Policy revision amendments notified

KARACHI: The Ministry of Commerce has notified amendments in the Import Policy Order (IPO) to provide legal cover to the Economic Coordination Committee (ECC) decision that duty and taxes are to be made in foreign exchange on imported cars.

SRO No 52(I)/2019 read that the duty and taxes on all vehicles in new/used condition to be imported under transfer of residence, personal baggage or under gift scheme, should 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.

“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 the Pakistani national sending the vehicle from abroad or, in case, his account is nonexistent or inoperative, in the account of his family,” the SRO added.

A car importer said hundreds of imported vehicles were parked at the ports awaiting clearance, and these would be stranded either for re-export, or would ultimately perish causing losses to the importers.

An official said the transfer of residence and gift scheme was largely misused and only a fraction of the vehicles were actually imported by overseas Pakistanis. The commercial importers had developed contacts with the overseas Pakistanis and used their passports for importing vehicles and sold the same in the market.