The Federal Board of Revenue (FBR) has changed the definition of ‘tourist’ to allow tourists to temporarily import vehicles without any duties and taxes for a period of six months.
The FBR proposed amending the Customs Rules 2001 in a notification issued here on Friday.
According to SRO.201 (I) / 2021, “tourist” means “a person not normally resident in Pakistan, who enters Pakistan for a stay of not more than six months in the course of any twelve months period for legitimate non-immigrant purposes.”SRO 201(I)/2021
Previously, the definition of the tourist as per customs laws is that a tourist ” means a foreigner of any of the following categories who has no residence or occupation in Pakistan and whose stay in the country is not likely to exceed three months:”Previous Definition of Tourist
A person visiting Pakistan for recreation or sight-seeing or is in transit for a short duration;
Person travelling for domestic or health reasons;
A person on study or lecture tour or on pilgrimage;
Person travelling in his individual or representative capacity to attend a meeting or function of any scientific, administrative, educational, social, cultural sports or religious nature or for giving a performance;
A person travelling for business purposes;
A person arriving in the course of a sea cruise whose stay in Pakistan exceeds 24 hours.Categories of Tourists
Mechanism of Import
Under this procedure, a tourist who imports a vehicle against carnet-de-passage or against a bank guarantee can be delivered to Pakistan through the customs station in charge of the entry without paying the customs duty. Tourist will not transfer ownership of vehicles constructively or in a substantial manner to another person during stay in Pakistan.
Import of Vehicle for more period
Provided that if it is not practically feasible for the tourist to bring such vehicle within the said period. He then applies to the FBR before the expiry of this period. The FBR may allow only a period of three months. If the same vehicle re-enters Pakistan within a year of departure. Then it will only be allowed for vehicles operated by recognized foreign tour agencies. They allowed to re-enter at any one time for more than three months within a year.
Payment of Custom Duties and Taxes
Where the export of such a vehicle is not possible on the basis of the health, or circumstances beyond its control, or due to an accident in which the vehicle is involved. The FBR Can increase period for not more than 6 months on provision of fresh bank guarantee. Provided that if the importer wishes to retain the vehicle for which it permitted to retain beyond this period. Then he will obtain an import permit from the Ministry of Commerce and will pay customs duties and taxes on it on the date of its import.
Import of Vehicle for a Foreign Destination
If a tourist imports a vehicle to go to a foreign destination via Pakistan. The customs station entry in-charge, in the absence of a carnet-de-passage or bank guarantee. May allow the vehicle to pass through without payment of customs duty under escort. Thus, the details of the vehicle allowed to pass through Pakistan endorsed on the passport of the importer.
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