By Aamir Shafaat Khan
KARAHCI, June 10: The import of second-hand cars, jeeps, sports utility vehicles (SUVs), etc., under various schemes saw a big jump of 225 per cent to 34,723 units during July-May 2005-06 as compared to 10,658 units in the same period last year.
Over 13,000 cars up to 1,000cc landed in Pakistan in the last 11 months under the Transfer of Residence, Gift and Personal Baggage Scheme as compared to around 525 cars in the same period last fiscal year. The import of jeeps (4x4) under various schemes touched 5,543 as compared to 552 units in July-May 2004-05. Around 3,500 vans were imported as against 375 vans in 11 months of the last fiscal year.
Some 3,390 cars (1,300 to 1,500cc) arrived in the country as compared to 55 cars, while in the 1,000-1,300cc category, 1,702 cars arrived as compared to 140 cars, Appraisement Collectorate figures revealed.
The figures show the passion among cash-rich buyers who are even not worried about the availability of costlier parts of these imported cars in the local market.
Auto parts dealers said there was no problem these days in getting parts and accessories of the imported cars but their prices are too high. Shaikh Mohammad Arman Hussain, Sindh circle chairman of the Pakistan Automobile Spare Parts Importers and Dealers Association, claimed that imported parts were now available in the local market, adding that six months back these parts were not available in the market.
“There are a few shops (12 or more) at the M.A. Jinnah Road Parts Market where imported parts are available,” he said, adding that there might be some problem for those vehicles whose volume of imports had been slow. Parts availability of imported cars and other vehicles depend on the volume of imports, he adds.
Against a vehicle population of nine million units by December 2004, the market needs parts worth over Rs80 billion annually, but legal imports stand at Rs10 billion per annum while the rest are smuggled. The local industry covered only five per cent requirement annually, he said.
Due to higher rate of 35 per cent customs duty, importers were bringing only those parts which were in high demand, he added.
Pakistani roads, already loaded with locally-assembled and decades- old used cars, now bear the brunt of imported cars on the back of consumers’ enthusiasm towards costlier cars, thanks to car financing schemes under which over 70 per cent cars are being sold (both locally-assembled and imported used cars).
The government netted Rs8.6 billion in the shape of customs duty during July-May 2005-06 from the import of 34,723 vehicles whose import value comes to Rs15 billion. In the same period last fiscal year, the customs duty collection was recorded at Rs3.7 billion from the import value of Rs5.6 billion of 10,658 vehicles.
However, the Appraisement Collectorate Group-V, after the computerisation of import procedure for used cars, has frustrated an attempt of illegal imports of two used Toyota Corolla, Suzuki van, Mini Pajero, Mazda truck and Toyota Vitz. The Appraisement Intelligence Branch has arrested three persons and started investigations.
A customs source said the Appraisement Collectorate had approached the insurance investigators and Interpol in Dubai, the UK and Japan after reports that stolen cars were finding their way into Pakistan.
The import of automobiles already exceeded the $1 billion mark during July-May 2005-06 and it may cross $1.5 billion by the end of the current fiscal year. Auto imports constitute almost 20 per cent of the machinery import group.
The country’s auto scenario marked the changes from August 2005, triggered by the liberalisation of car imports under various schemes to bridge the demand and supply gap.