FBR Places Strict Checks on Duty and Tax-Free Vehicle Imports by Certain Firms

The Federal Board of Revenue (FBR) has implemented stringent measures on the import of duty and tax-free vehicles by companies operating in the Gwadar Zone and Free Zone Areas.

On Tuesday, the FBR issued a regulatory framework titled “Import of Vehicles by Gwadar Zone and Free Zone Area Concession Holder and its Operating Companies Rules, 2024.”

According to the new rules, importers must submit an undertaking to the Collector of Customs at the time of import. This undertaking, formatted as per the prescribed regulations, commits the importers to adhere to the conditions outlined in PCT Code 9917 (3)(iii) of the Pakistan Customs Tariff and the associated rules. Failure to comply will result in the imposition of applicable duties and taxes on each vehicle at the time of import, along with any other penalties as per the law.

The clearance of these vehicles will be managed exclusively by the Collectorate of Customs in Gwadar to ensure proper monitoring and centralized record-keeping. If vehicles are imported through any other port, they must be processed through a Transshipment Permit (TP) and cleared at the Gwadar Collectorate.

Eligible importers are required to provide details of vehicles intended for construction, development, and operations of Gwadar Port and Free Zone Area to the relevant Authority. The Authority or its authorized officer will verify the actual need for such vehicles based on the importer’s activities, as defined under PCT Code 9917(3)(iii) of the Pakistan Customs Tariff. The Authority will also account for vehicles imported prior to the issuance of the new regulatory mechanism to regularize their use and ascertain future needs.

To avail the exemption, importers must submit a Declaration Form signed by the company’s CEO and certified by the Authority, specifically the Chairman of the Gwadar Port Authority. This certification will confirm that the imported vehicles are genuine and necessary for the stated purposes, within the prescribed quotas determined by the Authority.

The Authority is responsible for ensuring that all conditions outlined in these rules are met by the importers. This includes verifying that the vehicles are necessary for the company’s operations and business activities before certifying the import request.

Upon verifying the request’s genuineness and obtaining formal approval from the Ministry of Maritime Affairs, the Authority will submit an authorization letter via the WeBOC system. Only then can the importing company proceed with the import process.