Import Of Vehicles

Taxpayer’s Facilitation Guide
Brochure- ___ December 2010

Revenue Division helpline@fbr.gov.pk Federal Board of Revenue 0800-00-227, 051-111-227-227 Government of Pakistan www.fbr.gov.pk

Brochure –

Import of Vehicle

dedicated and professional workforce Our Values Integrity Professionalism Teamwork Courtesy Fairness Transparency Responsiveness For assistance and information on tax matters Please contact our help line center through Toll Free Telephone 0800-00-227 Telephone 051-111-227-227 or 051-111-227-228 Fax 051-9205593 E-mail helpline@fbr. autonomous and credible organization for optimizing revenue by providing quality service and promoting compliance with tax and related laws Our Mission Enhance the capability of the tax system to collect due taxes through application of modern techniques. satisfied.Our Vision To be a modern.pk Brochure – Import of Vehicle .fbr.gov.gov. effective.pk or Visit our tax facilitation center (located in all major cities) or any tax office or Visit our website at www. providing taxpayer assistance and by creating a motivated. progressive.

Income Tax Ordinance. In case of any conflict the legal provisions of the law shall always prevail over the contents of this brochure. 2001. The brochure explains in detail the conditions laid down in the Import Trade Policy and the structure of taxes under the Customs Act. Federal Board of Revenue. In this brochure some terms that are not familiar to taxpayers used for the first time are in italic bold and explained appropriately. 1990 and Capital Value Tax on import of vehicles. You can e-mail us at memberfate@fbr.Revenue Division Federal Board of Revenue Government of Pakistan Brochure . Comments and suggestions We welcome your comments about this brochure and your suggestions for future editions.gov. Constitution Avenue.____ February 2008 Introduction This brochure provides basic information for the benefit and use of taxpayers importing vehicle to understand their rights and obligations. This brochure is to assist the taxpayers and reflects the legal position at the time of printing.pk OR You can write to us at the following address: Facilitation and Tax Education. Sales Tax Act. 1969. Islamabad Brochure – Import of Vehicle .

Both new and used vehicles can be imported. trucks & excluding busses.IMPORT OF VEHICLES 1. laser levelers and land levelers and combined harvesters combined harvesters Motor cycles and scooters Not more than five Not more than Five Not more than Five years old model years old model years old model (year of (year of (year of manufacturer) manufacturer) manufacturer) A minimum of 700 days stay out-side Pakistan during the immediately preceding three years from the date A minimum of 700 days stay out-side Pakistan during the immediately preceding three years from the date A minimum of 180 days stay out-side Pakistan during the immediately preceding seven months from the date of application Import of Vehicle c. Importer‟s Period of stay out-side Pakistan Brochure – . New vehicles can be imported freely by any one. b. Agricultural tractors. harvesters bulldozers. The Trade Policy and Customs rules allow import of vehicles into Pakistan. Eligibility to import Type of vehicle that can be imported Table – I Applicable terms and conditions Transfer of Residence Gift Scheme Personal Baggage Scheme Scheme Once in two years (700 days after the date of Bill of Entry / Goods Declaration of an earlier import under any of the three schemes) Cars meant for Cars meant for Cars meant for transport transport of transport of of passengers excluding passengers passengers. vans. like any other goods. pickups. busses. 4X4 bulldozers. Used vehicles can only be imported by Pakistani Nationals under any of the following three schemes (certain restrictions and conditions apply): Transfer of residence Gift Personal baggage 4. pickups. 2. 3. trucks & Agricultural tractors. laser land bulldozers. a. under the generally applicable import procedures and requirements. The terms and conditions applicable for the import of vehicles under the above mentioned three schemes are tabled below: S. Model of the vehicle d. 4X~4 vehicles vans. trucks & vans. excluding busses. 4X4 pickups. Requirements No . laser land vehicles vehicles levelers and combined Agricultural tractors. on payment of applicable duty and taxes.

By parents to children (adult) ii. By sister to sister or brother v.e. By either of the spouse iv.of application of application e.: i. By brother to brother or sister Not applicable Brochure – Import of Vehicle . Donee (To whom the vehicle can be gifted) Not applicable A family member normally resident in Pakistan i. By children (adult) to parents iii.

SPECIAL REGIME 6. Income Tax and Capital Value Tax based on engine capacity. covering Custom Duty. Valid driving license of the applicant vi. The accumulated amount of taxes.400 Brochure – Import of Vehicle .f. dated not later than 120 days from the arrival of the applicant iv. under the above schemes. Used vehicles imported under the aforesaid three schemes but are not covered under the special regime. Bill of lading showing name and address of the consignee iv. Purchase receipt of the vehicle iii. Under the “Special Regime” the taxes are levied on the basis of engine capacity. i. Two different regimes are en-force for levy of the taxes payable on import of vehicles. Attested photo copy of the passport of Pakistan origin card of the donor v. Attested photo copy of the passport or Pakistan origin card (Original will be required at the time of clearance) Regular import of new vehicles 5. In this facilitation material. Bill of lading. dated not later than 120 days from the arrival of the applicant iv. Procedure and Documents etc. on import of the used vehicles meant for transport of passengers. Goods declaration in the prescribed form as per Annexure I ii. and Type of vehicle (Used vehicles meant for transport of passengers) Upto 800 CC (Asian makes only) Taxes US$ 4. CNIC of the donee i. Purchase receipt of the vehicle iii. Purchase receipt of the vehicle iii. Bill of lading. are tabled below: TABLE – II Special Regime covers: Certain specified used vehicles imported under the aforesaid three schemes. irrespective of the value of the vehicle and the optional or additional accessories. Acknowledged copy of the declaration given to the customs on arrival by the applicant i. if applicable. Goods declaration in the prescribed form as per Annexure I ii. if applicable. Attested photo copy of the passport or Pakistan origin card (Original will be required at the time of clearance) v. these are referred as Special Regime and Normal Regime. Normal Regime covers: New vehicles imported under the aforesaid three schemes. Goods declaration in the prescribed form as per Annexure I ii. Sales Tax.

11. 2007 30 Months and 20 days 20 July.600 US$ 5.400) US $ 3.100 US $ 462 (2% of US $ 23.000) US $ 9.00% Brochure – Import of Vehicle . 2005 th 1 July. please contact FBR‟s Help Line Center. 2006 th 1 May.320 (30% of US $ 4.400 US$ 18. The amount of taxes stated in Table – II. above.100) US $ 22. The following example would explain how the amount of taxes payable are determined under the above mentioned Special Regime: For enquiries about applicable duties and taxes on vehicles other than those meant for transport of passengers. Used vehicles imported under the aforesaid three schemes but are not covered under the special regime. Normal regime covers the import of following categories of vehicles: New vehicles imported under the aforesaid three schemes.000 US$ 15. and Regular import of new vehicles.000 US $ 1.700 US$ 23. Under the “Normal Regime” the taxes are levied on the basis of both engine capacity and value of the vehicle.320 (12% of US $ 11.400 US $ 1. are reduced on account of depreciation in value of the vehicle at the rate Particulars Example-I Transfer of Residence 800 CC (Asian Make) st NORMAL REGIME 10.100 of 1% for each completed month subject to a maximum of 50%. 7. 2007 12 Months and 20 days 12 Months 12% 20 July.00% 17. 9.00% 1.680 US $ 23. 2007 th 20 July. The rates of taxes under the normal regime on import of vehicles meant for transportation of passengers are tabled below: TABLE – III Type of vehicle (meant for transport of passengers) Customs Sales Income Duty on Tax on Tax on Value Duty Sales Assessed paid Tax paid (See value value Para 13 below) Used vehicles (Not covered under special regime) Special Federal Excise Duty on duty paid value Engine capacity Date of registration abroad Date of entry into Pakistan Period between first registration and entry into Pakistan Completed months Depreciation @ 1% per month Admissible depreciation (restricted to 50%) Full amount of taxes Reduction in taxes to the extent of the amount of depreciation Actual amount of taxes payable From 1601 CC to 1800 CC (Other than Asian makes) ExampleII Gift scheme 1299 CC (Any Make) st Example-III Personal baggage 1700 CC (Asian Make) st 1 Jan.080 US $ 11. 2007 02 Months and 20 days 30 Months 30% 02 Months 2% 30% 12% 2% US $ 4. are payable in US Dollars or equivalent amount in Pak Rupees converted at the rates prevailing at the time of making the payment of the taxes. The amount of taxes stated in Table – II above.Upto 800 CC (Other than Asian makes) From 801 CC to 1000 CC From 1001 CC to 1300 CC From 1301 CC to 1500 CC From 1501 CC to 1600 CC From 1601 CC to 1800 CC excluding jeeps (Asian makes only) US$ 6. 8.00 % 5. 12.638 75. Each completed month for depreciation is calculated from the date of first registration of the vehicle abroad to the date of entry into Pakistan.500 US$ 11.

Example-II Gift Scheme OR Regular Import 1600 CC Any make. % above 50. US $ 1.00% 13. Export model . plus 5% of the C&F value.00 % 17.00 % 17. 60.00% 75.000 US $ 100 US $ 100 US $ 100 Example-III Gift Scheme Example-IV Personal Baggage 2200 CC Any make. US $ 1. Other incidental charges. / additional From 1801 100. The following examples based on notional values.00 % 17. Landing charges at the rate of 1% of the CIF value.D.00% c.00% ii.00% vi.00 % 17. In case of used vehicles.00% R. would explain how the value of a vehicle is determined for the purpose of levy of taxes.00% 5.00 % 17. Used car US $ 1.FOB value at the time of its manufacture. Particulars Example-I Transfer of Residence 1800 CC European make.00% 17. is reduced on account of depreciation of the vehicle at the rate of 1% for each completed month subject to a maximum of 50%.00% 1. Japan to Karachi.00% 1.00 % 5.00% 60. the value determined as above. Domestic model .00% 5. under the above-mentioned Normal Regime. 5. Insurance in the country where manufactured or where first registered (in case of non-availability of insurance memo an amount equivalent to 1% of C&F value).00% v.00% 1. Ocean/air freight calculated from the country where originally manufactured. 15.00% CC and R. New Car.00% 17.00 % 5.00% 5. 14. as certified by the manufacturer or its authorized local agent.00% 1.000 US $ 100 US $ 100 US $ 100 FOB value as certified by the manufacturer at the time of its manufacturer Optional / additional accessories Local agent‟s commission Freight from country originally manufactured e.000 US $ 100 US $ 100 US $ 100 Engine capacity and make 1800 CC Any make. 100.00% 5. iv.00% 75.D.00% 1. 50.00% New Cars (Regular import or under aforesaid three schemes) Upto 800 CC From 801 CC to 1000 CC From 1001 CC to 1300 CC From 1301 CC to 1500 CC From 1501 CC to 1600 CC From 1601 CC to 1800 CC From 1801 CC and above 50.00% 1.00% 1. iii.g.00% 5.From 1601 CC to 1800 CC (Jeeps) 75.FOB value for similar export model certified by the manufacturer or its authorized agent.00 % 17. Used car US $ 1. Value of optional accessories.00 5. Used Car. b.00% 1.00% 1. (Osaka. In addition.Pakistan) Brochure – Import of Vehicle .00% 55. The value of a vehicle for the purposes of levy of above taxes is determined as under: a. Local agent‟s commission. the followings incidental charges and costs are added: i.00% 17.000 US $ 100 US $ 100 US $ 100 Each completed month for depreciation is calculated from the date of first registration abroad of the vehicle to the date of entry into Pakistan.

applicable rate 75% (75% of Value determined Rs. 2006 20 July.000 Custom Duty . 85 Rs.313 US $ 13 US $ 74 US $ 1. 2007 20 July.applicable rate 05% Rs. 119.313 US $ 13 US $ 74 US $ 1.Sub.400 20 April.313 US $ 13 US $ 74 US $ 1. 84.250 Income Tax .490 th US $ 1.300 US $ 13 US $ 1. 2007 29 Months & 20 days 29 Months 29 % 29% US $ 406 (29% of US $ 1.applicable rate 17% (17% of Value determined Rs. 119. 85 Rs. 2007 17 Months & 20 days 17 Months 17 % 17% US $ 238 (17% of US $ 1. Once the value is determined the amount of taxes payable are calculated as under: Value determined of 1600 CC new vehicle Under gift scheme (Example II) Rs.300 US $ 13 US $ 1.08.430 th th US $ 1. 2007 3 months 3 months 3% 3% US $ 42 (3% of US $ 1.250 Total Rs.400) US $ 1.300 US $ 13 US $ 1.400) US $ 994 US $ 1 =Rs.400 1 Feb. 115.400 US $ 1 =Rs. 89.000 Sales Tax .770 th US $ 1. 89.000 plus Custom Duty Rs.total(C & F value) Insurance @ 1% of C & F value Sub.162 US $ 1 =Rs.400 1 Feb. 2005 20 July.250 Rs.358 US $ 1 =Rs. 119. 85 Rs.400 NA NA NA NA NA Nil Nil st US $ 1.000 16.402 Brochure – Import of Vehicle . 2.400) US $ 1.313 US $ 13 US $ 74 US $ 1.total (CI F value) Landing charges @1% of CI F value Other incidental charges. 119. if any Value assessed Date of first Registration abroad Date of Entry in to Pakistan Period between first registration and entry into Pakistan Completed months Depreciation @ 1% per month Admissible depreciation (Restricted to 50%) Reduction in value to the extent of admissible depreciation Depreciated value in US $ for the purpose of levy of duty Prevailing exchange rate Depreciated value in Pak Rupees for the purpose of levy of duly st US $ 1. 35. 98.300 US $ 13 US $ 1. 85 Rs.

If you are satisfied – Tell others GOOD DECLARATION. NO 16.A.00% of Value determined Rs. 208.652 Rs. INDEX DATE 9. COUNTRY OF DESTINATION 18.(05% of Value determined plus Custom Duty plus Sales Tax Total Rs.250 Total Rs.STR NO. in the nations of the world. INDEX 11.250 Total Taxes Rs.H.918 Each tax rupee that you pay helps Pakistan improve its standing.00% (1.DECLARATION TYPE 10. 24. 243.L.CURRENCY NAME & CODE 30. PREVOUS REF 1. 3.DOCUMENTS ATTACHED E-FORM NO. 119. IMPORTER‟S/CONSIGNEE‟S/PASSENGER‟S NAME & ADDRESS 5.CUSTOMS OFFICE 7. If you are not satisfied – Tell us.PAGE 1 OF PAGES 6.VALUATION METHOD ANNEX-I 4. 35.VESSEL/MODE OF 23.C. MARKS/CONTAINER NOs.IGM/EGM REFERENCE & 8a.250 Rs. economically and socially.LC / DD NO. AWB. DECLARANT (OTHER THAN EXPORTER/IMPORTER) 12(a)TEL: 13. AND DATE 14.applicable rate 1. & 21.EXPORTER‟S/CONSIGNOR‟S NAME AND ADDRESS 2.402 Rs.WAREHOUSE LICENCE NO.NTN 15.BL.183 Special Federal Excise Duty .083 Rs. GD-1 ORIGINAL COPY CUSTOMS FILE NO.NO.000 Rs. 2. / PASSPORT NO.& DATE INV [ ]B/G BL/AWB/ [ ]IT EXMP CO [ ] 22. 12. JOB NO 17. BANK CODE 8.000 plus Custom Duty Rs. 19. 89.DRY PORT IGM/EGM REFERENCE & DATE 9a. TRANSACTION TYPE 20. 119. 138.EXCHANGE RATE Brochure – Import of Vehicle . CON. 89.

A.AMOUNT (PKR) RECOVERED CODE | LEVY 54.SRO/TEST REPORT NO & DT 58. UNIT VALUE 38.GENERAL DESCRIPTION OF GOODS 0 36. TOTAL REBATE CLAIM/ASSMNT U/S 81 61. MACHINE NO.RATE 48.TRANSPORT DATE 25. BANK STAMP Continued.ITEM DESCRIPTION OF GOODS 43. OUT OF CHARGE SIG. FREIGHT 52. 01 43. ASSESSED 38. PLACE OF DELIVERY 32. MENTION THE VALUE________________________ IS SAMPLE FORWARDED TO GROUP/LAB SPECIFICATION PCT HEADING WEIGHT (GROSS/NET) DATE OF MFG/EXPIRY------- Brochure – Import of Vehicle ANY ADDITIOANL EXAM REPORT SHEET (ATTACHED) --------------------------------------------------------------------------F) IGM/EGM ---------------------------------------------------------INDEX------------------------------------------------------------------ OTHERS .LEVY 42(a. INDICATE HAZARD CLASS/DIV. GOODS DECLARATION. LANDING CHARGES @% 55.) 45.VOLUME M3 WT (KG) 27.PORT OF DISCHARGE 31. UNIT VALUE DECLARED ASSESSED 44. & DATE 50. & STAMP DECLARANT‟S NAME & DESIGNATION SIG & DATE 65. & DATE 64.RATE 48.CUSTOMS VALUES (PKR) DECLARED ASSESSED 02 46.SRO NO. FLASHPOINT (IN C ) (b) NET WT (KG) 40.CUSTOMS VALUES (PKR) DECLARED ASSESSED 41. & STAMP 62.ITEM NO. FOB VALUE 51.TYPE OF PACKAGES 26.) 45. CO CODE 42. TOTAL VALUE DECLARED 37. ASSESSED VALUE 57. HS CODE (a) Unit type 42.LEVY 47.ITEM DESCRIPTION OF GOODS 44.SRO NO. 46. GD-I INQUIRY ADVICE/AMENDMENT /REJECTION (WITH GROUNDS) REGISTRATION BY CUSTOMS SHED STAFF A) DATE OF RECEIPT B) TIME OF RECEIPT C) REGN.NUMBER OF PACKAGES 35.PORT OF SHIPMENT 28. I/We declare that the above particulars are true & correct TOTAL: 63. NO EXAMINATION REPORT BY CUSTOMS SHED STAFF FOR BOND SECTION’S USE REGISTRATION BY PORT AUTHORITIES BOOK & PAGE NO ______________ _____ ______________ _____ ______________ _____ YES DISCREPANCIES DATE WHARFAGE CHARGES STORAGE CHARGES GATE PASS PHYSICAL EXAMINATION OBJECTIVE VERIFICATION NO A) LOCATION---------------------------------B) INSPECTED THE WHOLE COMPRISING --------CASES C) EXAMINED ----------% SELECTED CAES BEARING NOS--------------------------------------------------------------------D) CONTAINER NOS --------------------------------------------------------------------------E) MARKS AND NUMBERS QUANTITY ORIGIN DECLARATIONS AS PER PACKING LIST HAS THE VALUE BEEN APPRAISED IF YES. & STAMP 66.PAYMENT TERMS 29. P. SUM PAYABLE (PKR) 37. C/F/D NO. SUM PAYABLE (PKR) 49. A.ITEM NO. SIG. CO CODE 40.O‟S SIG. HS CODE 47.DELIVERY TERMS 33 (a)GROSS 34. CFR VALUE 53. 41. REVENUE 60. INSURANCE % 59. QUANTITY DECLARED 38(b) No of units ASSESSED 39. TOTAL VALUE DECLARED ASSESSED 42(a. QUANTITY (a) Unit type 38(b) No of units 39. IN THE CASE OF DANGEROUS GOODS. OTHER CHARGES 56.

. board and lodging expenses @ $ 10/5 per day for ………. The documents on which this certificate is based are annexed herewith for presentation to the Authority alongwith the certificate at the time of applying for issue of import permission. Also certified that it has been made clear to the applicant that the issue of the certificate does not in any way imply any commitment on the part of the Authority to issue the import permission. …………………………………………………………….. This is to certify that from the documents and evidence produced by Mr/Mrs/Miss……………………. his/her/total income by legitimate earnings during his/her stay in………… ……………………………………………………….Seal of the Mission.. 4. (ii) Signature……………………….. Net savings after deduction of taxes. Date………………………… (Name of the official in block letters) Designation ………………………………..…………………………. …………… Brochure – Import of Vehicle .(in words)………………. To …………………………… has been calculated as under:(i) Gross income…………………….……days…….. Place………………………………….…… …………………………………………. 2.CERTIFICATE (To be issued by the Pakistan Diplomatic Mission) 1.. 3.…… (in words)…………………………………………………. which shall be governed by the rules and Regulations in force at the time of filling of complete application with them.. The certificate is valid for six months for presentation to the Authority along with applications on Annex-III and other documents prescribed therein.……………………………. From……………………….

. (state relationship) who is living permanently in Pakistan at the following address:(Name)……………………………………………………. (Age) ……………………………………………………….. (v) that the car is not being gifted to a minor./Mrs. before me:. Signature ………………….. (in case of son/daughter). ……………………………………………. that I proceeded abroad on ………………………………… and I have completed two years stay abroad on…………… ………………………… (ii) that I propose to send a car as gift to my…………………. (Full address)………………………………………………. Date …………………………. The statement at (i)..…………………… 2. Brochure – Signature…………………… Name Seal of Pakistan Mission……………………………. This certificate which is being issued in quadruplicate under the instructions of the Ministry of Commerce is valid for six months for presentation to the Authority along with application on Annex-III and other documents prescribed therein. No.. Import of Vehicle .……………………………………………………………………………….………………. (iii). ……………………………… Dated……………………. The undersigned has further verified that the applicant did not visit Pakistan for a period of more than 60 days at a time during the last two years./Miss. Place……………….Son/daughter resident…………………………of……………………declare as under:(i) of………. Certified that the above declaration/undertaking has been executed and signed by Mr. ………………………………Date of issue……………………………………… Place of issue………………. (iii) that I have not imported a car for myself or for any member of my family during the past two years. (iv) that I shall not import another car within a period of two years even if I return within this period on retirement or transfer.Annex-III GIFT UNDERTAKING [See paragraph 1(d) Appendix-„E‟] (To be executed by a Pakistani national for the purpose of gift of motor car to a member of his family in Pakistan) I………………………... (vi) Details of my Passport are as under. Name ……………………… (in block letters) (Full Address(abroad)…….. who is residing at the following address...issued by…………………… (vii) that the car will be/has been purchased out of my own earning outside Pakistan. (vi) and (vii) have been verified by me. Enclosures ………………….

wealth statement and its reconciliation Publications Brochure – 001 Universal self-assessment and record keeping Brochure – 002 Business accounts. taxable income. and income tax payable / refundable For generating related computations. statements. initial allowance and amortization of capital expenditure Brochure – 011 The mechanism of Alternate Dispute Resolution Brochure – 012 Taxpayer’s Charter Brochure – 013 Import of vehicles Quarterly Review Year Book Pakistan Baggage Rules Taxation of capital gains Taxation of income from profit on debt Incomes subject to final taxation Sales Tax guide FATE “Facilitation And Tax Education “ Is the Key to Voluntary Compliance And Voluntary Compliance Is the Key to “Better Revenues” Grievance Under Publication Brochure – Import of Vehicle . reductions. business. capital gains and other sources.Other Facilitation and Tax Education Material Produced by Federal Board of Revenue Computer software Income Tax Assistant Version 1. applicable gross income tax.0 for the tax year 2003 Income Tax Assistant Version 1.1 for the tax year 2005 For computing chargeable income from salary. returns. exclusions from income.1 for the tax year 2004 Income Tax Assistant Version 1. property. credits etc. certificates. documents and records Brochure – 003 Taxation of income from salary Brochure – 004 Taxation of income from property Brochure – 005 Collection and deduction of tax at source Brochure – 006 How to fill in income tax forms Brochure – 007 Charities Brochure – 008 Income Tax Appeals Brochure – 009 Taxation of income from dividend Brochure – 010 Depreciation.

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