Rules for used cars import relaxed

The government has decided to allow import of all those five years old vehicles which were laden on shipping vessels on or before June 30, 2006 (12 midnight) under the transfer of residence (TR) scheme. Sources told Business Recorder on Saturday.
The Central Board of Revenue (CBR) would soon issue instructions to all customs collectors to allow clearance of all those five years old vehicles, where shipping vessels have left their respective country up to June 30 midnight. In this regard, the department would see relevant shipping documents, including invoice and bill of lading showing pre-shipment of freight.
The board is drafting a directive for regional collectors to remove hardships in genuine cases where vehicles were shipped prior to the applicability of new amendment from July 1, 2006. In this connection, the board has consulted stakeholders.
Through an SRO.696(I)2006, the government had amended the Import Policy Order, 2005, under which 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 vehicles arriving on or after July 1, 2006.
In the meantime, the CBR had categorically announced the board would charge 30 percent redemption fine in addition to duties and taxes on the import of more than five years old vehicles under the TR scheme arriving on or after July 1, 2006.
Meanwhile, the board received letters about relaxation of five years old condition in cases where vehicles were already laden on ships before the announcement of the amendment as applicable on July 1, 2006.
Once the directive is being dispatched to regional collectors, the restriction of five years on cars import by overseas Pakistanis under the TR scheme would not be applicable in the above-mentioned cases.
When asked whether the board has proposed any new amendment in the baggage rules in the Trade Policy, sources said no new amendment has been proposed and recently issued ''baggage rules'' would remain intact.
Responding to another question, sources said submission of the "earning certificate" duly signed by the Pakistan Mission Aboard" by the importer of vehicle under the TR scheme would remain enforced. No new provision has been added in the relevant rules for demanding any additional ''source of income'' from overseas Pakistanis. ''Earning certificate'' specify the foreign exchange earning/savings by Pakistani nationals for import of vehicle under the TR scheme. The diplomatic mission of Pakistan also certifies the total legitimate income and net-saving after deduction of tax of concerned overseas Pakistani.