Motor Vehicle Unit

There are several important points you need to remember.

• The remittance of foreign exchange must be made through a commercial bank on a Letter of Credit, established prior to shipment.
• The age of the vehicle must be within the permitted limit. (Please refer Table 01 for information on permitted age limits

This depends on the value of the particular vehicle and the rates of duties applicable.

• For information with regard to determination of value of a motor vehicle, please see the answer to the question 04 below.
• For information with regard to rates of duties, please refer the Customs Tariff Guide published on our main web page.

Value of motor vehicles falling within HS headings 8702, 8703, 8704, 8705 and 8711, value is determined as follows

1. In case of a Brand New vehicle imported on an invoice issued or certified by the manufacturers, the transacted value shall be applied.
2. For all other vehicles, the value shall not be below 85% of the manufacturer’s value, excluding local taxes, of a similar or identical brand new vehicle at the country of export. (Please see Gazette Extraordinary No. 1971/10 of 14.06.2016 for more information)

For other vehicles, applicable value is the transacted value, adjusted according to the provisions of Articles to the WTO Valuation Agreement.

In short, HS stands for Harmonized System. These codes are introduced under Harmonized Commodity Description and Coding System formulated by the World Customs Organization, which covers 98% of the world trade. These codes are applied to internationally traded goods for various reasons. The most relevant reason is trade statistics. Also, they help identify local tax rates and legal restrictions and prohibitions on imports. These codes are used by almost all the countries in the world, and help uniform identification of internationally traded commodities, irrespective of language and other trade related barriers.

Yes. But the age must not exceed the permitted limit. (Please see table 01). If the age exceeds the permitted limit, a license from the Controller General of Imports &Exports must be obtained prior to importation.

In addition to the requirements to be fulfilled in importing a vehicle in to the country, as explained before, you must make sure that:

1. You possess a valid Concessionary permit
2. The value, as determined in terms of the regulations explained above, is within the permitted limit, at the time of establishment of the relevant letter of credit.
3. The other conditions relevant to the permit must be fulfilled. (These condition can be found on the permit itself, and the relevant Gazette Notification under which concessionary permits are issued)

Yes. However, the vehicle must be within the permitted age limit. If not, a permit from the Controller of Imports & Exports must be obtained prior to importation. Also, if the vehicle is imported on No Foreign Exchange Involved basis, necessary clearance must be obtained from the Controller General of Imports & Exports prior to importation.

No. Under the provisions of the Customs ordinance, the Customs clearance documents must be presented and the clearance formalities completed by a licensed Customs House Agent. However, Motor Bicycles brought in as part of unaccompanied personal baggage can be cleared by the passenger without a Customs House Agent.

Technically, a Motor Bicycle having engine capacity up to 350 cc can be brought in under baggage allowance. However, whether such a motor bicycle can be cleared duty free depends on your duty free allowance entitlement and the valuation of the vehicle. (Please see the answer given to “C” above). If the value of the motor bicycle exceeds the duty free allowance, Customs duty calculated proportionately has to be paid. You are strongly advised to consult the Motor Vehicles Unit before importing such a vehicle, so that you could be aware of the duty liability in advance.