November 16, 2001	Friday	Shaba'an 29, 1422

PESHAWAR, Nov 15: The Central Board of Revenue (CBR) has been proposed to relax the rules governing the import of used cars under specific conditions, official sources told Dawn here on Wednesday.

The proposal moved recently by the Peshawar customs collectorate seeking easing off of the condition No. 3 (4) of the rules regulating the import of used cars under the transfer of residence (ToR) scheme of CBR.

Presently, an overseas Pakistani is allowed to import a used car upon his permanent resettlement in Pakistan after staying abroad for a period of two years.

The vehicle required to be imported so (by any overseas Pakistani/applicant) is supposed to be registered in his/her name in the country of his/her stay for a period not less than two years.

According to sources, the condition, effected somewhere in 1994-95, reduced the scope of importing vehicles under the transfer of residence scheme as overseas Pakistanis having stayed abroad for a period less than two years cannot bring their used car.

Before the introduction of the said condition by the CBR, every overseas Pakistani having stayed abroad for a period of six months was entitled to import a used car ‘under the personal baggage scheme’.

Import of used cars under the transfer of residence, said the sources, had been introduced to help, some how or the other, the local car manufacturing sector to stand on its feet.

“However, the decision back fired,” said the official sources as, they added, not only the revenue, which was used to be raised through the ‘personal baggage scheme’ was lost, all the more, restrictions partially encouraged smuggling of reconditioned/used cars.

That was the starting point for the smugglers mafia to introduce the illegal business of smuggled vehicles in the country especially in areas bordering with Afghanistan, believed several of the officials.

“This played as one of the major factors for encouraging smuggling of vehicles via Afghanistan,” said a senior officer.

The CBR, according to the customs department sources, has been suggested that the above mentioned condition be relaxed allowing the import of vehicles under the transfer of residence scheme even to overseas Pakistanis getting resettled permanently in Pakistan after staying abroad for a period less than two years.

“Or a fine of $500 [per person] be imposed on those who don’t comply with the condition that asks for importing vehicle having been used/owned by him/her for two years,” said the sources.

The sources said that the customs authorities had contemplated, in their suggestion to the CBR, that easing off of the condition would help improve the revenue not only by means of getting the import of vehicles started rather the levy of fine would also help generate revenue.

The CBR, said the sources, had been pressed hard for considering the proposal because the Peshawar customs collectorate’s revenue through the personal baggage scheme had been at the zero level for the last couple of years.

“The collectorate was used to raise over Rs100m annually under the personal baggage scheme,” said the official sources. Under the recommendation, said the sources, the CBR bosses had been requested to move the commerce ministry for effecting changes under the relevant laws.

Vehicles imported under the transfer of residence scheme are to pay 50 per cent customs duty against the 33 per cent duty which the owners of non-duty paid vehicles paid to get their smuggled vehicles regularized under the amnesty scheme(s) introduced by the CBR from time to time during the last couple of years.