Tag: imported vehicles

KARACHI: Import of motor vehicles in completely built-up unit (CBU) condition registered phenomenal growth of 148 percent in April 2020 despite restrictions to foreign trade owing to lockdown for preventing coronavirus pandemic.

According to data released by Pakistan Bureau of Statistics (PBS) the import of motor vehicles in CBU condition increased to $10.77 million in April 2020 as compared with $4.34 million in the same month of last year.

Sources said that due to coronavirus pandemic many overseas Pakistanis opted to return homeland and they brought household along with them.

It is interesting to note than due to the pandemic most of the imported goods registered massive decline in the month of April 2020 due to restrictions imposed on the foreign trade.

Whereas, the lockdown imposed in the country not a single locally manufactured car was sold during April 2020.

The commercial import of motor car is not allowed in Pakistan. However, overseas Pakistanis are allowed to bring motor car under three different ways including personal baggage, transfer of residence and gift schemes.

The import of CBU motor vehicles registered 64.58 percent decline to $75.57 million during first ten months (July – April) 2019/2020 as compared with $23.37 million in the corresponding period of the last fiscal year.

The overall decline in import of motor vehicles can be attributed to measures taken by the government to discourage misuse of the facility which is only allowed to overseas Pakistanis.

Last fiscal year the government brought changes to these schemes and customs clearance of imported cars under these schemes only through payment made out of foreign exchange, which should be verified by banking system.

Recently, the ministry of commerce through a SRO issued on December 30, 2019 amended in payment system for clearance of imported cars under which local resource could be utilized in case of shortage of payment due to enhancement of exchange rate fluctuation or enhancement in duty rate etc.

The import of motor vehicles in completely knocked down (CKD) condition registered 40 percent decline to $405.6 million during first ten months of current fiscal year as compared with $678.76 million in the corresponding period of the last fiscal year.

Industry sources said that the decline in motor vehicles in CKD condition was due imposition of duty and taxes in the last budget, which resulted in hike in prices of locally manufactured cars.

Besides, slowdown in economy in pre-Covid and later imposition of lockdown to prevent coronavirus spread also discourage the sales of locally manufactured motor cars.

KARACHI: The import of used and old cars witnessed sharp decline of 69 percent during first nine months (July-March) of current fiscal year due to imposition of condition regarding payment of duty and taxes through foreign exchange.

The import of used and old cars in Completely Built Unit (CBU) condition declined by 69 percent to $64.8 million during July – March 2019/2020 as compared with $209.03 million in the corresponding period of the last year, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

The commercial import of used or old cars is prohibited under prevailing laws of the country. However, in order to facilitate expatriate Pakistanis the government allows incentives to bring cars into the country.

The Federal Board of Revenue (FBR) allowed Pakistani nationals residing abroad including dual nationals, can import old and used vehicles into Pakistan under these schemes, included: Personal Baggage; Gift Scheme; and Transfer of Residence.

The cars not older than three years and other vehicles not older than five years can be imported under these schemes.

In the past these schemes were misused and bulk of imported cars brought into the country.

However, the ministry of commerce in February 2019 amended Import Policy Order, 2016 and made it mandatory for clearance of cars through foreign exchange, which should be certified by banks.

Since then the clearance of the cars has come to a standstill. Customs authorities said that a large number of imported cars were at the port but importer had failed to make payment as per procedure prescribed by the ministry of commerce.

However, in November 2019 a meeting of Economic Coordination Committee (ECC) decided to allow payment for duty and taxes for customs clearance of imported cars through local resources with condition that if foreign exchange becomes short due to currency fluctuations or change in duty and tax rates.

The overall import of CBU vehicles during first nine months of current fiscal year fell 59 percent. The import of heavy vehicles including buses and trucks has declined by 39.32 percent. While import of CBU motorcycles fell by 74 percent.

On the other hand the import of cars as Completely Knocked Down (CKD) condition also fell by 43 percent to $343.42 million during July – March 2019 as compared with $611.38 million in the same period of the last fiscal year.

Massive depreciation in the local currency during past couple of years had increased the cost of local car manufacturers. Further, the rates of locally assembled cars for end consumers also jumped up sharply.

These factors have reduced the productions of locally manufactured cars and subsequently reduced the import of cars in CKD condition.

The overall import of vehicles in CKD fell by 42.16 percent to $545 million during first nine months of 2019/2020 as compared with $942 million in the corresponding period of the last fiscal year.

KARACHI: The import of used and old cars plunged by 77 percent during first seven months (July-January) of 2019/2020 due to condition of payment of duty and taxes through foreign exchange imposed by the government.

The import of used and old cars in Completely Built Unit (CBU) condition fell by 77 percent to $43.64 million during July – January 2019/2020 as compared with $193.43 million in the corresponding period of the last year, according data released by Pakistan Bureau of Statistics (PBS) on Monday.

The commercial import of used or old cars is not allowed under prevailing laws of the country. However, in order to facilitate expatriate Pakistanis the government allows incentives to bring cars into the country.

The Federal Board of Revenue (FBR) has allowed Pakistani nationals residing abroad including dual nationals can import old and used vehicles into Pakistan under these schemes: Personal Baggage; Gift Scheme; and Transfer of Residence.

The cars not older than three years and other vehicles not older than five years can be imported under these schemes.

In the past these schemes were grossly misused and bulk of imported cars brought into the country.

However, the ministry of commerce in February 2019 amended Import Policy Order, 2016 and made it mandatory for clearance of cars through foreign exchange, which should be certified by banks.

Since then the clearance of the cars has come to a standstill. Customs authorities said that a large number of imported cars were at the port but importer had failed to make payment as per procedure prescribed by the ministry of commerce.

However, in November 2019 Economic Coordination Committee (ECC) decided to allow payment for duty and taxes for customs clearance of imported cars through local resources with condition that if foreign exchange becomes short due to currency fluctuations or change in duty and tax rates.

The overall import of Completely Built Unit (CBU) vehicles during first seven months of current fiscal year fell 71 percent. The import of heavy vehicles including buses and trucks has declined by 59 percent. While import of CBU motorcycles fell by 74 percent.

On the other hand the import of cars as Completely Knocked Down (CKD) condition also fell by 46.46 percent to $261 million during July – January 2019/2020 as compared with $487.6 million in the same period of the last fiscal year.

Industry sources said that massive depreciation in the local currency during past couple of years had increased the cost of local car manufacturers.

Further, the rates of locally assembled cars for end consumers also jumped up sharply.

These factors have reduced the productions of locally manufactured cars and subsequently reduced the import of cars in CKD condition.
The overall import of vehicles in CKD fell by 45.58 percent to $417.2 million during first seven months of 2019/2020 as compared with $766.54 million in the corresponding period of the last fiscal year.

ISLAMABAD: The import of imported cars has sharply fell by 81 percent during July – November of 2019/2020 owing to restriction imposed by the government for customs clearance through payment in foreign exchange.

The country spent $26.1 million for import of completely built units (CBU) cars during first five months of current fiscal year as compared with $135 million in the corresponding months of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS) on December 17, 2019.

As per law the commercial import of used or old cars is not allowed. However, in order to facilitate Pakistanis living abroad the government has allowed incentives to bring cars into Pakistan.

According to Federal Board of Revenue (FBR), Pakistani nationals residing abroad including dual nationals can import old and used vehicles into Pakistan under these schemes: Personal Baggage; Gift Scheme; and Transfer of Residence.

Cars not older than three years and other vehicles not older than five years can be imported under these schemes, the FBR said.

In the past these schemes were grossly misused and bulk of imported cars brought into the country.

However, the ministry of commerce in February 2019 amended Import Policy Order, 2016 and made it mandatory for clearance of cars through foreign exchange, which should be certified by banks.

Since then the clearance of the cars has come to a standstill. Customs authorities said that a large number of imported cars were at the port but importer had failed to make payment as per procedure prescribed by the ministry of commerce.

The import of cars started declining in the last fiscal year. The import of CBU cars fell by 51.33 percent to $222 million in fiscal year 2018/2019 as compared with $456 million in the preceding fiscal year.

The overall import of CBU vehicles during first quarter of current fiscal year fell 74 percent. The import of heavy vehicles including buses and trucks has declined by 42 percent. While import of CBU motorcycles fell by 75 percent.