KARACHI: Pakistan Customs can earn more than Rs6 billion as duty and taxes through clearance of around 10,000 imported cars stuck at the port.
These vehicles have been stuck at the Karachi port after the government had made it mandatory for the importers to pay duty and taxes in foreign exchange through production of bank certificate for Customs clearance.
The Economic Coordination Committee (ECC) of the cabinet in its meeting on February 7 had reversed its decision, which was approved by the federal cabinet in a meeting held two days ago, and allowed the import of vehicles under the policy that prevailed before October 2017.
Sources said that to implement the decision of the federal cabinet, the Ministry of Commerce would issue an amendment to the Import Policy Order – 2016, which is expected this week or early next week.
Under the Import Policy Order – 2016, commercial import of vehicles in new or used condition is not allowed. However, to facilitate overseas Pakistanis, the government has allowed the import of vehicles under personal baggage, gift, and transfer of residence schemes.
The policy order imposed the condition of arranging payment of duty and taxes through foreign remittances for import and clearance of 1800cc and 4X4 vehicles brought under personal baggage and gift schemes.
However, through a SRO issued October 23, 2017, the Ministry of Commerce amended the policy and made it mandatory to arrange foreign exchange through production of bank certificate for Customs clearance of all types of new and used vehicles brought under both the schemes.
The ministry also amended the policy on December 4, 2017 through a SRO and also made mandatory the requirement for cars imported under transfer of residence scheme. Owing to frequent changes in the policy, a huge number of cars are stuck at ports.
