New imported cars/vehicles: MoC takes step to help avert detention by Customs at ports

ISLAMABAD: The Commerce Ministry has issued notification by amending Import Policy Order (IPO), 2022, to declare that new imported cars/vehicles will be those that had driven up to 2,000 kilometers instead of 500 kilometers aimed at avoiding detention by Customs at the ports.

On February 14, 2024, Commerce Ministry informed the Economic Coordination Committee (ECC) of the Cabinet of caretaker government that it has been approached from time-to-time by multiple importers requesting one-time condonation of extra mileage of new vehicle.

The Ministry argued that the issue of extra mileage comes to the fore when the consignments of vehicles are held up for having exceeded the permissible limit of 500 kilometers as stipulated in para 2 (h) of the Import Policy Order, 2022.

In terms of para 2(h) of the Import Policy Order (IPO), 2022, a “New Vehicle” means vehicle manufactured during 12 months preceding the date of importation and neither registered nor used more than 500 kilometers prior to importation.

The Cabinet Committee for Relaxation of Import/Export-related Prohibitions, constituted vide notification No 1(13)/2018- AC (TP) on October 11, 2022, considered such cases of “One-Time Condonation of Extra Mileage” in its meetings held from time to time and decided to allow one-time release of these vehicles in relaxation of provision of paragraph-2 (h) of IPO, 2022, by exercising powers given in Paragraph 20 of the IPO, 2022.

The violation of paragraph- 2(b) of IPO 2022 by the importers was on account of road travel of these vehicles for a distance exceeding 500 kilometers from factory premises/warehouses to ports. Considering the unique circumstances faced by the importers, wherein, these vehicles often exceed the existing requirement of 500 kilometers as mentioned in para 2 (h) of IPO 2022, para 2 (h) of Import Policy Order, 2022 may be amended to state that the vehicles driven up to 2,000 kilometers shall be considered as new, as it would help in avoiding the vehicles being detained by Customs authorities on a regular basis.

The Ministry of Commerce had proposed that the para 2 (h) of the Import 2022 may be amended to state that the vehicles driven up to 2,000 kilometers shall be considered as “new vehicle”.

Commerce Ministry’s SRO 430(1) 2024 stipulates that in exercise of powers conferred by sub-section (1) of section 3 of the Import and Exports (Control) Act. 1950(XXXIX of 1950), the federal government has directed that the following further amendment shall be made in the Import Policy Order, 2022 namely “in the aforesaid Order, in paragraph 2, in clause (h) for the figures “500”, the figure “2000”, shall be substituted.

Copyright Business Recorder, 2024