ECC to restate the regulations applied on used imported cars

ecc used imported cars ft

People in the country not only buy used cars made locally to avoid the awkwardness of delivery time and premium but also import cars under; used car import schemes namely baggage, gift and transfer of residence schemes. However, the government of Pakistan issued SRO 1067(1) and made it difficult to import cars.

The government at the time of issuing the SRO asserted that the step is being taken to curb the trade deficit of the country; moreover, these schemes were introduced to cater the needs of overseas Pakistanis not to be used for commercial purposes.

A total of 76,635 units were shipped in 2017. And it was also reported that due to excessive import local automobile industry saw a revenue loss of PKR 23bn last year.

After much fuss and government’s reluctance to provide any kind of a relief to importers they protested and declared that they will not be taking their cars until government withdraw its policy. Around 7,000 cars have been stranded at the port. And due to this situation, the premium on cars have also reached an all-time high. However, we reported that government might clear the cars stuck at port in previous customs duty to give relief to consumers and importers. And now the current update on all this situation is mentioned below.

According to the official sources, the Economic Coordination Committee (ECC) of the Cabinet, scheduled to meet on Wednesday 7th of February, has decided the fate of thousands of used imported cars stuck at ports.

Last year, on October 6, Economic Coordination Committee (ECC) of the Cabinet had approved that the duty and taxes of all vehicles that are imported under transfer of residence, personal baggage or under gift scheme will come from abroad; either arranged by Pakistani nationals or local recipient showing conversion of foreign remittance to local currency through bank encashment certificate.

As per the newly issued SRO 1067(1) 2017, many consignments that were shipped got stuck at the ports and Finance, Revenue and Economic Affairs Adviser, Dr. Miftah Ismail suggested on releasing the shipments, so the people who have imported before the SRO issuance wouldn’t have to face difficulties. Moreover, he also suggested making it effective for vehicles arriving after February 28, 2018, where the importers will have to pay their duties at the higher exchange rate.

And now it is confirmed that the Commerce Ministry has proposed to the ECC to clear those vehicles where the bill of landing was issued on or before the 9th of January 2018.

That’s it from our side, drop your expressions in the comments section below.


Notable Replies

  1. capsat says:

    every thing is gossip till such time an ammendment is issued for the active SRO,

    all landed cars with B/L dated 01 Dec 2017 will be released, with a penalty of 15% in addition to the applicable taxes. This has been decided in principal, but the criminals and car importer mafia is divided among themselves some of them ( from Punjab ) are not accepting the penalty percentage they want it reduced to single digit which is unacceptable to GOVT.

    Nobody can resist or blackmail a sitting govt, - we all know MAFIAs never goto court, else the court is best choice of the so called IMPORTERs association. They well know court may seize all such cars shipped under fake documents through money laundering and open auction will take place.

  2. capsat says:

    remember GOVT have enough Torque to neutralize such mafias very well. This importer mafia can never dream of going to court for solution to such nonsense.

    and Govt is waiting for the moment of that dream, - Once they goto court imagine ............

    court ordering every Consignee to produce evidence of money transfer in a bank account to allow smooth clearance without penalty waiving off the demurrage, & The passport holder to provide proof of income & bank documentation to buy a car from auction house ............... how many out of 6000 can do so, ...................................................

    END OF STORY.

  3. capsat says:

    Then the story will remain ... to be continued, as care taker can not make any policy decisions,

    and the elected cabinet will be sworn in on or before Aug 01 2018

    who ever is the Focal & Chairperson of that Car Importers Mafia will be stoned / lynched by his own flock for misguiding and choose NOT TO CLEAR Vehicles since landing, ....

    I may be among those to bid in auctions by customs for the 6000 abandoned scrap at port since Nov 2017.

  4. Govt literally need to murder industries running on imported maaterials which is required and is basic of any production unit..

    currently w.o producing locally the required alloy grades ... ton of duty R.D ..add duty is applied on these.. so forget anything called low cost local production..can't do anything abt it
    for that 1st thing 1st...you regulate import and work on local production of such and give immunity to importers meanwhile while working on local...
    currently govt is total blind on this aspect and had no concern to bring down cost but to flourish and bring manufacturers only

    govt is sitting duck and blind on low cost stuff

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