PM Shehbaz orders action on misuse of vehicle import schemes

ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to control the massive misuse of personnel baggage schemes, transfer of residence and gift scheme on the import of old and used vehicles.

Sources said that the personnel baggage scheme, transfer of residence, and gift scheme are reportedly misused on the import of old and used vehicles.

The FBR has received instructions from the Prime Minister in this regard. The FBR must ensure to implement the import policy on the import of old and used vehicles in spirit. It is expected that a major policy change would be made by restricting local sales of imported old vehicles in Pakistan for a period of three years.

The FBR will also propose legal changes to ensure that commercial importers remain unable to misuse the passports of overseas Pakistanis. The vehicles are imported in the name of overseas Pakistanis under baggage scheme and immediately sold in commercial markets.

Under the law, the overseas Pakistanis are entitled to import vehicles under personnel baggage scheme, transfer of residence and gift scheme who have not imported, gifted or received a vehicle during the last two years under Import Policy Order (IPO), 2022.

Finance Bill 2024 is expected to check misuse of the policy on the import of old and used vehicles, sources added.

Recently, the Federal Tax Ombudsman (FTO) has directed the Director, Directorate of Reforms & Automation, Karachi to develop and deploy e-CRF sent by the Collectorate of Customs, Appraisement (West), Karachi enabling the assessing officer to ensure that no goods declaration (GD) is filed on a new passport by the same importer, who has imported a vehicle on his old passport under Baggage, Transfer of Residence and Gift Scheme within the last two years.

The Director, Directorate of Reforms & Automation, Karachi also submitted comments stating therein that the complainant has pointed out delays in clearance of vehicles due to PRC and passport verification and that the matter pertains to the clearance collectorates. Online passport verification is also provided in the WeBOC system. However, if there is any other issue, an online CRF may be forwarded for taking necessary action by the Directorate.

Presently, the WeBOC system does not allow filing of GD if another GD is being filed on the same passport number within two years. However, there is no check if a new GD is filed on a new passport. Therefore, verification of the same is carried out through Pakistan Revenue Automation Limited (PRAL), department stated.

The departmental representative from the Collectorate stated that overseas Pakistanis are entitled to import vehicles under Personnel baggage scheme, Transfer of Residence and Gift scheme who have not imported, gifted or received a vehicle during last two years in terms of proviso to Para(2) of Appendix-E of Import Policy Order, 2022.

It was further stated that the WeBOC system does not allow filing of GDs if another GD is being filed on the same passport number within two years. However, there is no check if a GD is filed on the new passport.

The Collectorate of Customs, Appraisement (West) has already forwarded e-CRF to the Directorate of Reforms & Automation, Karachi, to incorporate additional checks in the WeBwith regard to new passports. This additionality in the system will enable the assessing officer to ensure that the import of vehicles is in compliance with the provisions of IPO, FTO order added.

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