Pakistan Customs has sought the permission from Federal Board of Revenue (FBR) to clear over 6,000 new and used vehicles, imported before January 9, 2018 without importers'' banking details. The ministry of commerce and textile ministry has recently approved a mechanism for a payment of duties and taxes on the import of new or used vehicles under personal baggage, transfer of residence and gift scheme, instructing the customs department to collect duty and taxes in foreign exchange arranged by Pakistani nationals or local recipient supported by bank encashment certificate showing conversion of local currency.

According to the approved mechanism, if vehicles are imported under the said schemes the payment of duties and taxes should originate from the bank account of Pakistani, sending vehicles from abroad. The remittance should either be received in local bank account of Pakistani national sending the vehicle from abroad or, in case his account is non-existent/inoperative the remittance should be received in the account of overseas Pakistani''s family member as defined in the import policy order. The said mechanism was aimed at curbing the misuse of schemes and rationalizing the imports of new or used vehicles.

However, the said decision has caused suspending the clearance of new and used vehicles and over 6000 cars are stuck at ports, creating negative impact on the revenue collection of the customs department, sources said. Keeping the said situation in view, the Model Collectorate of Customs (MCC) Appraisement South in a letter recommended the FBR that the instructions issued by the ministry of commerce and textile in consultation with the State Bank of Pakistan, prescribing a mechanism for payment of duty and taxes on the import of vehicles under personal baggage, transfer of residence and gift scheme are to be implemented for vehicles whose bill of lading is issued on or after January 9, 2018 in the light of clause 4 of Import Policy Order.

Following over 6000 new or used vehicles were presently lying at the ports for clearance, the Collectorates of Appraisement Region Karachi may allow clearance of the vehicles in accordance with SRO 1067(I)/2017 and SRO 1237(I)/2017 on production of Bank Encashment Certificate, showing conversion of foreign remittance to local currency supported by swift massage bearing reference to the importer without mentioning bank account number of the importer or any family member in respect of bill of lading issued before January 9, 2018. Meanwhile, the imported cars dealers, who were presently facing serious financial issues after the said decision, termed this proposal (if accepted) as a sign of relief.

Copyright Business Recorder, 2018