SRO-52(1)/2019 flops: used car importers buy second-hand vehicles through auction

The used car importers have reportedly adopted new modus operandi to circumvent the requirements of SRO-52(1)/2019 and began importing second-hand vehicles in Pakistan through auction, it is learnt. The import of used vehicles had seen almost complete halt since the issuance of SRO 52(I)/2019 in January 2019, now has gained momentum again under the patronage of all major stakeholders, including shipping agents and Pakistan customs, sources said, here Tuesday.
In past, the used car importers were misusing passports of overseas Pakistanis, especially labour-class, working in Middle East to avail the transfer of residence, personal baggage or gift scheme for the import of second-hand vehicles. However, the import of used vehicles has almost come to a full-stop after the enforcement of SRO-52(1)/2019. That SRO restricts overseas Pakistanis to originate custom duty in dollars from personal account from the country of residence and remit to their own bank account or in case of remitting it to any blood relative account, NADRA verification is compulsory.
Keeping the said restriction in view, the used car importers have now adopted new modus operandi and sending vehicles to Pakistan with the names of unknown (Benami) consignees in order to avoid the compliance the requirements of SRO-52(1)/2019. This activity is being done in connivance with shipping agents and customs department, sources alleged.
They said although the Ministry of Maritime Affairs has restricted shipping agents not to bring vehicles, which are not in compliance with the SRO 52(1)/2019 to Pakistan, they are reportedly violating the directives and bringing used cars under the names of unknown (Benami) consignees.
As these used imported vehicles are being shipped under unknown (Benami) consignees hence no Goods Declaration (GD) is being filed for its clearance. Therefore, these vehicles, after 15 days of its arrival, are being auctioned under the directives of the ministry of finance.
Replying to a question, sources alleged that used cars importers with the support of concerned customs officials are involved in arranging auctions. The government efforts to strengthen foreign reserves through SRO 52(I)/2019 failed due to said modus operandi.
Furthermore, sources said these used cars importers, who paid US$ 1 billion annually on account of duty and taxes, were now clearing imported vehicles through arranged auction. Instead of taking action against the shipping agents and the importers to plug revenue leakage, the customs department was acting as facilitator and organising another auction on May 22, 2019 (today) of over 100 vehicles under what the sources said 'arranged system'.
Meanwhile, a representative of used cars importers dispelled the impression of arranging auction for importing used vehicles in Pakistan. He said that customs department followed all required procedures to ensure transparency in the auction and importers had no role in it. When contacted, customs officials and representatives from shipping agents were not available for comments.