Pakistan has more liberal import policy for the used cars in the region as compared with India and Thailand that impose high tariff plus non-tariff barriers, resulting in insignificant imports in comparison with Pakistan where used cars import is high, a study conducted by The News daily and published here Saturday reveals. The study of the import regime for the used cars revealed that the used cars up to three years old can be imported in Pakistan as personal baggage for Pakistanis with six months stay abroad. Moreover, the overseas Pakistanis with a stay abroad of 700 days could sent a used car as a gift or if they are returning back to Pakistan they can import it under transfer of residence head, it said.
The duty on the new cars in Pakistan ranges in between 50-60 per cent plus 17 per cent general sales tax (GST) and one per cent excise duty for 800cc to 1500cc cars. Thus, 48 per cent reduction in duty is a significant incentive to import used cars, according to the study.
It also said that in India basic customs duty on the new cars is 61.8 per cent plus 12.5 per cent Value-added Tax (VAT) and 16.5 per cent excise duty. In Thailand, the customs duty on the new cars is 80 per cent plus additional duty ranging from 30-50 per cent plus 17 per cent other taxes.
The study also revealed that there is a duty concession of one per cent per month up to a maximum of 50 per cent for used cars in Pakistan for three years old models. There are no other restrictions. Even the environmental standards are not checked for the used cars.
In comparison, Indian import laws also allow import of used cars up to three years old. However, there is a restriction that the imported used car would have to be registered in the name of the importer for at least one year, it said. There is no gift scheme there. It is mandatory that the used imported vehicle is right-hand drive with speedometer in kilometres per hour, it said.
The import duty on two years old vehicle is 108 per cent. According to the study, a used cars importer in India has to submit a pre-shipment certificate that the imported vehicle confirms the Indian Motor Vehicle Act standards.
The importer has to confirm the original homologation certificate issued at the time of its registration. It is also mandatory for the Indian importer to obtain approval from the Indian Testing Agency about the fitness of the vehicle.
In Thailand, foreigners living in the country for at least one year have been allowed to import used cars. The car is registered in the name of the importer for at least one year, according to the study. It is mandatory for the Thai residents living abroad and desires to bring a vehicle home to have the vehicle registered in their name for at least one-and-a-half-year and the owner should have a driving licence of the country where the car was registered.
The study also revealed that the import duty on the used cars in Thailand ranges from 167 per cent to 197 per cent. Used cars are restricted goods and can only be imported after obtaining prior permission from the Thai Ministry of Commerce. These vehicles have to pass an exhaust emission test of the environment protection office before plying on the road