Ans: Yes, you can bring the vehicle alongwith your
baggage provided the vehicle is registered in your name for atleast two years abroad and
your have a valid driving licence and you have not remained in Pakistan for more than 30
days during the last six months from the date of your final departure for Pakistan. The
vehicles registration documents must be signed and stamped from the Embassy /
Consulate of Pakistan in the country of normal residence abroad. Depreciation at the rate
of 4% for first three months, and 2% per month for the subsequent month with a maximum of
50% depreciation, in the value of the vehicle as certified by the manufacturers is allowed
in terms of para 2(b) of CGO 4/93. No further allowances or abatements are admissible.
Q 10: I am
residing in UAE for the last one year but frequently visited Pakistan and my stay abroad
is less than 180 days, can I bring a car under Personal Baggage ?
Ans: No, you are not entitled. In this situation, if
Ministry of Commerce, Islamabad permits short stay condonation you can import a new or
upto two year old car, provided the old and used vehicle is registered in your name for
atleast 60 days prior to your departure for Pakistan.
Q 11: I am
residing in Japan for the last seven months and intend to import a used car of 1600cc or
1800cc under Baggage Scheme. What allowance are applicable to my car ?
Ans: Old and used vehicles not more than two years old
upto 1800cc imported under Personal Baggage Scheme are not entitled for any depreciation
in value as per clause 2(a) of CGO 4/93 dated 07-07-1993. However, the depreciation in
value is admissible to more than two years old vehicles of upto 1800cc if imported under
Transfer of Residence Scheme vide Appendix-G of Import Trade and Procedure Order, 2000.
Q 12: My
brother resides in foreign country. He wants to send us two cars. Can he send them and
what will be the procedure ?
Ans: Gifting of two cars is not permissible. He can gift
only one new or upto two years old car during the last two years of stay abroad to a
family member. The family member means father, mother, wife and children above 18 years
age provided he has been residing abroad for more than 23 months and not visited Pakistan
for more than 30 days during the last six months from the date of gifting the car.
For gifting a car he has to directly approach the Embassy / Consulate of Pakistan at his
place of residence abroad for obtaining "Gift certificate" and "Earning
certificate" and after obtaining both the certificates he should get attested the
photocopy of his passport. He can then gift the vehicle. After gifting the vehicle the
relevant documents i.e. gift undertaking, earning certificate, attested copy of passport,
bill off lading and invoice be forwarded to the giftee. The giftee on receipt of documents
himself or in case of ladies through their attorney should present the above mentioned
documents alongwith original NIC to the office of IP Cell in the concerned Custom House,
for clearance of vehicle.
The staff posted in IP Cell after scrutiny of the documents will issue import
authorization with approval of the Deputy Collector /Assistant Collector incharge and hand
over the import authorization and original gift documents to the giftee.The giftee after
obtaining the import authorization will file bill of entry through customs authorized
clearing agent for clearance of vehicle and the vehicle will be released on payment of
duty and other taxes assessed by the Customs in terms of CGO 4/93 dated 07-07-1993.
Q 13: My
friend has sent me a 5 year old used car. How can I release the car ?
Ans: A vehicle, more than two years old, is not
importable under gift scheme and a person residing abroad can not gift a car to anyone
except his mother, father, wife and adult children. The car can only be released on
production of specific release permission from the Ministry of Commerce otherwise the
vehicle will be liable to confiscation and disposal through auction. However, you can send
this car back to your friend after obtaining permission from Customs in terms of condition
6 of Import Trade & Procedure Order, 2000.
Q 14: Can an
overseas Pakistani bring one old and used motorcycle in lieu of car under Personal Baggage
TR Scheme ?
Ans: No; old and used motorcycle is not importable under
Personal Baggage and TR Scheme in terms of Import Trade and Procedure Order, 2000. Only
passenger motor car, bus, van and pickups including 4x4 vehicles are covered under the
definition of vehicle under the said Rules.
Q 15: My
brother is residing in USA and holds USA nationality. Can he bring a car under Personal
Baggage / Gift Scheme ?
Ans; No; he is not entitled to import a car under
Personal Baggage / Gift Scheme. However, a citizen of Pakistan residing abroad having dual
nationality can import a car under Pakistani Passport but the foreign passport is also
required for confirmation of requisite stay abroad.
Q 16: If I
am unable to pay the duty, taxes assessed on my car, what will happen? Can I send my car
Ans: The car will be liable for disposal through
auction. You can however claim the sale proceeds after deduction of all leviable duty,
taxes and other charges. (However you can send it back after obtaining NOC from Ministry
of Commerce and State Bank of Pakistan.
Q 17: How do
you work out duty, taxes on a vehicle? What will be the total duty, taxes upon, say Toyota
Corolla Car, 1998 model with 1600cc petrol engine?
Ans: The duty rate is determined from Pakistan
Customs Tariff, which is 1st Schedule of the Customs Act, 1969. The rates are fixed
through Finance Bill by the legislature. The rates are advalorem, e.g., 150% of value of
the car. Thus value of the vehicle forms the basis of determining customs duty. Value of
the vehicle is determined on the basis of guidelines provided in Customs General Order No.
04/93 dated 07-07-1993. According to the instructions, the FOB (Free on Board) value which
normally also includes agents commission is obtained from the manufacturer of the
imported vehicle. Freight (as fixed vide CGO 4/93), insurance @ 1% of FOB value and
landing cost @ 1% are added to arrive at the final assessable value. On this value, Rate
of Custom Duty (as provided in Tariff) which depends on factors like engine capacity,
engine type, seating capacity etc is applied to obtain payable Customs Duty. The Customs
duty so determined is added to the ascertained value and on this enhanced value (customs
duty paid value), Sales tax rate is applied to obtain leviable sales tax. The sales tax so
determined is added to the customs duty paid value to obtain value for levy of advanced
income tax @ 6%. The Capital Wealth Tax is collected on ascertained value inclusive of
custom duty, sales tax and income tax, on the rates as provided under circular No.4 of
1998 issued by the Central Board of Revenue. A list of duty, taxes calculated on the
basis of existing duty rates, value and exchange rates is attached as (Annex- ). You may
consult the list for reference purpose. But duty and taxes may vary as fluctuations in
exchange rates or tariff rates may enhance or lessen the duty and taxes. As per customs
tariff 2000-2001, the customs duty for a motor car of 1600cc is 150%, sales tax 15%,
income tax 6% and capital value tax is 6.25%. The duty and other taxes for Toyota Corolla
car 1600cc come to Rs.11,67,607.00 if imported under Transfer of Residence Scheme. The
statement at (Annex- ) shows the duty and other taxes for various types of vehicles for