KARACHI: The Ministry of Commerce has agreed to clear used imported cars on the old duty and tax procedure, said All Pakistan Motor Dealers Association (APMDA) Chairman H.M. Shahzad.

Around 6,000-7,000 vehicles had been awaiting clearance from the port due to a change in procedure of duty and tax on import of cars under various schemes.

Mr Shahzad said Comme­rce Secretary Younus Dagha had assured him via phone call on Saturday that used vehicles with bill of lading issued until Dec 31, 2017 shipment would be cleared on the old procedure for duty and tax payment in Pakistani rupees.

The ministry on Jan 9 had notified procedure for payment of duty and tax on import of cars under various schemes. According to the procedure, for vehicles imported under personal baggage, transfer of residence or gift scheme, the remittance for payment of duties and taxes should originate from the account of a Pakistani national sending the vehicle from abroad.

The remittance should 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 then in the account of his family member, as defined in the Import Policy Order.

He said the APMDA would meet Commerce Secretary next week to discuss future strategy regarding the new procedure.

Due to the new mechanism, importers had suspended clearance of some 6,000-7,000 vehicles from the port, while 3,000 more vehicles booked earlier were due to arrive.

By clearing these vehicles the government would fetch Rs10-12 billion in terms of customs duty, he claimed.

Published in Dawn, January 21st, 2018