Pakistan Association of Automotive Parts and Accessories Manufactures (Paapam) has claimed that despite age restriction of 3 years, 5-year-old used cars are being imported through mis-declarations and manipulations of import documents.
Paapam Chairman Munir Bana in a statement on Wednesday said that on December 12, 2012, the Commerce Ministry had issued SRO 144(1)/2012 restricting age limit of imported used cars to 3 years, with effect from December 15. An examination of the import documents obtained from Custom House has shown examples of 5 year old used cars being cleared against Bill of Lading dated 13-12-12 (prior to above time bar date of 15-12-12) through manipulation, as the actual dates of these documents were 18-12-12 (which has also been confirmed by the concerned shipping line), he said. This obvious mis-declaration is tantamount to fraud, as 5 years old cars are no longer permissible to be imported after 15th December 2013.
Another example of a recent consignment of 5 year old used cars against IGM 23 of January 18, 2013, against Bill of Lading dated January 16, 2013, whereby these used cars were imported and cleared by the Customs Department, a month after cut-off date. He said that auto industry has been most adversely affected by the import of used cars and its very survival has been mortally threatened and we would therefore urge the Customs Authorities for their legitimate help and support in curbing the misuse of the facility by the used car traders.
He said that imports of used vehicle has been eroding 30 per cent of the market shares of local auto industry for the last 2 years, creating idle capacities and badly hurting the Auto Parts Manufacturing industries. Fortunately, used cars imports were curbed last December by reduction in the allowable age limit for used cars to 3 years. However, import of 5 to 15 year old used vans, SUVs, heavy commercial vehicles and trucks continue unabated and these must also be restricted to 3 years immediately. He demanded of the government to check the misuse of overseas Pakistanis' personal entitlements by the used car dealers.
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