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Policy to Import Used/Old Cars Under Various Schemes Unveiled

The ministry of commerce has unveiled the policy to import new and old/used cars under Import Policy Order, 2020.

The ministry issued SRO 902(I)/2020 dated September 25, 2020 to notify the Import Policy Order, 2020 and explain the policy to import motor vehicles under various schemes.

The Import Policy Order 2020 laid down the procedure for import of vehicles under the personal baggage, transfer of residence and gift scheme.

Eligibility. – (1) Subject to the conditions stipulated hereunder Pakistan Nationals are eligible to import or gift a vehicle:

Provided that students receiving remittance from Pakistan, non-earning members of families of the Pakistan national and those who have imported, gifted or received a vehicle during the last two years are not eligible

  • Vehicles may be imported as personal baggage or on Transfer of Residence or as gift.

Conditions of Import:

(1) Vehicles more than five years old shall not be allowed to be imported under gift, personal baggage and transfer of residence schemes, but this condition shall not apply to secondhand or used bullet proof vehicles, if imported under these schemes:

(2) Cars older than three years shall not be allowed to be imported under gift, personal baggage and transfer of residence schemes.

Explanation.- The age of the vehicle shall be determined from the 1st January of the year subsequent to the year of manufacture till the date of shipment as per bill of Lading.

(3) Minimum stay abroad for import as personal baggage shall be 180 days within the last seven months preceding the date of application.

(4) Minimum stay abroad requirement for gifting a vehicle or importing under transfer of residence shall be at least 700 days during the past three years.

(5) A vehicle may be gifted only to a family member normally resident in Pakistan.

(6) All vehicles in new/used condition to be imported under transfer of residence, personal baggage or under gift scheme, the duty and taxes shall 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, as under,

a) The remittance for payment of duties and taxes shall originate from the account of Pakistani national sending the vehicle from abroad; and

b) The remittance shall either be received in the account of the Pakistani national sending the vehicle from abroad or, in case, his account is non-existent or inoperative, in the account of his Family:

Provided that in case the Pak Rupee depreciates or government increases the import duties or taxes after receipt of remittance and before filing of the goods declaration, which results in shortfall of remitted amount against payable duties and taxes, the importer shall be allowed to meet the shortfall through local sources.

(7) A motorcycle or scooter shall be allowed to be imported upon transfer of residence, provided that there shall be no entitlement to import a vehicle and the same conditions shall apply mutatis mutandis, as are applicable to import of a vehicle.

(8) Agricultural tractors, bulldozers, laser land levelers and combined harvesters will also be allowed under gift, baggage and transfer of residence schemes subject to the same conditions as applicable for import of vehicles. However, import thereof under gift scheme will be allowed once every year.

(9) Vehicle imported by an overseas Pakistani under transfer of residence scheme shall be released to the legal heir(s) in case of his/her death.

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