FBR Places Strict Checks on Import of Duties and Taxes Free Vehicles by Certain Firms

The Federal Board of Revenue (FBR) has placed strict checks on the import of duties and tax-free vehicles imported by the companies operating in Gwadar Zone and Free Zone Areas.  The FBR on Tuesday issued regulatory mechanism “Import of Vehicles by Gwadar Zone and Free Zone Area Concession Holder and its Operating Companies Rules, 2024”.  At the time of import, the importer shall furnish to the Collector of Customs on the set format an undertaking to abide by the conditions as laid down in the PCT Code 9917 (3)(iii) of Pakistan Customs Tariff and  rules made thereunder failing which they shall be liable to pay the duty and taxes as leviable on each vehicle at the time of import and any other penalties that may be imposed in accordance with the law.  The clearance of vehicles shall strictly be handled by the Collectorate of Customs, Gwadar to properly monitor such imports and to ensure centralization of record/data. However, if the import is made from any other port, the same shall be processed through a Transshipment Permit (TP) for the destination Port Gwadar for clearance at Gwadar Collectorate.  The eligible importer shall furnish to the Authority, or any other officer authorized by it on this behalf details of vehicles intended to be  imported for the sole purpose of construction, development and operations of Gwadar Port and Free Zone Area, and the Authority or the officer authorized by it, as the case may be, shall ascertain the actual requirement of such importer based on the nature of activities of the importer strictly in accordance with the scope as defined under PCT Code 9917(3) (iii) of Pakistan Customs Tariff The Authority shall also take into account vehicles which have already been imported prior to issuance of the regulatory mechanism to regularize the same in terms of their bonafide use and to ascertain future requirements of concerned importer, FBR added.  In order to avail exemption, eligible importer shall furnish to the Authority a Declaration Form duly signed by the chief executive officer of the Company which shall be certified by the Authority, i.e. Chairman of Gwadar Port Authority, in respect of each vehicle imported, certifying in prescribed manner that such imported vehicles are genuine and bonafide requirements for construction, development and operations of Gwadar Port and Free Zone Area in accordance with the prescribed quotas to be determined by the Authority.  The authority shall verify that the conditions in these rules have been satisfied before the issuance of this Authorization.  The Authority shall be responsible for ensuring that all other conditions as per these rules have also been fulfilled by the importer and the vehicles are bonafide requirements of the company and the same are in commensuration of their business activity before certifying the genuineness of request/declaration of the importer.  The Authority shall verify genuineness of request of the importing company, and after getting formal approval of the import of vehicles from the Ministry of Maritime Affairs, Government of Pakistan, an authorization letter as per actual requirements of the eligible company in the format as per Annex-B shall be submitted by the Authority through WeBOC system. Thereafter, the importing company shall initiate the process of import.