Import of Used Japanese cars under gift scheme in compliance to S. R.O. 52(1)/2019

[mujtaba621]

How to pay for import of used Japanese car and their custom duty in foreign currency under gift scheme according to S. R.O. 52(1)/2019?
Kindly help

[mesumjanjua]

The amount of duty should be sent in the bank account of the sender's parents, wife or children in foreign currency. And the local bank would make Encashment certificate of the amount on your request which will be presented as a proof to the state bank of Pakistan.
For exact details you should contact a custom clearing agent.

[mujtaba621]

Thank you for your reply, one more question,
is it necessary for donor or receiver to take part in auction? or instead of him i can take part in auction from my auction account operated from Pakistan and i make payment to auction house from my account and when car comes at Karachi port all duties and taxes paid from receiver account?

[mesumjanjua]

Yeah, That's totally separate. Anyone can buy any car in auction that doesn't matter at all.

[mesumjanjua]

You can use the passport of any person, it can be your relative or family friend. Whom you trust with your duty money. That person has to be in that country for a specific period of time that i don't remember and a account in local bank of that country through which the amount if duty will be sent.. It can be your yourself if you fulfil the requirements.

[mesumjanjua]

+92 300 9273498
Waqat Ahmed.
He is a custom clearing agent who has cleared cars on SRO52. You can ask him about guidance and he will tell you everything accurately..

[mujtaba621]

Thanks, i got the point. Do you have the idea, is there any profit if i import a car of 4 or above grade with good interior and exterior grade (let suppose wagon r 2017) and sell in local market?. What is profit margin?. I have listened that mostly Pakistani dealer buy damaged cars, got them repaired, tamper auction sheet and sell in local market. A car with authentic good grade and auction sheet may not compete in the market as it will be a bit costlier.what is your opinion. Thanks and regards

[mesumjanjua]

Encashment has made this business almost impossible. First it makes car very expensive, even if you find a person with Encashment pastpart, you can use that passport for only 1 car in a year.
Secondly, I myself is an importer. It all depond on consumer budget. Most of the times the consumer wants to buy a 660cc car in 12 to 13 lac budget but the actual cost to the importer is much more than that. There are very few customers who understand this. A 4 grade car do sell with a profit but it is very slow as compared to reconditioned one. Because if there are 100 customers for grade cars there is 10000 customer for cheap alternative.
I imported majority of the accidental cars and sold them by telling the customer true picture of the car. There are people involved in fabrication but a sensible customer know how can the dealer sale a car lower than or equal to its actual cost. Customers are happy with the reconditioned because the work done on them is exceptional and by very professional Dentar and painters. They are good value for money and more reliable than locally assembled crap.

[mesumjanjua]

Can you make a profit? Yes, but before buying the car from auction calculate the total cost and compare it with the market value of the car. You will have an idea how much profit you can earn on it. Always play safe. Consider atleast minimum 1 lac if profit while bidding because sometimes the car may over cost and earn you nothing to very little.

[mesumjanjua]

Also, it has become very risky. Even if you fulfill all the requirements of SRO 52 there would be many hurdles in the way and the custom clearing delays by months and it also cost you damrage for standing the car at port and many fellow importer cars have been auctioned. So the people who were doing this business have left it. I will not recommend you to risk your money and look for some other business.

[mujtaba621]

Thank you, I want to do this business as a second source. I have many friends who are living abroad, their passports and family accounts can be used with their consent. I have list of about 20 such friends including family members. I want to experience this business by importing one or two vehicles at a time and may be four units in a year. First of all i am want to import a single vehicle for personal use and from that experience i may kick start.
As local cars prices are being hiked up regularly, the used JDM grade 4 may be sold in our market @ 1.4-1.6 millions.
Kindly share the name of some good reputed auction house of your personal experience.

[mujtaba621]

Yes you are right, this risk factor exists, that can make car more expensive

[mujtaba621]

Customers are happy with the reconditioned because the work done on them is exceptional and by very professional Dentar and painters. They are good value for money and more reliable than locally assembled crap.

Are you people complete reconditioning job locally or from Japan?

[mesumjanjua]

Ofcourse here locally.

[mesumjanjua]

I never took part in bid myself. My partner did, he was using services of SBT Japan and Tau. SBT is best, they give you access to an account which has access to many auction houses in Japan. As per him their services are best. For this, i would suggest you to take advise from someone who himself bids in auction not me.

[mujtaba621]

Thank you @mesumjanjua your suggestions/information really helpful. Thanks a lot. If you could share contact detail of your friend who took part in auction that would be highly thanked.