Step by Step: How to Import Used Vehicles

The rules and regulations governing the Import of
Used Motor Vehicles is governed by the Import Policy Order 2022 Appendix-E

    1. Step
      🟌

      In summary,
      used vehicles can only be imported into Pakistan – once in two years (700 days) - by
      non-resident Pakistanis under three schemes

      i) Personal Baggage

      ii) Transfer of Residence
      or

      iii) by way of Gift to family members
      (parents, sister, brother, husband,
      wife and children whether married or
      not, but excluding children under
      eighteen years of age;)


      All schemes requires the duties and taxes to be paid in full by the importers using
      their own personal accounts to remit the amount of applicable duties and taxes and
      provision of the PRC to the Department of customs. Students or non-earning members of
      non-residents are not eligible.

       


      Step
      1

      Import of vehicles can only be under one of the
      following schemes

      1. Personal
        Baggage:

        ► Requires a minimum
        stay of 180 days in the past 7 months preceding the date of
        application

      2. Transfer of Residence
      3. Gift scheme

        ► A vehicle can only be
        gifted to a family member i.e. Parents, Siblings or
        spouse.

          Note: (2) and (3) above requires an
        applicant to have stayed abroad for at least 700 days in the
        preceding 3 years

        ► With the exception of
        bullet proof vehicles, vehicles that are more than 5 years old are not
        allowed for import.

        ► Cars older than 3
        years are not allowed to be imported

         Note: Age of the Vehicle is
        determined as the time between 1st of January of the year
        subsequent to the year or manufacture till the date of shipment
        as per the bill of lading

        ⇒ For example the age of a Vehicle manufactured
        in 2018 and shipped to Pakistan on 30th September 2020 will be
        calculated as from 1 st January of 2019 to the 30 th September of 2020 i.e. 1 Year
        and 9 months

        ► IPO Section 2(M)
        defines a New Vehicle as one that was manufactured within 12 months
        preceding the date or import AND neither registered nor used more than
        500 Kilometers prior to import.


    1. Step
      2

      Duties & Taxes

      • The remittance for payment of
        duties and taxes shall originate from the account of Pakistani national sending
        the vehicle from abroad; and
      • The remittance shall either be
        received in the account of Pakistani national sending the vehicle from abroad
        or, in case, his account is non-existent or inoperative, in the account of his
        Family


        Note: Only in
        case the Pak Rupee depreciates or government increases the
        import duties or taxes after receipt of remittance and before
        filing of the goods declaration, which results in shortfall of
        remitted amount against payable duties and taxes, the importer
        shall be allowed to meet the shortfall through local sources.

      • The motorcycle / scooter are only
        importable under transfer of residence
        scheme in two years, however, the
        following items are allowed for import
        once a year only under gift scheme,

        ⇒
        Agricultural Tractors

        ⇒
        Bulldozers

        ⇒
        Laser land levelers

        ⇒
        Combined harvesters

      Required Documents

      • Personal baggage

        ► Purchase
        Receipt

        ► Bill of Lading (no
        later than 120 days after the applicant has arrived in
        Pakistan)

        ► Attested copy of
        passport OR Pakistan Origin Card (NICOP) to be checked by Customs at
        the time of clearence

         


      • Gift Scheme

        ► NIC of the person
        recieving the Vehicle as a gift

        ► Purchase
        Receipt

        ► Bill of loading
        showing clearly the Name and address of the
        consignee

        ► Attested copy
        of passport OR Pakistan Origin Card (NICOP)

         

      • Transfer of Residence

        ► Purchase
        Receipt

        ► Attested copy of
        passport OR Pakistan Origin Card (NICOP) to be checked by Customs at
        the time of clearence

         

      Goods Declaration

      • "While it is totally permissible for Non-resident Pakistanis to import used vehicles under Personal Baggage,
        Transfer of Residence and Gift Schemes, it is advisable to engage an authorized customs clearing agent for all
        clearance related matters for convenience and speedier clearance. In case you wish to import yourself without using
        the service of Customs Clearing Agent, you will need to Register with PSW".


    1. Step
      3

      • The import fees will be determined upon
        various factors as described in the IPO Appendix-E

      • For Car maximum depreciation allowed
        up to 60%.


  1. Step
    4


    • Assessment is being made as per ITP
      Valuation Rulings issued from time to time and MSRP (Manufacturer
      Suggested Retail Price)
    • Where available, local authorized dealers
      are consulted in accordance with the provisions of the CGO 14/2005, for certification of FOB
      values of the imported vehicles
    • In case, there are no authorizFZed dealers
      available for the imported vehicles the following happens

      ► here car group recourses to
      MSRPs available on the manufacturer's own website in the country of
      export.

      ► Where such a website is not
      available

      ⇒ the car
      group prefers to rely on reliable and established Websites for determining and
      assessing the vehicles on the basis of MSRP as per guidelines available in last
      applicable Valuation Ruling and Office Orders issued time to time.