In order to circumvent the misuse of carnet de-passage/temporary importation of vehicles by foreigners/ex-patriate Pakistanis, the Federal Board of Revenue (FBR) has issued SRO 533 (I)/2023 dated 08.05.2023 amending the temporary importation of vehicles’ rules covered under Chapter VI of the Customs Rules 2001.

The tax machinery has discontinued the temporary import of duty-free vehicles for overseas Pakistanis and confined it to just foreign tourists.

Under the new rules, the definition of the “tourist” has been updated and new provisions have been incorporated to strictly monitor carnet-related information through Pakistan Customs Computerized System and by keeping close liaison with Federal Investigation Agency (FIA).

The passport of the tourist will be flagged with the carnet documents for proper reconciliation of vehicles imported under the carnet facility.

The old rules allowed tourists to bring vehicles into the country and take them back to their home country. The latest changes under SRO 533 (I) have withdrawn the temporary import of vehicles facility for Pakistani passport holders. Meanwhile, foreign passport holders will now be permitted to bring vehicles into the country.

All manual procedures have been swapped with a computerized system to assist travelers and prevent misuse of the facility. Simultaneously, a monthly report will be prepared to check the status of overstaying vehicles and to suggest timely penalties.

Additionally, the officer in charge of the customs station of entry will check all vehicles that entered through that station at the end of each month. If the records show that taxes and duties are still owed on a vehicle after the retention period has expired, steps will be taken to recover the owed amount. Vehicle seizure may also be considered.

Source: Pro Pakistani