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Import of Vehicles Customs Guide in Pakistan

Step-by-Step Guide: How to Import Used Vehicles into Pakistan

As per the Import Policy Order 2022 (Appendix-E)

Step 1: Introduction

Used vehicles can only be imported into Pakistan once every two years (700 days) by non-resident Pakistanis under the following schemes:

  1. Personal Baggage
  2. Transfer of Residence
  3. Gift Scheme (to family members: parents, siblings, spouse, or children above 18 years old).

Key Points:

  • Duties and taxes must be paid in full by the importer using their personal accounts.
  • A PRC (Payment Receipt Certificate) must be provided to the Customs Department.
  • Students or non-earning members of non-residents are not eligible.

Step 2: Eligibility Requirements

Import of vehicles is allowed under one of the following schemes:

1. Personal Baggage Scheme

  • Requires a minimum stay of 180 days abroad in the past 7 months preceding the date of application.

2. Transfer of Residence Scheme

  • Requires the applicant to have stayed abroad for at least 700 days in the preceding 3 years.

3. Gift Scheme

  • A vehicle can only be gifted to a family member (parents, siblings, spouse, or children above 18 years old).
  • The applicant must have stayed abroad for at least 700 days in the preceding 3 years.

Additional Notes:

  • Vehicles older than 5 years are not allowed for import (except bulletproof vehicles).
  • Cars older than 3 years are not allowed for import.
  • Age Calculation: The age of the vehicle is determined from 1st January of the year subsequent to the year of manufacture until the date of shipment (as per the bill of lading).
    • Example: A vehicle manufactured in 2018 and shipped on 30th September 2020 will be considered 1 year and 9 months old.
  • New Vehicle Definition (IPO Section 2(M)): A vehicle is considered new if:
    • Manufactured within 12 months preceding the date of import.
    • Not registered or used for more than 500 kilometers prior to import.

Step 3: Regulatory Requirements for Import

  1. Duties & Taxes:
    • Applicable duties and taxes must be paid in full by the importer.
  2. Required Documents:
    • Original passport
    • Original or express bill of lading (OBL) / air waybill (AWB)
    • Original technical passport/certificate of title
    • De-registration certificate
    • Invoice of purchase showing engine number, model, and horsepower
    • PRC (Payment Receipt Certificate)
  3. Goods Declaration:
    • A detailed declaration of the imported vehicle must be submitted to Customs.

Step 4: Cost of Importing a Vehicle

The total cost of importing a vehicle depends on several factors, including:

  • Customs Duties: Calculated based on the CIF (Cost, Insurance, and Freight) value.
  • Depreciation: Maximum depreciation allowed is 60% for used vehicles.
  • Additional Taxes: Other applicable taxes as per the Import Policy Order.

Step 5: How Assessment is Performed

Customs assessment is conducted as follows:

  1. ITP Valuation Rulings:
    • Assessment is based on the Manufacturer Suggested Retail Price (MSRP) and ITP Valuation Rulings issued from time to time.
  2. Local Authorized Dealers:
    • Customs consults local authorized dealers (if available) to certify the FOB (Free on Board) value of the imported vehicle, as per CGO 14/2005.
  3. MSRP from Manufacturer’s Website:
    • If no authorized dealer is available, Customs relies on the MSRP listed on the manufacturer’s official website in the country of export.
  4. Reliable Websites:
    • If the manufacturer’s website is unavailable, Customs uses established and reliable websites to determine the MSRP based on the latest Valuation Ruling and Office Orders.

Key Reminders:

  • Ensure all documents are complete and accurate to avoid delays in customs clearance.
  • Use your personal account to remit duties and taxes and obtain the PRC.
  • Consult with Customs or a professional clearing agent (e.g., Mahir Packers and Movers) for assistance with the import process.

For further details, refer to the Import Policy Order 2022 (Appendix-E) or visit the Federal Board of Revenue (FBR) website: www.fbr.gov.pk.

Mahir Packers and Movers is here to assist you with all your vehicle import needs. Contact us today for expert guidance and support!