ISLAMABAD: Ministry of Commerce has made amendment in import policy order with regard to new and used condition cars, imported under transfer of residence or under personal baggage or under gift scheme to facilitate the powerful lobby of auto sector.
Sources told this scribe that Ministry of Commerce with the consultation of Federal Board of Revenue (FBR) has amended paragraph 3(5), of the appendix-E of the Import Policy Order (IPO), 2016 which read as below that “All vehicles in new and used condition to be imported under transfer of residence or under personal baggage or under gift scheme, the duty and taxes will be paid out of foreign exchange arranged by Pakistan nationals themselves or local recipient supported by bank encashment certificates showing conversion of foreign remittance to local currency”.
In case of cars with engine capacity of 1800cc and above and 4 x 4 vehicle in new condition to be imported either under personal baggage or under gift scheme, the duty and taxes will 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, prior to aforementioned amendment.
Officials on the condition of anonymity told that car manufacturing companies were lobbying for amendment in the import policy with regards to new and used condition cars. The purpose of this is to bring out the auto sector from the crisis as imported cars are damaging business.
One of the companies had threatened to shift their plant if the policy was not changed in this regard, sources added.
On the other hand, car manufacturing companies have increased the prices of cars ranging from Rs 50, 000 to Rs 70, 000.
Commerce secretary told this scribe on Friday that the Ministry has made amendments in import policy order with regard to new and used condition cars. This permission will only be granted once so that traders can clear their cars from the port.
Currently, 6,000 cars are awaiting clearance at the port. Customs Appraisement South Customs House Karachi chief collector on Wednesday sent a letter to member customs under the subject of procedure for payment of duty on imported cars under these schemes.
The office has examined the Ministry of Commerce and Textile and State bank of Pakistan’s viewpoint, prescribing a mechanism for payment of duty taxes on import of vehicles under personal baggage or under gift scheme, the letter indicates.
The office is of the view that the instruction contained in the above referred OM, ‘to the extent of bank account of Pakistani national or their family member’ is to be implemented for vehicles whose bill of lading was issued on or after January 9, 2018, in the light of clause 4 of the import policy order.
The collectorate of appraisement Region Karachi may allow clearance of the vehicles in accordance with SRO 1067(1)2017 dated October 10, 2017 and SRO 1237(1)2017 dated December 4, 2017 on production of bank encashment certificate showing conversion of foreign remittance to local currency supported by swift message bearing reference to the importer without mentioning bank account number of the importer or his family and respect of B/Ls issued before January 9, 2018.
