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Islamabad vehicle registrations to be canceled for unpaid token tax from Jan 1

New vehicle import rules for foreign tourists introduced

by Arshad Khan
October 29, 2024
in Economy
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The vehicle can remain in the country for three months, with the possibility of an additional three-month extension, provided a valid carnet or bank guarantee is submitted.

New vehicle import rules for foreign tourists introduced. To promote tourism, the government of Pakistan and introduced new vehicle import rules for allowing foreign visitors to import vehicles duty-free for up to three months. The Federal Board of Revenue (FBR) issued notifications SRO 1649 and 1650 of 2024 to implement these changes, making travel easier for international tourists, especially those traveling by road.

Temporary Import for Tourists

Under the new rules, tourists can bring in vehicles by providing a carnet-de-passage or a bank guarantee. This allows the vehicle to be temporarily imported without payment of customs duties. Upon entry, the tourist must submit a declaration confirming that the car will not be sold or transferred during their stay in Pakistan.

The vehicle can remain in the country for three months, with the possibility of an additional three-month extension, provided a valid carnet or bank guarantee is submitted.

The rule mainly benefits affluent travellers, such as Middle Eastern royal families, who bring high-end vehicles for hunting trips. However, overland tourists entering Pakistan by road will also find this facility advantageous.

Re-entry for Tour Agencies

Foreign tour agencies are also set to benefit, as the same vehicle can re-enter Pakistan within a year for up to three months. In specific cases, vehicles can be released for up to 14 days after re-entering the country, provided a carnet-de-passage or bank guarantee is supplied.

In situations where tourists are unable to export the vehicle by the deadline, the FBR can grant an extension for up to six months. If the visitor wishes to keep the vehicle beyond this period, they must obtain an import permit from the Ministry of Commerce and pay the necessary duties and taxes.

Alongside these tourist-friendly changes, the FBR has tightened the Baggage Rules 2006 to curb commercial misuse. Previously, goods brought in commercial quantities by overseas Pakistanis could be released upon payment of duties and fines. However, under the new regulations, customs authorities will confiscate such goods outright, preventing commercial exploitation of duty-free privileges.

These measures aim to boost tourism while maintaining a strict check on commercial imports, ensuring that the duty-free facilities are not misused.

Tags: FBRFederal Board of Revenue
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