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Pakistan Vehicle Import Regulations |
Pakistan Import Regulation |
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Importing a Motor Vehicle In Pakistan |
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Every overseas Pakistani, subject to fulfillment of eligibility conditions as laid down in The Import Trade and Procedure Order, 2000 can import a vehicle from abroad. However, students receiving remittances from Pakistan, non earning member of families of the Pakistani National and those who have imported/gifted vehicle during the last two years can not import a vehicle under the said Rules. The import policy is often revised from time to time, usually after every financial year. Therefore the latest updated version of import policy order must be consulted. As far as import of vehicles by passengers or overseas Pakistanis is concerned. The Personal Baggage and Gift Schemes (Import of Vehicles) Rules, 2000, Import Trade and Procedure Order, 2000 and CBR Circular No.4 of 1998 dated 03.06.1998 regarding Capital Value Tax provide details of conditions and procedural formalities. |
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vehicles are importable under Personal Baggage/Gift Scheme and TR Scheme |
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New or upto 2 year old Car, Bus, Van, Truck and Pickup and 4x4 vehicles are importable under Gift and Personal Baggage Scheme and vehicles of same type which are more than two years old are importable under TR Scheme as per Import Trade and Procedure Order, 2000. |
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Franquantly Asked Question By Importers, Exporters, Dealers |
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My Brother went to USA one year ago for studies and now he is returning after completion of study. Can he bring a car ? |
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A student receiving remittance from Pakistan is not eligible to import a car in terms of condition-2 of Appendix-G of Import Trade and Procedure Order, 2000. If your brother is not receiving any remittances from Pakistan and the vehicle is purchased from his own earnings abroad he is also covered under the Rules. |
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We have appointed a foreign national in our firm on contract basis. Can he bring a car alongwith him ? |
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yes, A non privileged foreign national who comes to Pakistan on a specific contract of service with any local and foreign firm or with a Government or semi-Government Authority in Pakistan can bring a car as personal baggage. The vehicle can only be released on production of employer’s contract (service certificate) and on payment of custom duty and other taxes. |
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How can an overseas Pakistani bring a new car on his return to Pakistan? |
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An overseas Pakistani who has been residing abroad for the last seven months and has spent 180 days abroad during the last seven months can bring a new car under the Import Trade and Procedure Order, 2000. However, if he brings a vehicle of 1800cc and above or 4x4 vehicle, customs duty and other taxes will be paid in foreign exchange supported by bank encashment certificate. |
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I am returning from abroad after a two month stay ? Can I bring a car or any other vehicle as part of my baggage? |
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The minimum stay requirement for bringing a vehicle in baggage is 180 days. Since, your stay is only 60 days you are not eligible to import a vehicle under the Import Trade and Procedure Order, 2000. |
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My brother spent 8 months in Dubai and intends to return next month. Can he bring a car ? If yes, What types of vehicles he is allowed to import ? |
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A person who spent some time in other country he is also eligible to import one vehicle under the Import Trade and Procedure Order, 2000, but the used vehicle must not be more than two years old (from the date of entry into Pakistan) under baggage scheme. The old and used vehicle must be registered in your brother’s name at least 60 days prior to his departure for Pakistan. The two years old vehicle means a vehicle which is manufactured two years before the date of import, e.g. a vehicle manufactured in January, 1999 is importable upto the end of 2001. |
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My friend has sent me a 5 year old used car. How can I release the car ? |
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A vehicle, more than two years old, is not importable under gift scheme and a person residing abroad can not gift a car to anyone except his mother, father, wife and adult children. The car can only be released on production of specific release permission from the Ministry of Commerce otherwise the vehicle will be liable to confiscation and disposal through auction. However, you can send this car back to your friend after obtaining permission from Customs in terms of condition 6 of Import Trade & Procedure Order, 2000. |
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Can an overseas Pakistani bring one old and used motorcycle in lieu of car under Personal Baggage TR Scheme ? |
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No, old and used motorcycle is not importable under Personal Baggage and TR Scheme in terms of Import Trade and Procedure Order, 2000. Only passenger motor car, bus, van and pickups including 4x4 vehicles are covered under the definition of vehicle under the said Rules. |
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My brother is residing in USA and holds USA nationality. Can he bring a car under Personal Baggage / Gift Scheme ? |
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No, he is not entitled to import a car under Personal Baggage / Gift Scheme. However, a citizen of Pakistan residing abroad having dual nationality can import a car under Pakistani Passport but the foreign passport is also required for confirmation of requisite stay abroad. |
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If I am unable to pay the duty, taxes assessed on my car, what will happen? Can I send my car back? |
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The car will be liable for disposal through auction. You can however claim the sale proceeds after deduction of all leviable duty, taxes and other charges. (However you can send it back after obtaining NOC from Ministry of Commerce and State Bank of Pakistan. |
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How do you work out duty, taxes on a vehicle? What will be the total duty, taxes upon, say Toyota Corolla Car, 1998 model with 1600cc petrol engine? |
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The duty rate is determined from Pakistan Customs Tariff, which is 1st Schedule of the Customs Act, 1969. The rates are fixed through Finance Bill by the legislature. The rates are advalorem, e.g., 150% of value of the car. Thus value of the vehicle forms the basis of determining customs duty. Value of the vehicle is determined on the basis of guidelines provided in Customs General Order No. 04/93 dated 07-07-1993. According to the instructions, the FOB (Free on Board) value which normally also includes agent’s commission is obtained from the manufacturer of the imported vehicle. Freight (as fixed vide CGO 4/93), insurance @ 1% of FOB value and landing cost @ 1% are added to arrive at the final assessable value. On this value, Rate of Custom Duty (as provided in Tariff) which depends on factors like engine capacity, engine type, seating capacity etc is applied to obtain payable Customs Duty. The Customs duty so determined is added to the ascertained value and on this enhanced value (customs
duty paid value), Sales tax rate is applied to obtain leviable sales tax. The sales tax so determined is added to the customs duty paid value to obtain value for levy of advanced income tax @ 6%. The Capital Wealth Tax is collected on ascertained value inclusive of custom duty, sales tax and income tax, on the rates as provided under circular No.4 of 1998 issued by the Central Board of Revenue. A list of duty, taxes calculated on the basis of existing duty rates, value and exchange rates is attached as (Annex- ). You may consult the list for reference purpose. But duty and taxes may vary as fluctuations in exchange rates or tariff rates may enhance or lessen the duty and taxes. As per customs tariff 2000-2001, the customs duty for a motor car of 1600cc is 150%, sales tax 15%, income tax 6% and capital value tax is 6.25%. The duty and other taxes for Toyota Corolla car 1600cc come to Rs.11,67,607.00 if imported under Transfer of Residence Scheme. The statement at (Annex- ) shows the duty and other
taxes for various types of vehicles for reference purpose |
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My relative is returning from abroad after more than 180 days but he does not know the procedure of importing a vehicle in baggage. Could you please clarify as to what documents will be required and what procedure be followed ? |
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He is entitled to import one new or upto two years old vehicle, if he is returning from abroad after completing 180 days from the date of departure from Pakistan to the date of arrival in Pakistan according to the current Import Policy of 2000. If the vehicle is old and used, it must be registered in his name at least 60 days prior to his departure for Pakistan. The following documents will be required to be produced to Customs Authorities.
- Purchase receipt of the vehicle.
- Bill of lading (this document is issued by the shipping company at the time of booking of the vehicle for Pakistan).
- Photocopy of passport duly attested by the Embassy / Consulate of Pakistan abroad.
- The registration documents in case of used vehicles.
- The registration documents in case of used vehicles.
In Custom House, Karachi the clearance of vehicles is done by Group-VIII of Appraisement Collectorate located at First Floor. The passenger who imports the vehicle himself presents the aforementioned documents to import authorization cell (located at ground floor of Custom House, Karachi) alongwith original passport. The staff posted in this cell provides an import authorization form (Free of cost) and the passenger after filling the form delivers it to the concerned staff alongwith above mentioned documents, which after scrutiny is submitted to Deputy / Assistant Collector incharge of Group-VIII for approval /signature.
After approval / signature of the import authorization form, the original documents are handed over to the passenger and the vehicle is cleared upon filing of bill of entry through the Customs approved clearing agent after payment of duty and other taxes. Similarly, vehicle can also be cleared at other Customs Stations i.e. Lahore, Multan, Faisalabad, Sialkot, Quetta, Hyderabad, Rawalpindi and Peshawar.
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I remained in the UK for three years. Now I am shifting back to Pakistan and transferring all my household goods. Can I bring a car as part of my baggage ? What allowances are applicable in my case ? |
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Yes, you can bring the vehicle alongwith your baggage provided the vehicle is registered in your name for atleast two years abroad and your have a valid driving licence and you have not remained in Pakistan for more than 30 days during the last six months from the date of your final departure for Pakistan. The vehicle’s registration documents must be signed and stamped from the Embassy / Consulate of Pakistan in the country of normal residence abroad. Depreciation at the rate of 4% for first three months, and 2% per month for the subsequent month with a maximum of 50% depreciation, in the value of the vehicle as certified by the manufacturers is allowed in terms of para 2(b) of CGO 4/93. No further allowances or abatements are admissible. |
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I am residing in UAE for the last one year but frequently visited Pakistan and my stay abroad is less than 180 days, can I bring a car under Personal Baggage ? |
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No, you are not entitled. In this situation, if Ministry of Commerce, Islamabad permits short stay condonation you can import a new or upto two year old car, provided the old and used vehicle is registered in your name for atleast 60 days prior to your departure for Pakistan. |
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I am residing in Japan for the last seven months and intend to import a used car of 1600cc or 1800cc under Baggage Scheme. What allowance are applicable to my car ? |
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Old and used vehicles not more than two years old upto 1800cc imported under Personal Baggage Scheme are not entitled for any depreciation in value as per clause 2(a) of CGO 4/93 dated 07-07-1993. However, the depreciation in value is admissible to more than two years old vehicles of upto 1800cc if imported under Transfer of Residence Scheme vide Appendix-G of Import Trade and Procedure Order, 2000. |
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My brother resides in foreign country. He wants to send us two cars. Can he send them and what will be the procedure ? |
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Gifting of two cars is not permissible. He can gift only one new or upto two years old car during the last two years of stay abroad to a family member. The family member means father, mother, wife and children above 18 years age provided he has been residing abroad for more than 23 months and not visited Pakistan for more than 30 days during the last six months from the date of gifting the car.
For gifting a car he has to directly approach the Embassy / Consulate of Pakistan at his place of residence abroad for obtaining "Gift certificate" and "Earning certificate" and after obtaining both the certificates he should get attested the photocopy of his passport. He can then gift the vehicle. After gifting the vehicle the relevant documents i.e. gift undertaking, earning certificate, attested copy of passport, bill off lading and invoice be forwarded to the giftee. The giftee on receipt of documents himself or in case of ladies through their attorney should present the above mentioned documents alongwith original NIC to the office of IP Cell in the concerned Custom House, for clearance of vehicle.
The staff posted in IP Cell after scrutiny of the documents will issue import authorization with approval of the Deputy Collector /Assistant Collector incharge and hand over the import authorization and original gift documents to the giftee.The giftee after obtaining the import authorization will file bill of entry through customs authorized clearing agent for clearance of vehicle and the vehicle will be released on payment of duty and other taxes assessed by the Customs in terms of CGO 4/93 dated 07-07-1993.
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