Duty-Free Vehicle Import Facility Withdrawn

Tue May 09 2023
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ISLAMABAD: The Pakistani government has reversed the facility of temporary import of duty-free cars for overseas Pakistanis and restricted it to foreign tourists.

A series of amendments were made through the customs notification, SRO533, by amending rules for the temporary import of cars.

Over the previous five years, 1000 vehicles entered Pakistan under the tourist facility, while 900 were verified to have left the country. The Customs Department is looking for the remaining 100 cars, including untraceable heavy bikes.

Under this facility, the Pakistani government allowed tourists to bring vehicles into Pakistan and take them back to their home country.

Three crucial changes have been introduced in the facility. The main change was that the temporary import of car facilities was withdrawn for Pakistani passport holders. Now foreign passport holders would be allowed to bring vehicles into the country.

All manual procedures have been done away with and replaced with a computerised system to help travellers and to keep the check on misuse of the facility.

At the same time, a monthly report would be prepared to check the status of vehicle overstays and to suggest timely penalties.

At the end of every month, an officer in charge at a customs station of entry would reconcile all vehicles which enter through that station. If the records reveal that duties and taxes are outstanding against a car after the expiry of the retention period, steps would be taken to recover all dues. Seizure of the vehicle may be considered.

The official announcement of the FBR said to check the misuse of carnet de-passage/temporary import of vehicles by foreigners/expatriate Pak­istanis. The FBR has issued SRO 533 to amend the temporary vehicle import rules covered under Chapter VI of the Customs Rules 2001.

Carnet is the world customs document that permits duty-free and tax-free import of different goods for one year.

Definition of ‘tourist’

Under the latest rules, the definition of “tourist” has been updated. New provisions have been incorporated to monitor carnet-related information through Pakistan Customs’ digital system and by liaising closely with the Federal Investigation Agency.

The tourist’s passport would be flagged with carnet documents to properly reconcile vehicles imported under the facility.

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