Q
1: As an overseas Pakistani can any one
import a vehicle from abroad ? Where will I find
the relevant information ?
Ans: Yes;
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.
Q
2: What type of vehicles are importable
under Personal Baggage/Gift Scheme and TR Scheme
? Ans: 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.
Q
3: My Brother went to USA one year
ago for studies and now he is returning after completion
of study. Can he bring a car ?
Ans: 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.
Q
4: We have appointed a foreign
national in our firm on contract basis. Can he bring
a car alongwith him ?
Ans: 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.
Q
5: How can an overseas Pakistani
bring a new car on his return to Pakistan?
Ans: 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.
Q
6: I am returning from abroad after
a two month stay ? Can I bring a car or any other
vehicle as part of my baggage?
Ans: 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.
Q
7: 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 ?
Ans: Yes,
your brother is 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.
Q
8: 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 ?
Ans: 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.
i) Purchase
receipt of the vehicle.
ii) Bill
of lading (this document is issued by the shipping
company at the time of booking of the vehicle for
Pakistan).
iii) Photocopy
of passport duly attested by the Embassy / Consulate
of Pakistan abroad.
iv) 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.
Q
9: 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 ?
Ans: 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.
Q
10: 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 ?
Ans: 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.
Q
11: 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 ?
Ans: 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.
Q
12: My brother resides in foreign
country. He wants to send us two cars. Can he send
them and what will be the procedure ? Ans: 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.
Q 13: My friend has sent me a 5 year
old used car. How can I release the car ?
Ans: 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.
Q
14: Can an overseas Pakistani bring
one old and used motorcycle in lieu of car under
Personal Baggage TR Scheme ?
Ans: 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.
Q
15: My brother is residing in USA
and holds USA nationality. Can he bring a car under
Personal Baggage / Gift Scheme ? Ans; 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.
Q 16: If
I am unable to pay the duty, taxes assessed on
my car,
what will happen?
Can I
send my car back? Ans: 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.
Q
17: 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?
Ans: 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. Source:
Central Board of Revenue , Government of Pakistan
For more information contact: Member
Customs |