Pakistani expatriates in the UAE and other Gulf countries can now take used cars to their country following the Islamabad government's decision to lift a ban on used car imports after nine years.

The decision came as part of the new import policy announced by the government on July 21.

Under the new rules, Pakistani expatriates can take a vehicle of any model with them on transfer of residence (TR) provided they have stayed for at least two years in the country.

In addition, they can take a vehicle under the personal baggage scheme after six months abroad.

Also, they can send a vehicle to their relatives under a gift scheme. For both these categories, the vehicle should not be older than three years.

The government placed restrictions on the import of used cars on transfer of residence in 1996, making it compulsary that a vehicle should be registered in the name of the importer for at least two years. However, all imports were banned in 2001.

In the new policy, the registration condition has also been scrapped.

"I am delighted to hear this news. Now I can afford a car back home as well. It seems my dream of having a luxury car will come true," said Najamuddin, an accountant in Dubai.

Jamshid Malek, a computer engineer, said the decision should have come much earlier. "We thank our government for providing us an opportunity to take our cars back home on transfer of residence," he added.

Dubai houses the only right hand used cars free zone in the region.

Some 334 companies are operating in more than 400 car showrooms in the Al Awir Free Zone. They import the cars from Japan to Dubai and re-export them to various countries.

Attiq Cheema, vice-president of the Right Hand Used Car Market Association in Dubai, said the decision would give a boost to the right hand used cars market in Dubai.

"Car prices have already gone up and we have started receiving inquiries from car dealers in Pakistan as well," he added.

Shahid Qadir Khan, owner of Caravan Motors in Al Awir Free Zone, said that traders have not yet started to send cars to Pakistan because the policy is not yet clear.

"The officials at the Central Board of Revenue (CBR) should hold a meeting with used car dealers in Dubai to ensure smooth operations," he said.

He said that anyone taking a car back home has to go through a very lengthy procedure. "It should be simplified and a one window operation should be introduced to facilitate imports of cars," he said.

Mohammad Amir, Managing Director of Naz International Motors, said there are about 100,000 right hand used cars in the Dubai market. About 35 to 40 per cent of them can be exported to the Pakistan market.

"This has been a long standing demand and we thank the government for giving some relief to Pakistani expatriates," he added.

Documents

  • Purchase receipt
  • Passport copy or Pakistan origin card
  • Valid driving licence
  • Bill of lading given to the customs upon arrival
  • Customs Duty
  • Vehicles up to 1600 cc 50 per cent (on the value determined by Custom officials)
  • From 1600 cc to 1800 cc 65 per cent
  • From 1800 and above 75 per cent