import of vehicles fbr 2010

8/7/2019 Import of vehicles fbr 2010

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Brochure Import of Vehicle

Import

OfVehicles

Brochure- ___December 2010

Revenue DivisionFederal Board of Revenue

Government of Pakistan

[email protected], 051-111-227-227www.fbr.gov.pk


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Our VisionTo be a modern, progressive, effective, autonomous and credible

organization for optimizing revenue by providing quality serviceand promoting compliance with tax and related laws

Our MissionEnhance the capability of the tax system to collect due taxes throughapplication of modern techniques, providing taxpayer assistance and bycreating a motivated, satisfied, dedicated and professional workforce

Our ValuesIntegrity

ProfessionalismTeamworkCourtesyFairness

TransparencyResponsiveness

For assistance and information on tax mattersPlease contact our help line center through

Toll Free Telephone 0800-00-227Telephone 051-111-227-227 or 051-111-227-228

Fax 051-9205593E-mail [email protected]

orVisit our tax facilitation center (located in all major cities) or any tax office

orVisit our website at www.fbr.gov.pk


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Revenue DivisionFederal Board of RevenueGovernment of Pakistan

Brochure - ____

February 2008

Introduction

This brochure provides basicinformation for the benefit and use oftaxpayers importing vehicle tounderstand their rights and obligations.The brochure explains in detail theconditions laid down in the Import TradePolicy and the structure of taxes under

the Customs Act, 1969, Income TaxOrdinance, 2001, Sales Tax Act, 1990and Capital Value Tax on import ofvehicles.

In this brochure some terms that are notfamiliar to taxpayers used for the firsttime are in italic bold and explainedappropriately.

This brochure is to assist the taxpayersand reflects the legal position at the

time of printing. In case of any conflictthe legal provisions of the law shallalways prevail over the contents of thisbrochure.

Comments and suggestionsWe welcome your comments about this

brochure and your suggestions for futureeditions.

You can e-mail us [email protected]

orYou can write to us at the following

address:Facilitation and Tax Education,

Federal Board of Revenue,Constitution Avenue,

Islamabad


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IMPORT OF VEHICLES

1. The Trade Policy and Customs rulesallow import of vehicles into Pakistan.Both new and used vehicles can beimported.

2. New vehicles can be imported freely by

any one, under the generally applicableimport procedures and requirements,like any other goods, on payment ofapplicable duty and taxes.

3. Used vehicles can only be imported byPakistani Nationals under any of the

following three schemes (certainrestrictions and conditions apply):

Transfer of residence

Gift

Personal baggage

4. The terms and conditions applicable for theimport of vehicles under the abovementioned three schemes are tabledbelow:

Table IS.No

.

Requirements Applicable terms and conditions

Transfer of ResidenceScheme

Gift Scheme Personal BaggageScheme

a. Eligibility toimport

Once in two years (700 days after the date of Bill of Entry / GoodsDeclaration of an earlier import under any of the three schemes)

b. Type of vehiclethat can beimported

Cars meant fortransport ofpassengers, busses,vans, trucks &pickups including4X4 vehicles

Agricultural tractors,bulldozers, laser landlevelers andcombined harvesters

Motor cycles andscooters

Cars meant fortransport ofpassengers,busses, vans,trucks & pickupsincluding 4X4vehicles

Agricultural tractors,bulldozers, laserland levelers andcombinedharvesters

Cars meant for transportof passengers, busses,vans, trucks & pickupsincluding 4X~4 vehiclesAgricultural tractors,bulldozers, laser landlevelers and combined

harvesters

c. Model of thevehicle

Not more than Fiveyears old model(year ofmanufacturer)

Not more than Fiveyears old model(year ofmanufacturer)

Not more than Fiveyears old model (year ofmanufacturer)

c.(i) Model of thevehicle

Only Jeeps of anytype Not more thanthree years oldmodel (year ofmanufacturer)

Only Jeeps of anytype Not more thanthree years oldmodel (year ofmanufacturer)

Only Jeeps of any typeNot more than threeyears old model (year ofmanufacturer)


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d. Period of stayout-sidePakistan

A minimum of 700days stay out-sidePakistan during theimmediatelypreceding three

years from the dateof application

A minimum of 700days stay out-sidePakistan during theimmediatelypreceding three

years from the dateof application

A minimum of 180 daysstay out-side Pakistanduring the immediatelypreceding seven monthsfrom the date of

application

e. Donee(To whom thevehicle can begifted)

Not applicable A family membernormally resident inPakistan i.e.:

i. By parents to children(adult)

ii. By children (adult) toparents

iii. By either of thespouse

iv. By sister to sister orbrotherv. By brother to brotheror sister

Not applicable


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5. Two different regimes are en-force for levy ofthe taxes payable on import of vehicles,under the above schemes. In this facilitationmaterial, these are referred as SpecialRegime and Normal Regime.

Special Regime covers:

Certain specified used vehiclesimported under the aforesaid three

schemes.

Normal Regime covers:

New vehicles imported under theaforesaid three schemes;

Used vehicles imported under theaforesaid three schemes but are notcovered under the special regime; and

Regular import of new vehicles

SPECIAL REGIME

levied on the basis of engine capacity,irrespective of the value of the vehicle andthe optional or additionalaccessories. Theaccumulated amount of taxes, coveringCustom Duty, Sales Tax, Income Tax andCapital Value Tax based on engine capacity,on import of the used vehicles meant fortransport of passengers, are tabled below:

TABLE II

Type of vehicle (Used vehicles

meant for transport ofpassengers)

Taxes

Upto 800 CC (Asian makesonly)

US$ 4,400

Upto 800 CC (Other thanAsian makes)

US$ 6,600

From 801 CC to 1000 CC US$ 5,500From 1001 CC to 1300 CC US$ 11,000From 1301 CC to 1500 CC US$ 15,400From 1501 CC to 1600 CC US$ 18,700From 1601 CC to 1800 CCexcluding jeeps (Asian makes

only)

US$ 23,100

For enquiries about applicable duties andtaxes on vehicles other than those meant for

transport of passengers, please contactFs Help Line Center.

7. The amount of taxes stated in Table II,above, are reduced on account ofdepreciation in value of the vehicle at the rateof 1% for each completed month subject to amaximum of 50%.

Each completed month for depreciation is

calculated from the date of firstregistration of the vehicle abroad to thedate of entry into Pakistan.

8. The amount of taxes stated in Table II above,are payable in US Dollars or equivalentamount in Pak Rupees converted at the ratesprevailing at the time of making the paymentof the taxes.

9. The following example would explain how theamount of taxes payable are determinedunder the above mentioned Special Regime:

Particulars Example-ITransfer ofResidence

Example-IIGiftscheme

Example-IIIPersonal baggage

Enginecapacity

800 CC(AsianMake)

1299 CC(AnyMake)

1700 CC(Asian Make)

Date ofregistrationabroad

1st

Jan,2005

1st

July,2006

1st

May, 2007

Date of entryinto Pakistan

20th

July,2007

20th

July,2007

20th

July, 2007

Periodbetween firstregistration

and entryinto Pakistan

30 Monthsand 20days

12Monthsand 20

days

02 Months and 20 days

Completedmonths

30 Months 12Months

02 Months

Depreciation@ 1% permonth

30% 12% 2%

Admissibledepreciation(restricted to50%)

30% 12% 2%

Full amountof taxes

US $ 4,400 US $11,000

US $ 23,100

Reduction intaxes to the

extent of theamount ofdepreciation

US $ 1,320(30% of

US $4,400)

US $1,320

(12% ofUS $11,000)

US $462

(2% of US $ 23,100)

Actualamount oftaxespayable

US $ 3,080 US $9,680

US $ 22,638


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NORMAL REGIME

10. Under the the taxesare levied on the basis of both enginecapacity and value of the vehicle.

11. Normal regime covers the import offollowing categories of vehicles:

New vehicles imported under theaforesaid three schemes;

Used vehicles imported under theaforesaid three schemes but are notcovered under the special regime; and

Regular import of new vehicles.

12. The rates of taxes under the normalregime on import of vehicles meant fortransportation of passengers are tabledbelow:

TABLE IIIType ofvehicle(meant fortransport ofpassengers)

CustomsDuty onValueAssessed(SeePara 13below)

SalesTax onDutypaidvalue

IncomeTax onSalesTax paidvalue

SpecialFederalExcise Dutyon dutypaid value

Used vehicles (Not covered under special regime)

From 1601CC to 1800CC (Otherthan Asianmakes)

75.00% 17.00%

5.00% 1.00%

From 1601CC to 1800CC (Jeeps)

75.00% 17.00%

5.00% 1.00%

From 1801CC andabove

100.00%R.D.50.00%

17.00%

5.00% 1.00%

New Cars (Regular import or under aforesaid three schemes)

Upto 800 CC 50.00% 17.00%

5.00% 1.00%

From 801 CC

to 1000 CC

55.00% 17.00

%

5.00% 1.00%

From 1001CC to 1300CC

60.00% 17.00%

5.00% 1.00%


60.00% 17.00%

5.00% 1.00%


75.00% 17.00%

5.00% 1.00%


75.00% 17.00%

5.00% 1.00%

From 1801CC andabove

100.00%R.D.50.00%

17.00%

5.00% 1.00%

13. The value of a vehicle for the purposes oflevy of above taxes is determined as under:

a. Export model - FOB value at the time of itsmanufacture, as certified by themanufacturer or its authorized local agent.

b. Domestic model - FOB value for similarexport model certified by the manufactureror its authorized agent, plus 5% of theC&F value.

c. In addition, the followings incidental

charges and costs are added:i. Value of optional / additional

accessories;

iii. Ocean/air freight calculated from thecountry where originallymanufactured;

iv. Insurance in the country wheremanufactured or where first registered(in case of non-availability of

insurance memo an amountequivalent to 1% of C&F value);

v. Landing charges at the rate of 1% of theCIF value;

vi. Other incidental charges;

14. In case of used vehicles, the valuedetermined as above, is reduced on accountof depreciation of the vehicle at the rate of2% for each completed month subject to amaximum of 50%.

Each completed month for depreciation iscalculated from the date of first registrationabroad of the vehicle to the date of entry intoPakistan.

15. The following examples based on notionalvalues, would explain how the value of avehicle is determined for the purpose of levyof taxes, under the above-mentioned NormalRegime.


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Particulars Example-ITransfer ofResidence

Example-IIGift SchemeORRegular Import

Example-IIIGift Scheme

Example-IVPersonalBaggage

Engine capacity and make 1800 CCEuropean

make,Used car

1600 CCAny make,

New Car.

1800 CCAny make,

Used car

2200 CCAny make,

Used Car.

FOB value as certified by the manufacturer atthe time of its manufacturer

US $ 1,000 US $ 1,000 US $ 1,000 US $ 1,000

Optional / additional accessories US $ 100 US $ 100 US $ 100 US $ 100

US $ 100 US $ 100 US $ 100 US $ 100

Freight from country originally manufacturede.g. (Osaka, Japan to Karachi- Pakistan)

US $ 100 US $ 100 US $ 100 US $ 100

Sub- total(C & F value) US $ 1,300 US $ 1,300 US $ 1,300 US $ 1,300

Insurance @ 1% of C & F value US $ 13 US $ 13 US $ 13 US $ 13

Sub- total (CI F value) US $ 1,313 US $ 1,313 US $ 1,313 US $ 1,313

Landing charges @1% of CI F value US $ 13 US $ 13 US $ 13 US $ 13

Other incidental charges, if any US $ 74 US $ 74 US $ 74 US $ 74

Value assessed US $ 1,400 US $ 1,400 US $ 1,400 US $ 1,400

Date of first Registration abroad 1st

Feb, 2005 NA 1st

Feb, 2006 20th

April,

2007Date of Entry in to Pakistan 20th

July,2007

NA 20th

July,2007

20th

July,2007

Period between first registration and entry intoPakistan

29 Months& 20 days

NA 17 Months& 20 days

3 months

Completed months 29 Months NA 17 Months 3 months

Depreciation @ 1% per month 29 % NA 17 % 3%

Admissible depreciation (Restricted to 50%) 29% Nil 17% 3%

Reduction in value to the extent of admissible

depreciation

US $ 406

(29% of US $1,400)

Nil US $ 238

(17% of US $1,400)

US $ 42

(3% of US $1,400)

Depreciated value in US $ for the purpose oflevy of duty

US $ 994 US $ 1,400 US $ 1,162 US $ 1,358

Prevailing exchange rate US $ 1 =Rs.85

US $ 1 =Rs. 85 US $ 1 =Rs.85

US $ 1 =Rs.85

Depreciated value in Pak Rupees for thepurpose of levy of duly

Rs. 84,490 Rs. 119,000 Rs. 98,770 Rs. 115,430


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16. Once the value is determined the amount of taxes payable are calculated as under:

Value determined of 1600 CC new vehicleUnder gift scheme (Example II) Rs. 119,000

Custom Duty - applicable rate 75%(75% of Value determined Rs. 119,000 Rs. 89,250

Sales Tax - applicable rate 17%(17% of Value determined Rs. 119,000

plus Custom Duty Rs. 89,250Total Rs. 2,08,250 Rs. 35,402

Income Tax - applicable rate 05%(05% of Value determined Rs. 119,000

plus Custom Duty Rs. 89,250plus Sales Tax Rs. 35,402Total Rs. 243,652 Rs. 12,183

Special Federal Excise Duty - applicable rate 1.00%(1.00% of Value determined Rs. 119,000

plus Custom Duty Rs. 89,250Total Rs. 208,250 Rs. 2,083

Total Taxes Rs. 138,918

Each tax rupee that you pay helps Pakistan improve its standing, economically andsocially, in the nations of the world.

If you are not satisfied Tell us.

If you are satisfiedTell others


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GOOD DECLARATION. GD-1 ORIGINAL COPY CUSTOMS FILE NO. ANNEX-I 2.DECLARATION TYPE 3.VALUATION

METHOD4. PREVOUS REF

5.PAGE 1 OF PAGES 6.CUSTOMS OFFICE 7. BANK CODE

8.IGM/EGM REFERENCE &DATE

8a. INDEX

9.DRY PORT IGM/EGM REFERENCE & DATE 9a. INDEX

11. DECLARANT (OTHER THAN EXPORTER/IMPORTER)

12(a)TEL:13.C.H.A.L. NO JOB NO14.NTN 15.STR NO. / PASSPORT NO. 16.WAREHOUSE LICENCE NO. 17. TRANSACTION TYPE

18.DOCUMENTS ATTACHED E-FORM NO.& DATE INV [ ]B/G BL/AWB/ [ ]IT EXMP CO [ ]

19.LC / DD NO. AND DATE 20. COUNTRY OF DESTINATIO

21.CURRENCY NAME & CODE 30. MARKS/CONTAINER NOs.

22.VESSEL/MODE OFTRANSPORT

23.BL, AWB, CON- NO. &DATE

24.EXCHANGE RATE

25.PORT OF SHIPMENT 26.PAYMENT TERMS

27.PORT OF DISCHARGE 28. PLACE OF DELIVERY 29.DELIVERY TERMS

31.NUMBER OF PACKAGES 32.TYPE OF PACKAGES 33 (a)GROSSWT (KG)

(b) NET WT(KG)

34.VOLUME M3

35.GENERAL DESCRIPTION OF GOODS

36. IN THE CASE OF DANGEROUS GOODS, INDICATE HAZARD CLASS/DIV; FLASHPOINT (IN C0

)

37.ITEM NO.

0138. QUANTITY(a) Unit type

38(b) No ofunits

39. CO CODE 40.SRO NO. 41. HS CODE

42.ITEM DESCRIPTION OF GOODS 46.LEVY 47.RATE 48. SUM PAYABLE(PKR)42(a.)

43. UNIT VALUE 44. TOTAL VALUE 45.CUSTOMS VALUES(PKR)

DECLARED ASSESSED DECLARED ASSESSEDDECLARED ASSESSED

37.ITEM NO.

02

38. QUANTITY

(a) Unit type

38(b) No of units 39. CO CODE 40.SRO NO. 41. HS CODE

42.ITEM DESCRIPTION OF GOODS 46.LEVY 47.RATE 48. SUM PAYABLE(PKR)42(a.)

43. UNIT VALUE 44. TOTAL VALUE 45.CUSTOMS VALUES(PKR)

DECLARED ASSESSED DECLARED ASSESSED DECLARED ASSESSED

49.SRO/TEST REPORT NO & DT 50. FOB VALUE 54. LANDING CHARGES @%

51. FREIGHT 55. OTHER CHARGES

52. CFR VALUE 56. ASSESSED VALUE

53. INSURANCE % 57. TOTAL REBATE CLAIM/ASSMNT U/S 81

58. MACHINE NO. &DATE

59. REVENUERECOVERED

CODE | LEVY

TOTAL:

60.AMOUNT (PKR) STAMP

62. P.A. SIG. & STAMP

63. OUT OF CHARGESIG. & STAMP

64. I/We declare that the above particulars are

true & correct

DATE65. C/F/D NO. & DATE

66. BANK STAMP

Continued.


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GOODS DECLARATION. GD-I

INQUIRY

ADVICE/AMENDMENT /REJECTION

(WITH GROUNDS)

REGISTRATION BY CUSTOMS SHED STAFF

A) DATE OF RECEIPT

B) TIME OF RECEIPT

C) REGN. NO

REGISTRATION BY PORT AUTHORITIES

BOOK & PAGE NO DATE

WHARFAGE CHARGES ______________ _____

STORAGE CHARGES ______________ _____

GATE PASS ______________ _____

EXAMINATION REPORT BY CUSTOMS SHED STAFF

A) LOCATION----------------------------------

B) INSPECTED THE WHOLE COMPRISING --------CASES

C) EXAMINED ----------% SELECTED CAES BEARING

NOS---------------------------------------------------------------------

D) CONTAINER NOS

---------------------------------------------------------------------------

E) MARKS AND NUMBERS

---------------------------------------------------------------------------

F) IGM/EGM ----------------------------------------------------------

INDEX------------------------------------------------------------------

DETAILED REPORT:

EO (name, sig, seal & dt) AO (name, sig, seal & dt) PA(name, sig, seal & dt) AC (name, sig, seal & dt)

IMPORT/EXPORT/IN-BOND/EX-BOND/TRANSIT

DATE TIME CONTAINEDR/

VEHICLE NO

NO. OF

PKGS

GATE

PASS NO.

SEAL

NO.

M.R. NUMBER AND DATE

Allow loading

AO (name, sig, seal & dt)

PA ( name, sig, dt)

AC (name, sig, Seal & dt)

TOTAL DECLARED

CLEARED

BALANCE

PHYSICAL EXAMINATION

DISCREPANCIES

SPECIFICATION

QUANTITY

ORIGIN

PCT HEADING

WEIGHT (GROSS/NET)

DATE OF MFG/EXPIRY-------

OTHERS

SPECIAL REMARDS

OBJECTIVE VERIFICATION

YES NO

DECLARATIONS AS PER PACKING LIST

HAS THE VALUE BEEN APPRAISED

IF YES, MENTION THE VALUE________________________

IS SAMPLE FORWARDED TO GROUP/LAB

ANY ADDITIOANL EXAM REPORT SHEET

(ATTACHED)


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Annex-IIIGIFT UNDERTAKING

[See paragraph 1(d)Appendix-

(To be executed by a Pakistani national for the purpose of gift of motor car to a member of his family inPakistan)

-

(i) and I have completed two years stay abr

(ii) (state relationship) who is living permanently in Pakistan at the following address:- (in case of son/daughter).

(iii) that I have not imported a car for myself or for any member of my family during thepast two years.

(iv) that I shall not import another car within a period of two years even if I return withinthis period on retirement or transfer;

(v) that the car is not being gifted to a minor;(vi) Details of my Passport are as under;

(vii) that the car will be/has been purchased out of my own earning outside Pakistan.(in block letters)

Certified that the above declaration/undertaking has been executed and signed by

ho is residing at the following address,before me:-

2. The statement at (i), (iii), (vi) and (vii) have been verified by me. The undersigned has furtherverified that the applicant did not visit Pakistan for a period of more than 60 days at a time duringthe last two years. This certificate which is being issued in quadruplicate under the instructions ofthe Ministry of Commerce is valid for six months for presentation to the Authority along withapplication on Annex-III and other documents prescribed therein.

Name


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Other Facilitation and Tax Education Material Produced byFederal Board of Revenue

Computer software Income Tax Assistant Version 1.0 for the tax year 2003Income Tax Assistant Version 1.1 for the tax year 2004

Income Tax Assistant Version 1.1 for the tax year 2005For computing chargeable income from salary, property, business, capital gainsand other sources, exclusions from income, taxable income, applicable grossincome tax, reductions, credits etc. and income tax payable / refundable

For generating related computations, returns, certificates, statements, wealthstatement and its reconciliation

Publications Brochure001 Universal self-assessment and record keepingBrochure002 Business accounts, documents and recordsBrochure003 Taxation of income from salaryBrochure004 Taxation of income from property

Brochure005 Collection and deduction of tax at sourceBrochure006 How to fill in income tax formsBrochure007 CharitiesBrochure008 Income Tax AppealsBrochure009 Taxation of income from dividendBrochure010 Depreciation, initial allowance and

amortization of capital expenditureBrochure011 The mechanism of Alternate Dispute ResolutionBrochureBrochure013 Import of vehicles

Quarterly ReviewYear Book

Under Publication Pakistan Baggage RulesTaxation of capital gainsTaxation of income from profit on debtIncomes subject to final taxationSales Tax guide

F A T E

Is the Key toVoluntary Compliance

AndVoluntary Compliance

Is the Key to

Grievance

import of vehicles fbr 2010

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