FBR mulls amendments to Export Facilitation Scheme for govt’s refurbished vehicle import, re-export initiative

The Federal Board of Revenue is preparing amendments to the Export Facilitation Scheme 2021 to support the government’s proposed refurbished vehicle import and re-export initiative, Business Recorder reported, citing sources in the Commerce Ministry.

The proposed changes include a disposal mechanism for used or salvaged auto parts left over during repair and restoration of imported vehicles and components.

Under the proposed amendments, temporary import of vehicles under PCT heading 8703 would be allowed for companies with repair and refurbishment facilities verified by the Engineering Development Board and registered with FBR under the EFS.

The imported vehicles would be allowed strictly for repair, restoration, refurbishment and re-export purposes. Importer-cum-exporters would also be required to submit annual reconciliation statements to the relevant regulatory collectorates.

The amendments follow the government’s decision to revise the Import Policy Order 2022 to allow temporary import of vehicles for repair, refurbishment and subsequent re-export.

According to the Ministry of Commerce, the Special Investment Facilitation Council, during the 14th meeting of its Sectoral Executive Committee held on June 18, 2025, approved launching a pilot project for the import and re-export of refurbished vehicles.

The SIFC also decided to expand the framework to include refurbishment and re-export of plant machinery and other equipment.

Sources said the current Import Policy Order 2022 generally prohibits the import of used vehicles and second-hand auto parts under Appendix-C, except for limited categories including ambulances, firefighting vehicles and bulletproof vehicles.

A working group led by the Ministry of Industries and Production held several meetings to assess the feasibility of the pilot project under the EFS 2021 framework.

According to officials, stakeholders supported amendments to both the Export Facilitation Scheme and the Import Policy Order to operationalise the proposal.

The Ministry of Commerce informed a ministerial forum that stakeholders had endorsed proposals for submission to the Economic Coordination Committee of the Cabinet.

The proposed amendments would also permit the temporary import of used auto parts under similar conditions exclusively for refurbishment and repair activities.

Officials said imported vehicles and parts would not be allowed to be sold, transferred or disposed of within the domestic tariff area under any circumstances.

The forum approved the Commerce Ministry’s proposal with the condition that the initiative would be reviewed by the ECC after one year.