Pakistan Allows Temporary Vehicle Imports To Promote Tourism

Web Desk — The Federal Government has allowed foreign visitors to temporarily import duty-free vehicles for three months in an effort to promote foreign tourist mobility.

The government has also decided that the adjudicating authority would confiscate goods carried in commercial quantities under the Baggage Rules 2006. The Federal Board of Revenue (FBR) has issued two different notifications to notify the proposed changes in the customs rules.

According to the proposed amendments, a tourist will be given delivery of a vehicle if he imports it with a carnet-de-passage or bank guarantee. The relevant customs officer will make the delivery of entry without payment of duties for its retention in Pakistan for three months.

However, the tourist will submit a declaration at the customs station or port of entry pledging that he will not constructively or materially transfer ownership of the car to anybody else during his stay in Pakistan.

The facility appears to benefit Middle Eastern royal families and other elites who can afford to import their high-end hunting vehicles. Likewise, the facility will also benefit those who visit Pakistan by road.

The customs collector might extend the vehicle’s stay for an additional three months if visitors cannot export the vehicle by the deadline. This extension will be subject to having a valid carnet-de-passage or bank guarantee and undertaking by the carnet holder that he will not leave the country during the extended period.

The FBR has also introduced amendments to the Baggage Rules 2006 to discourage the commercial use of this facility, which was originally available only for overseas Pakistanis.

Earlier, the goods brought in commercial quantity were allowed to be released on payment of duty and taxes at the statutory rates and the redemption fine equal to 30 percent of the value of goods. It was decided that the customs adjudication authorities would outrightly confiscate such commercial goods.