The Central Board of Revenue (CBR) has directed the concerned departments to scrap the confiscated (old and used) auto parts before their release or public auction.
The Board has issued instructions to Collectorates of Customs, Coast Guards, Frontier Constabulary, Inspectors-General of Police and Director-General, Intelligence and Investigation, Customs and Excise, for compliance.
According to the instructions, the issue of releasing old and used auto parts on redemption fine or their sale through auction was reconsidered in the Board after it received a number of proposals for release of such parts in their original form on payment of fine.
It said that the provisions of Import Policy Order and SRO 574(I)/2005 clearly specify that second-hand auto parts cannot be released unless cut, pressed, pierced, broken, or otherwise de-shaped in a manner that the same should not be used in the vehicles.
Therefore, the release, or sale, of secondhand auto parts in their original and serviceable form on payment of redemption fine or through auction is not permissible under the law, the directive said.
The consignments of secondhand/old/used auto parts should be completely turned into scrap before release or auction to government departments or traders/bidders, the directive added.