ISLAMABAD: The government has granted foreign visitors three months of temporary duty-free importation of automobiles in what appears to be an effort to encourage mobility among foreign tourists.
The government has also decided that the adjudicating authority will confiscate commercially transported goods in accordance with the 2006 Baggage Rules. SROs 1649 and 1650 of 2024 have been issued by the Federal Board of Revenue (FBR) to inform the public of the proposed modifications to the customs regulations.
A tourist will receive a delivery of a vehicle under the proposed amendments if they import it with a carnet-de-passage or a bank guarantee. For its three-month stay in Pakistan, the officer in charge of the customs station will deliver the entry without charging any taxes.
The tourist will, however, submit a declaration at the customs station or port of entry stating that he will not transfer ownership of the vehicle in any way, shape, or form during his time in Pakistan.
The facility appears to benefit Middle Eastern royal families and other elites who can afford to import their high-end hunting vehicles. Baggage rules have been amended to confiscate bulk goods. However, the facility will also be beneficial to road travelers to Pakistan.
If visitors are unable to export the vehicle by the deadline, it was also clarified that the customs collector may extend the vehicle’s stay for an additional three months. However, the carnet holder’s commitment to not leave the country during the extended period and a valid carnet-de-passage or bank guarantee are required for this extension.
It was decided that recognized foreign tour agencies would be permitted to re-enter the same vehicle for up to three months at a time after it had left within a year to make things easier for tourists. However, a camet-de-passage or bank guarantee can be used to temporarily release the same vehicle after exit for 14 days for the same tourist (non-Pakistani) or in their name (non-Pakistani).
In addition, it was determined that if the criterion was met, FBR would have the authority to extend the vehicle’s use time by up to six months. The vehicle must be turned over to the appropriate collector if the holder of the carnet does not obtain a legal extension.
In addition, it was agreed that the importer must obtain an import permit from the Ministry of Commerce and pay the customs and taxes imposed on the day of importation if he decides to keep the vehicle beyond the authorization period.
In addition, the officer in charge of the customs-station of entry may, in the absence of a carnet-de-passage or bank guarantee, permit the vehicle to pass through Pakistan without paying customs duties under escort from the customs-station of entry to the customs-station of exit with payment of escort charges determined by the relevant collector if it is imported by a tourist for use in a foreign country.
The tourist importer’s passport will be stamped with the information about the vehicle that is allowed to travel through Pakistan.
Baggage regulations The FBR amended the 2006 Baggage Rules in response to a second notification, SRO1649 of 2024, to discourage commercial use of this facility, which was previously restricted to overseas Pakistanis.
In the past, commercial quantities of goods could be released upon payment of duty and taxes at the statutory rates as well as a redemption penalty equal to 30% of the goods’ value. It was decided that such commercial goods would be confiscated completely by customs adjudication authorities.
