ISLAMABAD, Aug 5: The Central Board of Revenue (CBR) on Saturday issued new rules for regulating the import of used cars by overseas Pakistanis apparently to discourage the import of vehicles to provide protection to the local manufacturers.
The new rules named “Import of Vehicles Rules 2006” issued through a customs notification here involved cumbersome procedures besides two lengthy certificates — earning and gift undertaking — conditional for availing the facility.
This was the second attempt of the government to restrict the import of cars for overseas Pakistani by involving a huge documentation process. Earlier, in the budget the import of used cars under the transfer of residence case was restricted to only five years.
It is believed that with these kinds of inherent measures on the part of the government, the premium which has shown some declining trend before the budget last had started going up. Now, it is obvious that it would go further due to these rules.
Under the new rules, the gift scheme was restricted to blood relatives - parents, sister, brother, husband, wife and children whether married or not, but excluding children under 18 years of age. Pakistani mission abroad would issue the earning certificates and gift undertakings following fulfilment of all requirements. Only in two years of time one car could be imported or gifted.
According to conditions notified for the import of vehicles by overseas Pakistanis, vehicles more than five years old shall not be allowed to be imported under gift, personal baggage and transfer of residence scheme. This condition shall apply to the vehicles arriving on or after the July 1, 2006. Minimum stay abroad for import as personal baggage shall be 180 days within the last seven months preceding the date of application; minimum stay abroad requirement for gifting a vehicle or importing under transfer of residence shall be at least 700 days during the past three years and a vehicle may be gifted only to a family member normally resident in Pakistan.
In case of cars with engine capacity of 1800cc and above, and 4x4 vehicle in new condition to be imported either under personal baggage or under gift scheme, the duty and taxes will be paid out of foreign exchange arranged by Pakistan nationals themselves or local recipient supported by bank encashment certificate showing conversion of foreign remittance to local currency.
A motorcycle or scooter shall be allowed to be imported upon transfer of residence provided that there shall be no entitlement to import a vehicle and the same conditions shall apply mutatis mutandis, as are applicable to import of a vehicle.
Agricultural tractors, bulldozers, laser land levellers and combined harvesters will also be allowed under gift, baggage and transfer of residence schemes subject to the same conditions as applicable for import of vehicles. However, import thereof under gift scheme will be allowed once every year. A non-privilege foreign national could also import cars as personal baggage. While cars imported in contravention of rules, could be allowed for re-export.
The CBR also issued procedure for import of used cars -- Personal baggage: filing of goods declaration accompanied with the following documents namely; purchase receipt; bill of lading dated not later than 120 days from the date of arrival in Pakistan of the applicant; and attested photocopy of passport or Pakistan Origin Card (original passport or Pakistan Origin Card required to be checked by customs at the time of clearance). For Gift Scheme: filing of goods declaration with the following documents namely; gift undertaking, not more than six months old; NIC of donee; purchase receipt; bill of lading (showing name and address of consignee); attested photocopy of passport or Pakistan Origin Card; and earning certificate.
Transfer of residence: filing of goods declaration accompanied with the following documents namely; purchase receipt; attested photocopy of passport or Pakistan Origin Card (original passport or Pakistan Origin Card may be required to be checked by the customs at the time of clearance); valid driving licence; bill of lading (dated not later than 120 days from the date of arrival of applicant; and earning certificate.