ISLAMABAD: In an apparent effort to promote foreign tourist mobility, the government has allowed foreign visitors to temporarily import duty-free vehicles for three months.

At the same time, the government has also decided that the adjudicating authority would confiscate goods carried in commercial quantities under the Baggage Rules 2006. The Federal Board of Revenue (FBR) has issued two different notifications, SROs 1649 and 1650 of 2024, to notify the proposed changes in the customs rules.

As per proposed amendments, a tourist will be given a delivery of a vehicle if they import it with a carnet-de-passage or a bank guarantee. The officer-in-charge of the customs station will make the delivery of entry without payment of duties for its retention in Pakistan for a period of three months.

However, the tourist will submit a declaration at the customs station or port of entry stating that he will not constructively or materially transfer ownership of the car to anybody else during his stay in Pakistan.

Baggage rules amended to confiscate goods in bulk

The facility appears to benefit Middle Eastern royal families and other elites who can afford to import their high-end hunting vehicles. However, the facility will also benefit those who visit Pakistan by road.

It was also clarified that the customs collector might extend the vehicle’s stay for an additional three months if visitors cannot export the vehicle by the deadline. However, this extension will be subject to having valid carnet-de-passage or bank guarantee and undertaking by the carnet holder that he will not leave the country during the extended period.

To make things easier for tourists, it was determined that recognised foreign tour agencies would be permitted to re-enter the same vehicle after it had exited within one year for a period of up to three months at a time. However, in the case of the same tourist (non-Pakistani) or in the name of someone else (non-Pakistani), a temporary release of the same vehicle after exit is permitted for 14 days in exchange for a camet-de-passage or bank guarantee.

It was also determined that FBR would have the authority to extend the vehicle’s use time for up to six months in certain instances after meeting the criterion. If the carnet holder fails to get a legal extension, the vehicle must be surrendered to the appropriate collector.

It was also agreed that if the importer chooses to keep the car beyond the period for which authorisation has been granted, he must acquire an import permit from the Ministry of Commerce and pay the customs charges and taxes levied on the day of importation.

Furthermore, if a tourist imports a vehicle for passage through Pakistan to a foreign destination, the officer in charge of the customs-station of entry may, in the absence of a carnet-de-passage or a bank guarantee, allow the vehicle to pass through Pakistan without payment of customs duties under escort from the Customs-station of entry to the Customs-station of exit on payment of escort charges determined by the relevant collector.

The particulars of the vehicle permitted to transit through Pakistan will be endorsed on the tourist importer’s passport.

Baggage rules

Through another notification, SRO1649 of 2024, the FBR introduced amendments to the Baggage Rules 2006 to discourage the commercial use of this facility, which was originally available only for overseas Pakistanis.

Earlier, the goods brought in commercial quantity were allowed to be released on payment of duty and taxes at the statutory rates and the redemption fine equal to 30 per cent of the value of goods. It was decided that the customs adjudication authorities would outrightly confiscate such commercial goods.

Published in Dawn, October 27th, 2024