ISLAMABAD – In a major policy shift, the federal government has allowed the commercial import of sedan cars and other vehicles to meet a requirement set by the International Monetary Fund (IMF).
The development comes a week after the Economic Coordination Committee (ECC) decided to amend relevant provisions of the Import Policy Order, 2022 to allow the commercial import of used vehicles.
The government has added new categories to the Pakistan Customs Tariff for import of the vehicles.
Age Limit of Imported Vehicles
Initially, the government has allowed the import of only vehicles not older than five years until 30th June 2026, after which the vehicle age limit shall stand removed.
The government has directed that such commercial importation would remain subject to strict compliance with prescribed environmental and safety standards.
Customs Tariff for Car Imports
Customs Tariff Code 8702 and 8703 have been introduced for the commercial import of sedan cars.
Furthermore, Code 8704 has been integrated for the import of light commercial vehicles and vans.
Regulatory Duty
The government also approved the imposition of 40 percent Regulatory Duty (RD), in addition to the existing customs duties, on the commercial import of used vehicles (less than five years old). This enhanced duty will remain applicable until 30th June 2026.
Thereafter, the duty shall be reduced gradually by 10 percentage points per year, reaching zero by 2029-30, in line with the recommendations of the Tariff Policy Board.
