KARACHI: Pakistan has spent $531 million on vehicle import in the first four months (July – October) of the current fiscal year, according to official data released on Wednesday.
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Import of used vehicles: changes to payment of duty, taxes approved
ISLAMABAD: The government has approved changes to payment of duty and taxes system for clearance of used vehicles, which are allowed to import under three different schemes.
The Economic Coordination Committee (ECC) of the Cabinet on Wednesday on a proposal by the Commerce Division, took up the import of used vehicles under personal baggage, transfer of residence and gift schemes which require the payment of duties and taxes to be paid out of foreign exchange arranged by Pakistani nationals themselves or local recipients producing proof of conversion of foreign remittance to local currency, and allowed the importers to meet any shortfall in arrangement of required foreign remittance for payment of duties and taxes through local sources in case of a scenario where the Pak rupee depreciates or government increases the import duties and/or taxes after the receipt of remittance and before the filing of the good declaration, which results in shortfall of remitted amount vis-a-vis payable duties and taxes.
The ECC decision would help clear up a total of 1017 vehicles currently stuck at Karachi port because either no foreign remittance had been received or the remitted amount had been rendered insufficient due to depreciation of PKR before the filing or goods declaration or increase in the rate of duty in the Finance Act 2019.
On another proposal by the Commerce Division, the ECC accorded ex-post approval to an SRO issued by Commerce Division on August 21, 2019 for extending till August 31, 2019 the implementation of quality standards on the import of solar PV equipment into Pakistan under an SRO issued by the Commerce Division on May 28, 2019.
The Commerce Division had issued the SRO in late August following instructions from the Prime Minister to resolve the issue of several containers stuck up at ports due to lack of clarity amongst stakeholders, pre-shipment companies and border agencies regarding documents required for observance and implementation of the quality standards introduced on May 28, 2019 as per a decision of the federal cabinet.
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Tourists allowed temporary import of vehicles
KARACHI: Tourists visiting Pakistan are allowed to import vehicles temporarily with certain conditions under Customs Rules 2001.
According to the customs rules, a tourist who imports a vehicle against carnet-de-passage or a bank guarantee may be given delivery thereof by the officer-in-charge of the Customs station of entry without payment of customs-duties for its retention in Pakistan for a period of three months.
However, such tourist is required to make a declaration at the Customs-station of entry to the effect that he will not constructively or substantially transfer the ownership of the vehicles to any other person during his stay in Pakistan:
Provided that if it is not practicable for the tourist to export such vehicle within the said period and he makes an application to the Federal Board of Revenue (FBR) before the expiry of that period to this effect, the FBR may extend that period not exceeding three months:
Provided further that if the same vehicle re-enters Pakistan within one year after its exit, whether in the name of the same tourist (non-Pakistani) or in the name of somebody else (non-Pakistani) temporary release shall not be allowed against carnet-de-passage or a bank guarantee for more than fourteen days except for vehicles operated by recognized foreign tour agencies which shall be allowed re-entry within one year for a period not exceeding three months at one point of time.
Where the export of such vehicle is not possible on grounds of health of the importer, or in circumstances beyond his control, or because of an accident in which the vehicle is involved, the FBR may extend the period not exceeding six months, in which case a fresh bank guarantee shall be furnished if the existing bank guarantee does not cover the period of extension:
Provided that if the importer wishes to retain such vehicle beyond period for which permission for retention has been allowed, he shall obtain an import permit from the Ministry of Commerce and shall pay the Customs-duties and taxes leviable thereon on the date of its import.
If a tourist imports a vehicle for passage through Pakistan to a foreign destination, the officer-in-charge of the Customs-station of entry may, in the absence of carnet-de-passage or a bank guarantee, allow the vehicle to pass through Pakistan without payment of customs duties under escort form the Customs station of entry to the Customs-station of exit on payment of escort charges to be determined by the respective Collector.
The particulars of the vehicle so allowed to pass through Pakistan shall be endorsed on the passport of the importer.
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Overseas Pakistanis can bring vehicles under three schemes
KARACHI: Pakistani nationals residing abroad including dual nationals can import old and used vehicles into Pakistan under three different schemes.
Federal Board of Revenue (FBR) said that these schemes are included: Personal Baggage; Gift Scheme; Transfer of Residence.
The FBR further said cars not older than 03 years and other vehicles not older than 05 years can be imported under these schemes.
The structure of duty and taxes under these 03 schemes remains the same.
Motorcycles and Scooters can only be imported under Transfer of Residence Scheme, the FBR said.
Students receiving remittance from Pakistan, non-earning members of the Pakistani nationals living abroad and those who have imported, gifted or received a vehicle in past two years are not eligible under these schemes.
Old and used Vehicles of Asian Makes under these 03 schemes can be imported against the payment of the following amounts:
01. Upto 800 cc US$ 4,800 02. 801cc to 1000cc US$6,000 03. From 1001 cc to 1300cc US$13,200 04. From 1301cc to 1500cc US$18,590 05. From 1501cc to 1600cc US$22,550 06. From 1601cc to 1800cc (Excluding Jeeps) US$27,940 Depreciation in duties & taxes at the rate of 1% per month is admissible according to the age of the vehicle.
The FBR said that 50 percent exemption from duty & taxes is admissible on import of Hybrid Electric Vehicles (HEVs) of engine capacity up to 1800cc and 25 percent exemption from duty & taxes is admissible on import of HEVs of engine capacity from 1800cc to 2500cc.
IMPORT OF DUTY FREE CAR FOR DISABLED PERSONS
Duty free import of a car of engine of capacity up to 1350 cc in new condition to disabled person subject to recommendations of the Federal Board for Disabled Persons. -
Car imports fall sharply by 85 percent in first two months
KARACHI: The car imports in Pakistan have sharply fell by 85 percent during first two months of current fiscal year owing to payment restriction imposed for customs clearance.
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MCC Appraisement West announces auction of old, fresh vehicles on Sept 16
KARACHI: Model Customs Collectorate (MCC) Appraisement West announced auction of used vehicles on September 16, 2019 to be held at Al-Hamd International Container Terminal (AICT).
The collectorate to offer following vehicles for auction:
01. Toyota Hilux 3000CC Model 2009
02. Toyota Land Cruiser VX (V8) Armored 2779CC Model 2000
03. Toyota Hilux Pickup Double Cabin 2779CC Model 2008
04. Volkswagen AG Car 999CC Model 2013
05. Toyota Aqua Hybrid Car 1496CC Model 2014
06. Toyota Ambulance 3378CC, Model 2004
07. Toyota Ambulance 4WD full time 3378CC, Model 2005
08. Mitsubishi EK Space Customs Car Model 2017
09. Nissan Dayz Car Model 2017
10. Toyota Aqua Hybrid Car 1496ml, Model 2017
11. Toyota Hiace 1988CC Model 2016
12. Cast Daihatsu Car 658CC Model 2017
13. Mira 658CC Model 2017
14. Nissan Dayz ROOX 658CC Model 2016
15. Nissan Dayz Car, Model 2016
16. Honda N-Wagon Model 2016
17. Suzuki Swift RS Car Model 2017
18. Daihatsu Mira ES Car 658CC Model 2017
19. Nissan Dayz Car, Model 2016 (02 pc bumper extra)
20. Nissan Dayz Car, Model 2016
21. Suzuki Wagon-R Stingray Model 2016
22. Honda N-WGN Model 2016
23. Passo Car (MODA) 996CC, Model 2016
24. Toyota NOAH Hybrid Van 1797 mL, Model 2015
25. Toyota AQUA Hybrid 1496mL, Model 2015
26. Suzuki Every, Model 2014
27. Toyota AQUA Hybrid Car 1496mL, Model 2016
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MCC Preventive Peshawar announces auction of confiscated vehicles on Sept 11
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FBR revises additional customs duty on components for motor vehicles
ISLAMABAD: Federal Board of Revenue (FBR) has revised additional customs duty on import of components for motor vehicles.
The FBR issued SRO 936 (I)/2019 dated August 19, 2019 to amend the SRO 693(I)2006 dated July 01, 2006.
The FBR amended Appendix-I of SRO 693(I)/2006 related to import of components for motor vehicles.
As per SRO 693(I)/2006 the additional customs duty at 15 percent was imposed on goods classifiable under tariff headings of the First Schedule to the Customs Act, 1969, as specified in Appendix I to the notification.
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Payment for clearance of imported vehicles facilitated
The Economic Survey of Pakistan 2018/2019 stated that the payment for imported vehicles can now be made at the customs stage through foreign remittances received in the account of family members of the sender.
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Ministry opposes suggestions to allow commercial import of used cars
ISLAMABAD: The ministry of industries and production has opposed the suggestions to allow commercial import of used and old motor cars into Pakistan.
In an office memorandum, the ministry said that a meeting was held earlier this month with the car dealers federation to analyse suggestions to devise import and re-export of used vehicles policy 2019/2029 wherein it was unanimously observed that the dealers were interested in commercial import of used/old cars.
The ministry said that as for the investment plan of $3.2 billion, the same seems irrational as importers do not plan to build any manufacturing facilities in near future. The Engineering Development Board (EDB) has therefore opined that proposed plan will negatively affect existing OEMs, new entrants and auto part manufacturers.
The ministry further said that it is important to consider that Auto Development Policy (ADP) 2016-2021 has attracted investment of more than $1.3 billion so far from foreign investors who are at various stages of setting up their projects.
Under ADP 2016/2021, fifteen new investors have been granted Greenfield status and under Brownfield category two closed down units have been revived, the existing OEMs are enhancing their capacities, their production and other new entrants are expected to start their production/complete their manufacturing facilities shortly. As per business plans, few new entrants have planned to export as well.
“In view of above, allowing commercial import for domestic market would be against the spirit of Automotive Development Policy 2016/2021, which was prepared in consultation with Board of Investment, FBR and Ministry of Commerce etc.”
It is also pertinent to point out that import of used cars would be at odds with the relevent import policy provision, hence it is requested to reject the proposal.
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Car imports massively fall by 45pc in 10 months
KARACHI: The import of motor cars sharply declined by 45 percent during first ten months of current fiscal year owing to restriction imposed of duty and tax payment through foreign currency account and verification of remittances through banks.
According to officials statistics made available to PkRevenue.com on Tuesday, the import of cars in completely built unit (CBU) was at $213.37 million during July – April 2018/2019 as compared with $388.835 million in the corresponding period of the last fiscal year.
The ministry of commerce through SRO 52(I)/2019 dated January 15, 2019 imposed the restriction of payment of duty and taxes through foreign remittances.
The SRO stated: “All vehicles in new/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 Pakistani national sending the vehicle from abroad or, in case, his account is non-existent or inoperative, in the account of his family.”
The customs sources said that the besides restrictions of the ministry of commerce the import of cars was also declined due to restriction on non-filers of income tax in registration with provincial registration authorities.
Through Finance Act, 2018 the government imposed ban on non-filers for registering both imported and locally assembled cars. The government, however, lifted the ban on non-filers through Finance Supplementary (Second Amendment) Act, 2019 only for locally assembled cars.