KARACHI, Sept 17: Customs Department officials have threatened to seize imported refurbished cars and auction them if the importers/dealers do not clear the vehicles in the next few days, alleges APMDA.

Talking to Dawn, All Pakistan Motor Dealers Association (APMDA) Chairman H.M. Shahzad said that the association has not received any written order from the Customs Department. “However, some officials in the Customs Group 6, who deal clearance of cars, have ‘warned’ the dealers on the instruction of FBR higher ups,” he claimed.

“The Federal Board of Revenue (FBR) chairman in a meeting last week assured us of resolving the issue of Customs General Order (CGO) of August 31, 2012 as it would make the used cars expensive due to change in depreciation allowance per month,” he said.

However, some Customs officials were trying to harass the used car dealers and the Association would bring this into the notice of the higher ups of FBR, he maintained.

Shahzad said that used car dealers had almost suspended clearance of vehicles from August 31, 2012 hoping that the FBR chief would resolve the issue but so far nothing has been done.

Out of 4,000 units, dealers had cleared only 200-300 small cars and around 3,700 vehicles are awaiting clearance from the port.

He said around 2,000 vehicles are of higher engine capacity out of 3,700 vehicles on which cumulative customs duty collections comes to Rs12 billion.

“Two vessels are in the high seas carrying 3,000 vehicles and one ship is arriving in the next few days while another is coming in the third week of this month. The government would get Rs10 billion in shape of customs duty in case of clearance of 3,000 vehicles,” he said.

He said that consumers are now relying on used cars since Suzuki Mehran now enjoys a monopoly in small engine capacity vehicles after suspension in production of Suzuki Alto and Daihatsu Cuore in Pakistan.

He urged the FBR chief to resolve the CGO issue otherwise the dealers will move to the court.

“We are not against the local industry as the market is now open for consumers to select either used or imported vehicles,” he said.