The government reduced the age-limit of used cars from five years to three on December 15, 2012 in a bid to limit rising car imports in the country. PHOTO: FILE
Importers are making increased efforts to have around a 1,000 used cars released that have been blocked by customs at ports.
Most of these have not been cleared on the basis of exceeding the maximum age-limit – the imported cars are between 36 to 41 months-old against an allowed maximum of 36.
However, All Pakistan Motor Dealers Association (APMDA) Chairman H M Shahzad said the cars had been cleared by the Ministry of Commerce before being blocked by customs.
“On our request, the cars were cleared but customs blocked these cars again,” said Shahzad.
The APMDA chairman is due to meet tax officials today with the get-together between car importers and the Federal Board of Revenue arranged by the finance minister during his visit to Karachi last week.
“We are ready to pay the surcharge for importing over-age cars but we want to have them cleared immediately.”
The government reduced the age-limit of used cars from five years to three on December 15, 2012 in a bid to limit rising car imports in the country. Much to the satisfaction of local carmakers, imports have declined sharply since then.
On the flip side, Pakistan Automobile Manufacturers Assemblers Dealers Association (PAMADA) President Iqbal Shah advised the customs department to not release these cars “in any case”.
“Car importers continuously play these tactics to pressurise the customs department,” Shah told The Express Tribune.
“The local industry has time and again requested the government to nab used car importers as they are damaging the national economy by importing used cars through twisting schemes of personal baggage, gift and transfer of residence.”
Citing last year’s situation, Shah said customs allowed the clearance of over-age vehicles only as a one-time case against the payment of a small penalty. This, he said, was done to accommodate vehicles that were shipped prior to the government’s announcement of reducing the age limit of imported cars.
“Importers are now trying to deceive customs. Officials should take strict action against these importers and make an example out of them so that no one violates the law in the future.
“If customs clears these cars again, it will set a very wrong precedence and, in the future, everyone would try and do the same.”
Published in The Express Tribune, January 21st, 2014.
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Nothing is said when politicians, waderas and establishment import new duty-free cars that are later regularized after a token payment and duty is waived. Are the poor destroying the country's economy or the rich?? Don't have to be too brainy to figure it out!!!