Introduction
Importing vehicles into Pakistan is a process governed by multiple laws, policies, and government departments. Whether you’re an overseas Pakistani bringing back a personal vehicle, an automobile importer, or a local business seeking to import commercial transport, it’s essential to understand the regulatory landscape surrounding vehicle imports in Pakistan.
This guide offers a complete walkthrough of vehicle import regulations, including permissible vehicle types, schemes for individuals and businesses, duties and taxes, customs clearance procedures, and documentation required by the Federal Board of Revenue (FBR), Ministry of Commerce, and Pakistan Customs.
1. Governing Laws and Regulatory Bodies
The vehicle import process is governed by the following laws and policies:
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Import Policy Order, 2022 (amended annually)
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Customs Act, 1969
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SROs (Statutory Regulatory Orders) issued by FBR
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Motor Vehicles Rules
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Pakistan Customs Tariff
Key Regulatory Bodies:
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Federal Board of Revenue (FBR)
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Pakistan Customs
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Ministry of Commerce
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Ministry of Industries and Production
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Engineering Development Board (EDB)
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National Database and Registration Authority (NADRA)
2. Categories of Vehicle Imports
A. Commercial Imports
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For importers/dealers
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Requires import license and registration with EDB
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Typically includes new vehicles only
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Subject to higher duties and strict compliance
B. Transfer of Residence / Baggage / Gift Scheme
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For overseas Pakistanis returning home
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Allows import of used vehicles under specific conditions
3. Import Schemes Explained
A. Transfer of Residence Scheme
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For expatriate Pakistanis living abroad for at least 700 days over the past 3 years
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Can import one vehicle (car, van, or SUV) per family
B. Baggage Scheme
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Available to Pakistanis visiting home after 180 days abroad
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Must be imported within 60 days of arrival
C. Gift Scheme
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Overseas Pakistani can gift a vehicle to a family member in Pakistan
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Allowed once every 2 years
Notes:
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Vehicles older than 3 years (cars) and 5 years (SUVs/commercial) are not allowed
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Right-hand drive (RHD) only
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Vehicles must be non-accidental and not modified
4. New vs. Used Vehicle Import Rules
| Feature | New Vehicles | Used Vehicles |
|---|---|---|
| Allowed Under | Commercial import | TR, Baggage, Gift Schemes |
| Age Limit | No limit (subject to latest emission rules) | 3 years (cars), 5 years (SUVs/commercial) |
| Duty | Full customs duty | Depreciation allowed (max 60%) |
| Documentation | Invoice, BL, Form-E, GD | Passport, proof of stay, driving license |
5. Customs Duties and Taxes on Vehicles
The customs duty and taxes on imported vehicles can significantly impact the total landed cost. These include:
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Customs Duty
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Sales Tax (18%)
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Income Tax (5–6%)
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Regulatory Duty (up to 100%)
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Additional Customs Duty (7%)
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Federal Excise Duty (for luxury cars/SUVs)
Depreciation for Used Vehicles:
Up to 60% depreciation is allowed on used vehicles under personal schemes (1% per month for the first year, then 0.5% thereafter).
6. Essential Documentation
| Document | Required For |
|---|---|
| Passport with exit/entry stamps | Proof of residence abroad |
| Driving License or Residence Permit | As evidence of overseas stay |
| Bill of Lading (BL) | Shipment details |
| Commercial Invoice | Purchase value and specs |
| Form-E / EIF | For commercial imports |
| Goods Declaration (GD) | Filed through WeBOC system |
| NIC / NICOP / CNIC | Identification |
| Undertaking / Declaration Forms | Required by Pakistan Customs |
7. Process of Importing a Vehicle into Pakistan
Step-by-Step Procedure:
Step 1: Verify eligibility under one of the import schemes
Step 2: Arrange necessary documents from abroad
Step 3: Ship vehicle through a reputable international carrier
Step 4: On arrival at the port (Karachi or Port Qasim), file a Goods Declaration (GD) through WeBOC
Step 5: Submit documents to Pakistan Customs
Step 6: Pay applicable duties and taxes via bank or online
Step 7: Complete customs inspection and clearance
Step 8: Apply for registration with Excise and Taxation Department
8. Prohibited and Restricted Imports
The following are not allowed under current import regulations:
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Vehicles with left-hand drive (LHD)
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Cut-and-weld (repaired) vehicles
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Cars with modified engines or structure
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Vehicles used for commercial purposes imported under personal schemes
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More than one vehicle per family in a 2-year period
9. Role of WeBOC in Vehicle Imports
WeBOC (Web-Based One Customs) is the online customs clearance system used in Pakistan. All importers or agents must:
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Be registered in WeBOC
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File the GD electronically
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Upload scanned documents
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Track clearance and duty payments
10. Common Challenges and How to Avoid Them
| Challenge | Solution |
|---|---|
| Misclassification of PCT code | Verify via FBR tariff manual or hire customs consultant |
| Delays in customs clearance | File GD properly; pay duties on time |
| High duties | Use depreciation or import under FTA if applicable |
| Missing documents | Prepare full documentation before shipment |
| Rejection due to LHD or age limit | Confirm specs with Pakistan import law before buying |
11. Penalties for Violations
| Violation | Penalty |
|---|---|
| Importing prohibited vehicle | Confiscation by customs |
| Misdeclaration of value or specs | Heavy fine + potential prosecution |
| Importing more than one vehicle in 2 yrs | Rejection of clearance + fine |
| Non-payment or short payment of duties | Additional taxes + penalty up to 100% |
12. Special Cases: EVs and Hybrids
Pakistan has allowed limited concessions for electric and hybrid vehicles:
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Electric Vehicles (EVs): 1% customs duty on CKD kits; reduced sales tax for 3 years
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Hybrid Vehicles: Partial exemption on duty depending on engine capacity
Note: These policies are updated frequently through Finance Acts or SROs.
13. Vehicle Registration After Import
Once cleared by customs, the importer must register the vehicle with the Excise and Taxation Department. Required documents include:
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Customs clearance certificate
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Vehicle Inspection Report
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Proof of tax payment
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NIC/CNIC
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Original invoice and BL
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Photographs and fingerprints of the applicant
14. Free Trade Agreements (FTAs) and Vehicle Imports
Some duty exemptions may apply under FTAs with China, Malaysia, or SAARC countries. However:
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Must provide Certificate of Origin
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Applies mostly to commercial or CKD units, not individual cars
15. Useful Resources
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FBR Tariff: https://www.fbr.gov.pk
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WeBOC: https://www.weboc.gov.pk
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Import Policy Order: https://www.commerce.gov.pk
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Excise Department (Vehicle Registration): Provincial websites
Frequently Asked Questions (FAQs)
Q1: Can I import a used car that’s 4 years old?
No. Only up to 3 years for cars and 5 years for SUVs/commercial vehicles.
Q2: Is depreciation allowed on new cars?
No. Depreciation applies only to used vehicles under personal import schemes.
Q3: Can I import a left-hand drive car for personal use?
No. Only right-hand drive vehicles are allowed under import law.
Q4: How long does vehicle customs clearance take?
Typically 5–10 working days, provided documents are complete.
Q5: Are electric vehicles exempt from all duties?
No. Only CKD kits or low-capacity EVs enjoy reduced duties under current policy.
How Sterling.pk Can Help
At Sterling.pk, we assist individuals and businesses with:
✅ Vehicle import documentation and compliance
✅ PCT classification and duty calculation
✅ WeBOC registration and GD filing
✅ Handling customs clearance and inspections
✅ Tax optimization and post-clearance registration
Let us help you import your vehicle safely, legally, and cost-effectively.
Conclusion
Vehicle import into Pakistan is a multi-step process governed by strict rules. Whether you’re a returning overseas Pakistani or an automotive importer, understanding the applicable schemes, duties, legal restrictions, and clearance procedures is critical to success.
Stay updated with the latest FBR and Ministry of Commerce notifications. Or, partner with experts like Sterling.pk to make your vehicle import process fast, compliant, and stress-free.
