Originally published at: https://www.pakwheels.com/blog/non-custom-paid-cars/
Non-Custom Paid Cars: An Enigma
What are non-custom paid cars?
Many have heard of non-custom paid cars and yet not everyone knows what they are. More importantly, it baffles many that why can’t such cars, which can be obtained at a much cheaper price, be driven legally all over Pakistan but in certain specified areas only.
The non-custom paid cars or NCP cars are those vehicles which are imported into Pakistan without the payment of customs duty. Such vehicles enter Pakistan primarily from Balochistan and Afghanistan borders. Chaman is considered to be the hub of all such activity.
How much do they cost?
Most, if not all, NCPs are either luxury cars or SUVs. Since customs duty is not paid on them, they can be bought at a much lower rate. Not to exaggerate but to illustrate, you may be able to buy a Toyota Land Cruiser at the price of a Suzuki car.
No wonder many are searching for such cars
“ncp cars for sale in Pakistan,” “ncp cars for sale in Lahore,” “ncp cars for sale in Chaman,” are some of the top-searched queries in Pakistan. And the reason is simple: MONEY. Non-custom paid cars are top of the line cars, which can be driven for fraction of their cost in Pakistan. The phrase “sasta or mayari” aptly applies here.
What happens once these cars enter Pakistan?
It is a known secret that such cars are primarily used by the elite. Due to their influence, they may never bother to get their flashy vehicles registered or at best, get them registered by cutting corners.
In short, the Customs authorities have no official record of these cars and yet they are on the roads. Furthermore, do not forget, they are not stolen and the police don’t have their record either. An inherent danger here is that these cars can be used in illegal activities, including criminal and especially terrorism-related activities. Police have confiscated cars which were used by terrorists.
You, the law-abiding citizen, are the ultimate loser
Those who deal in such cars, sellers and buyers, make millions, while the government’s coffers remain empty. Furthermore, an average Pakistani, who either do not have access to such vehicles or is not interested in buying them, ends up buying the same car at a much higher price.
Another variant of NCPs
In addition to the above-mentioned category of NCP cars, there is another variety of non-custom paid cars, which are brought inside Pakistan due to an import duty waiver. Governments in the past through statutory regulatory orders (SRO) have done this for a limited time. This is a temporary measure wherein cars are allowed inside Pakistan without paying the import duty for a specified amount of time. Once the time lapse, the owner must either take the car back (outside of Pakistan) or pay applicable taxes on it. Those who are found in violation may get criminal cases registered against them.
What will happen if you fail to get your NCP car registered?
The authorities do not beat about the bush when it comes to cracking down on NCP cars in unauthorized areas. Recently, a fleet of such cars was recovered from a farmhouse in Islamabad. These cars reportedly belonged to the Qatari royal family. They were brought into Pakistan due to an SRO. The import duty on these cars was waived for three months. However, the royals failed to take back these cars even after three months and also failed to pay applicable duties.
What’s the law?
As mentioned earlier, NCP cars are NOT illegal per se in Pakistan. They can be legally driven in certain, specified regions.
The Economic Coordination Committee, which is chaired by the prime minister, vide its decision dated May 31, 2018, has decided the following:
- That such vehicles be allowed for another 5 years. This provision will end on June 30, 2023.
- That these vehicles will be allowed within the boundaries of FATA and PATA only.
- That if these vehicles come out of their described boundaries, they shall be liable to be seized.
How can you get your NCP car registered?
After June 30, 2023, the owners of such vehicles will be given the option of regularization of their vehicles upon the payment of applicable duties and taxes, along with surcharge provided that the details of such vehicles (make, model and chassis number) are verified/authenticated by the local administration of FATA/PATA to the Customs authorities by June 30, 2018.
What should the government do?
In an ideal world, Pakistan would not have porous borders and the writ of the government would be extended to all four corners. However, in reality, the best that the government can do is to reduce applicable taxes on the cars. This would dissuade many from buying NCP cars or least make them think twice. Second, local automobile manufacturers must be asked to up their game. Many believe that the available models of Toyota, Honda, Suzuki, and other locally manufactured cars do not offer value for money. On the other hand, NCP cars provide value for money albeit illegally – at a very high cost to both the government and the taxpayer. The government may further consider offering an amnesty scheme so that owners of such vehicles can get their cars registered legally without being penalized. Such schemes have been offered in the past, resulting in registration of thousands of such cars.
Now more than ever, this government requires taxpayer’s money. By offering an amnesty scheme, the government stands to gain millions, if not more.
