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Pakistan’s amendments to its motor vehicle Import Policy Order 2022, as outlined in SRO 430(I)/2024, signify substantial shifts in regulations according to a publised report on Tuesday.

The update to the definition of a “new motor vehicle,” now encompassing vehicles manufactured within twelve months preceding importation with usage not exceeding 2000 kilometers, reflects a departure from the previous restriction of 500 kilometres. This adjustment broadens the scope for importing newer vehicles into the country.

Under the Import Policy Order 2002, specific conditions govern the import of motor vehicles. Notably, vehicles older than five years are prohibited from import under various schemes, except for secondhand or used bulletproof vehicles. Additionally, cars older than three years face restrictions under certain import schemes.

Determining a vehicle’s age is crucial, with calculations based on the period from January 1st of the year following manufacture until the date of shipment as per the bill of lading. Importers must adhere to minimum stay abroad requirements, ranging from 180 to 700 days, depending on the import scheme and purpose.

The policy also delineates procedures for duty and tax payments on imported vehicles. Importers must utilize foreign exchange arranged by Pakistani nationals or local recipients with bank encashment certificates. Flexibility is allowed in covering shortfalls due to currency depreciation or changes in import duties or taxes before filing the goods declaration.

Furthermore, motorcycles, scooters, and agricultural machinery such as tractors, bulldozers, and combined harvesters are subject to similar regulations as vehicle imports. Annual limitations exist for agricultural machinery imports under the gift scheme.