021/2022 as compared with $1.12 billion in the preceding fiscal year.

    The overall import of CKD motor vehicles recorded an increase of 54 per cent to $2.44 billion in fiscal year 2021/2022 as compared with $1.58 billion in the preceding fiscal year.

    Analysts believed that the import of CBU and CKD motor vehicles would fall in the current fiscal year due to high interest rates, regulatory measures and significant rise in prices of raw material in the international market.

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    Analysts believed that amid continuous decline of the local currency against greenback, further price hike in car prices is imminent. “This would be the first time where we have seen the highest frequency (4x) of price increases by the auto industry in a fiscal year,” analysts at Insight Research said.

    The main reasons are higher freight charges, abrupt movement in PKR/USD followed by launch of new model cars with lower localization which further add fuel to the price hike.

    The localization policy started in 1987 and continued till 2004, which required compulsory localization for the automotive industry. However, automobile assemblers are still behind the required level of localization.

    READ MORE: Pakistan car sales surge 54 per cent in FY22

    The major players including Indus Motors, Honda Car and Pak Suzuki have been assembling vehicles since 1992, but localization level of these assemblers are still very low despite their long presence in the market.

    In such situation, it will difficult for new players to achieve high localization as older players are still far behind the required level of localization. Moreover, local auto parts manufactures are sensitive to PKR/USD parity as they are reliant on imported raw materials for production. Thus, making the end product expose to PKR devaluation.

    The analysts said that higher interest rate environment, currency devaluation and auto financing hindrances may pose threat to demand going forward especially in low segment cars under 1000cc.

  • Pakistan allows conditional import of CBU vehicles

    Pakistan allows conditional import of CBU vehicles

    ISLAMABAD: Pakistan has allowed conditional import of Completely Built Unit (CBU) motor vehicles, which have been banned through SRO 598(I)/2022.

    The country on May 19, 2022 banned import of luxury and non-essential items in order to save foreign exchange and support the local currency, which depreciated massively.

    READ MORE: Raw materials excluded from import banned items list

    Through SRO 598(I)/2022 issued May 19, 2022, the ministry of commerce imposed ban on CBU vehicles which are importable under 49 tariff lines.

    However, the ministry of commerce clarified that prohibition of import would not apply on import of CBU vehicles if the imports in Pak Rupee (PKR) or imports through barter mechanism by land routes.

    The ministry of commerce on May 21, 2022 issued a press release stating that in order to address the balance of payments (BOP) situation in the country resulting from the increase in current account deficit (CAD) during the first 10 month of the current FY-22, import of certain luxury and non-essential items has been prohibited, vide SRO 598(I)/2022 dated 19th May, 2022.

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    However, to address the concerns of certain business quarters with regard to the implementation of the said SRO, it is clarified that in terms of proviso to the paragraph-4 of the Import Policy Order, 2022, the imports where Bill of Lading (B/L) or irrevocable Letter of Credit (L/C) was issued or established prior to the notification of the SRO 598(I)/2022 dated 19.05.2022 shall be exempt from the operation of the SRO.

    Hence, imported goods for which B/L or irrevocable L/C was established prior to 19th May, 2022 shall not be subject to the prohibitions contained in the said SRO.

    Moreover, the business community and the general public are invited to share their concerns, proposals or any anomalies with respect to the said SRO at [email protected].

  • Customs Intelligence Karachi auctions imported vehicles on Jan 07

    Customs Intelligence Karachi auctions imported vehicles on Jan 07

    The Directorate of Customs Intelligence and Investigation Karachi has announced an upcoming auction of old and used imported vehicles scheduled for January 7, 2022.

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  • Customs duty collection from imported vehicles surges by 95%

    Customs duty collection from imported vehicles surges by 95%

    Official data released on Monday indicates a remarkable upswing in the collection of customs duty from imported vehicles during the fiscal year 2020/2021, reflecting a staggering 95 percent growth, reaching Rs111 billion. This surge is in stark contrast to the Rs56.85 billion recorded in the preceding year.

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  • Tarin assures car importers of maximum support

    Tarin assures car importers of maximum support

    ISLAMABAD: Shaukat Tarin, Adviser to the Prime Minister on Finance and Revenue, assured an association of car dealers and importers of maximum support in resolving their issues during a meeting held on Friday.

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