Tourists granted 3-month, duty-free vehicle stay

The federal government has decided to allow tourists entering Pakistan from abroad to keep their vehicles in the country for three months without paying duty. For this purpose, amendments are being made to the regulations on the temporary import of vehicles.

The Federal Board of Revenue (FBR) has issued a draft to amend the Customs Rules of 2001 and has invited feedback and objections from relevant stakeholders on the proposed draft. Any objections received after the specified deadline will not be accepted, and the rules will be implemented through a gazette notification.

Officials state that under the proposed rules, tourists will be allowed to keep their vehicles in Pakistan without duty for three months. According to FBR officials, the tourist must submit a declaration not to transfer ownership of the vehicle.

If the vehicle is not re-exported after three months, a prior bank guarantee will need to be provided. In cases where the same vehicle re-enters Pakistan, the temporary stay period will be limited to only 14 days; however, a foreign tour agency's vehicle may be allowed a second three-month stay within the same year.

If the importer faces health issues or the vehicle is involved in an accident, a six-month stay may be permitted, but in this case, the tourist will be required to provide a new bank guarantee to the customs collector.

Failing to provide a bank guarantee will result in the vehicle being handed over to customs authorities. The importer will also have the option to pay customs duties and obtain a permit from the Ministry of Commerce.