The Federal Cabinet has rejected a proposal to allow one-time clearance of vintage cars stuck at ports, citing violations of the Import Policy Order (IPO).Â
According to a news report, the decision was made during a meeting on December 10, 2024, despite significant political pressure and directions from the Sindh High Court to reconsider the matter.
The Ministry of Commerce had sought permission to release vehicles imported between July 3, 2018, and March 7, 2022, under an FBR notification specifying duties and taxes. The proposal included a 10% surcharge on applicable duties.Â
However, the Cabinet concluded that the imports were unauthorized under the IPO, and permitting clearance would undermine regulatory standards.
The Cabinet reviewed the background of the issue, including FBR’s SRO 833(1)/2018, which outlined a cumulative duty of $5,000 per vintage car without aligning with the IPO. The SRO was later rescinded in 2022, further complicating matters for importers.Â
The Sindh High Court had instructed the government to deliberate on the matter and issue a detailed explanation for its decision, following petitions from car importers.
During the discussions, the Cabinet noted that allowing clearance would set a precedent for condoning violations and emphasized that permission for imports lies exclusively within the IPO’s domain. It also clarified that the FBR’s duty-specific SRO did not grant legitimacy to the imports, reinforcing the IPO’s primacy in governing trade regulations.
The Cabinet appreciated the High Court’s opportunity to reconsider the issue but maintained its stance against the clearance of the vehicles. This decision impacts over 100 vintage cars that remain stranded at ports. Importers had argued they acted in good faith under the FBR framework and had fulfilled financial obligations, but the government’s refusal leaves their cases unresolved.
