There are news circulating on social media and media outlets that Federal Board of Revenue (FBR) has issued notification to propose amendments in Customs Rules 2001. The reports have claimed that under the new regulation tourists in Pakistan can import vehicles without any duties and taxes for six months if they make a declaration not to transfer the vehicles’ ownership to any other person during their stay in Pakistan.
These media outlets also said the new regulation will allow tourists to import vehicles for passage through Pakistan to a foreign destination. The particulars of the imported vehicles shall be endorsed on the passport of the tourist importer.
What is The Truth?
We are here to tell you the truth about this new “policy”. First, there is no such policy because there is no notification available. The truth is that this is not a new-found regulation, such policy is already in place. And that policy is CARNET, also known as CARNET DE PASSAGES. This is an international body, which issues a document to tourists to travel on their vehicle to other countries through road.
Under this document, a tourist can take his/her car to a specific country for specific time. In case of Pakistan, the time is six months.
Wrong Use of CARNET in Pakistan
Like a lot of policies and laws, CARNET DE PASSAGES has also been wrongly used in Pakistan. Under the policy, a lot of people brought cars from United Arab Emirates (UAE) to the country. After six months, either they took the car on a ship and brought it back after a round of sea or simply kept it in their houses/warehouses and other places. There are still hundreds of cars in the metropolitan city.
After such incidents, the government took strict action and made it harder to bring a car under this ‘tourist policy’.
How it Seems Unfeasible?
Whenever a policy is introduced, it is always in detail and explains all duties and taxes. Meanwhile, in this “new policy”, there is no detail about Customs Duty, Regulatory Duty (RD), Additional Customs Duty (ACD), or Sales Tax. The government can’t just simply give relaxation in Bill of Lading (BL) for shipping of the car.
There is always explanation on whole tax net and how it would work on specific product.
Henceforth, all we want to say is, there is nothing new in this “new tourist policy”. It’s already in the papers. There is no Free Lunch, and there is No Free Car.
End Note: There’s another interesting news roaming around that Bugati Chiron will be coming in Pakistan under the “new tourist policy”. But nothing is confirmed yet. In case there is, we’ll keep our readers posted.
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