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FBR Proposes New Amendments for Temporary Vehicle Imports by Tourists in Pakistan

October 28, 2024
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In a move aimed at enhancing tourism and simplifying travel options for visitors, the Federal Board of Revenue (FBR) has introduced a draft amendment to Pakistan’s Customs Rules 2001, proposing substantial changes to regulations governing the temporary import of vehicles by tourists. The amendments are open for feedback from stakeholders, underscoring the FBR’s intention to provide more flexible travel options while ensuring regulatory oversight.

Key Highlights of the Proposed Amendment

According to the draft amendment, tourists will now be allowed to bring their vehicles into Pakistan on a duty-free basis for up to three months. However, this allowance comes with specific conditions, primarily to prevent unauthorized ownership transfers. Here are the major aspects of the proposed rules:

  1. Duty-Free Entry for Three Months
    Tourists can temporarily import their vehicles into Pakistan for a period of three months without paying customs duties. During this time, they must declare that they will not transfer ownership of the vehicle while within the country.
  2. Extensions with a Bank Guarantee
    If the vehicle is not re-exported after the initial three months, tourists can extend their stay by providing an advance bank guarantee to customs authorities. This guarantee allows customs collectors to extend the vehicle’s stay by another three months, bringing the total permitted duration to six months.
  3. Special Conditions for Re-entry
    Vehicles re-entering Pakistan are allowed a temporary stay of 14 days. However, vehicles operated by foreign tour agencies receive an exemption, allowing them a second three-month entry within a single year.
  4. Extended Stay in Unforeseen Circumstances
    Under special circumstances, such as a medical emergency involving the tourist or an accident involving the vehicle, the vehicle may stay in Pakistan for up to six months. However, a fresh bank guarantee must be furnished to the customs collector for this extension. If the guarantee is not provided, tourists are required to surrender the vehicle to the Customs department.
  5. Permit for Extended Stay
    For tourists seeking an even longer stay, a permit from the Ministry of Commerce allows an extension by paying the applicable customs duty, offering more flexibility for travelers who may wish to explore Pakistan beyond the stipulated time frames.

Impact of the Amendment on Tourism

This amendment is expected to boost tourism by making it easier for tourists to navigate the country with their own vehicles. By allowing duty-free entry and structured extensions, the FBR aims to promote a tourist-friendly environment while still maintaining control through regulated procedures.

Stakeholder Feedback and Implementation

The FBR is actively seeking feedback and recommendations from relevant stakeholders on the proposed changes. By doing so, they aim to strike a balance between flexibility for tourists and regulatory control, ensuring that the amendments benefit Pakistan’s tourism sector without compromising customs protocols.

These proposed changes reflect a step forward in making Pakistan a more accessible destination for international travelers who prefer the convenience of their own vehicles while exploring the country’s diverse landscapes.


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