On October 2017, the Government of Pakistan released a new policy which created confusion and chaos in the local automotive market. The SROs, namely SRO 1035(1)/2017 and SRO 1067(1)/2017, prompted the local importers to avoid clearing the vehicles, keeping them stuck at the ports.
As such, people who want to import Japanese used car in Pakistan have been worried if they should continue to push their plans. Thankfully, after careful review, a committee in the Pakistan Parliament has decided to reinstate a previous car policy.
Pakistani Government Reviews Policy on Importing Cars
Last February, the Senate Standing Committee on Finance and Revenue in Pakistan summoned the Ministry of Commerce, Ministry of Finance, and the Federal Board of Revenue. They were asked to provide their thoughts on the new car importation policies.
According to Committee chairman Senator Saleem Mandviwalla, the policy on importing cars was unclear and it resulted in an increase in the prices of locally manufactured vehicles. What’s more, over 9,000 imported vehicles remain stuck at various ports. As such, automotive businesses and local consumers have suffered the consequences of this unclear policy.
Revisions on the Policies Created Confusion
Mandviwalla added that the Ministry of Commerce and Federal Board of Revenue has failed to provide a solid stance on the car importation policies. As such, uncertainty has grown in the market, especially among the consumers.
Since October 2017, the government has revised the policy on importing cars twice. For instance, there was a new mechanism involving vehicles imported under transfer of residence, personal baggage, or gift scheme. The remittance of payment for duties and taxes should come from abroad with a Pakistani national or local recipient showing a bank encashment certificate, detailing the conversion from foreign to local currency. To put it another way, the payment of imported car duty should come from abroad, and the money trail should be provided.
The automotive industry has said that the policy would gravely affect car traders, as well as the economy of Pakistan. Moreover, importers were forced to keep the vehicles at ports to avoid incurring legal mistakes or financial losses.
Update on Car Importation Policy
The great news is that the Economic Coordination Committee decided to reinstate the mechanism that was used before October 2017. This means that if you’re from Pakistan and you’re planning to buy from a Japanese car auction, the regulation and policy for releasing your used vehicle will be the same as before.
Whether you’re importing a new or used car to Japan, it will be processed under the old policy. You wouldn’t have to arrange the duty of the cars from abroad. To put it another way, you wouldn’t have to go through the hurdles on importing vehicles that Pakistanis have been suffering from in the last four months.
After the change in the import policy last October, the premium on cars was increased. Today, you can expect the prices to be lowered. If you imported a car before the confusion on the policies, you can now claim your vehicle. Cars that were held at the Karachi port will now be cleared for release. On the other hand, it is worth noting that new 4×4 vehicles and those with engine capacity of 1800cc or higher, will still be processed under SRO 1067.
For more information on what you need for importing Japanese used cars, check out our Pakistan importation procedures page.
Alternatively, you can contact Carused.jp today and our friendly and knowledgeable sales specialists will be glad to answer your questions!