Commerce Division is to get approval of Economic Co-ordination Committee (ECC) of the cabinet for release of the used cars stuck in transit, as per previous mechanism due to mounting pressure from Prime Minister''s Adviser on Finance and Economic Affairs Dr Miftah Ismail on them to support used cars'' importers, well-informed sources told Business Recorder.
Commerce Ministry''s SRO 1087 (1) 2017 stipulates that all duties and taxes on imported vehicles in new or used conditions either under personal baggage or gift scheme would be paid out of foreign exchange arranged by Pakistani nationals themselves.
According to Miftah Ismail, while new requirements are appropriate and in the best interest of the country, it appears that its immediate implementation has created some problems for those importers who had already shipped their vehicles.
He further maintains that the new requirement be given effect for vehicles arriving after February 28, 2018. This will allow the pre-shipped vehicles to be cleared under the old regime.
Miftah has proposed that during the period up to February 2018, the importers could be required to pay duties at the higher of the inter-bank and open market foreign exchange rates. On Sunday, Commerce Division clarified for the information of general public and stakeholders including overseas Pakistanis about the recent decisions taken for streamlining the process of facilitating import of used vehicles in the country.
Overseas Pakistanis have the facility of importing used cars under Baggage, Gift and Transfer of Residence schemes. The use of this provision in the Import Policy was never intended for commercial imports.
In order to remove chances of any continued misuse of the scheme, without reducing its availability to the genuine beneficiaries, the overseas Pakistanis, a provision was added in the Import Policy to allow for the payment of Duties and Taxes on such import in foreign exchange by the importer (overseas Pakistani) from his own bank account. This is to make sure that no one else imports in the name of that beneficiary.
Due consideration is, however, being given to the fact that there was an inventory of vehicles in transit while this decision was being taken or under implementation. In order to avoid undue hardship, a facilitating provision is being finalized for the vehicles in transit only as a one-time dispensation.
The Commerce Division has noted with concern that there are statements being issued by some office bearers of an association which might convey the impression as if this new provision of policy is being done away for all future imports and it clarified that the commercial importers were neither the intended beneficiaries nor the rightful stakeholders in the matter of import of used vehicles under the baggage, gift and transfer of residence schemes.
It further stated that it was for the benefit of overseas Pakistanis and the provision of payment of duties and taxes from their accounts had become part of the import policy after due deliberations at the Economic Coordination Committee of the Cabinet.
"Anyone making any further imports in the hope of any expected change in this policy will do so at his own risk and the Customs authorities will be advised to confiscate such vehicles or take any other legal action meant to deal with illegal imports. Commerce Division does not intend to make any changes in this provision of policy except for the vehicles stuck up in the transit," says an official statement.
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