New vehicle import rules for foreign tourists introduced

ISLAMABAD: To promote tourism, the government of Pakistan and introduced new vehicle import rules for allowing foreign visitors to import vehicles duty-free for up to three months.

The Federal Board of Revenue (FBR) issued notifications SRO 1649 and 1650 of 2024 to implement these changes, making travel easier for international tourists, especially those traveling by road.

Re-entry for Tour Agencies

Foreign tourism agencies are also beneficiaries, as the same vehicle can re-enter Pakistan for up to three months within a year. In certain cases, vehicles may be left for up to 14 days after re-entry into the country, provided a carnet de passage or bank guarantee is provided.

In situations where tourists are unable to export the vehicle by the deadline, the FBR can grant an extension of up to six months. If the visitor wants to keep the vehicle beyond this period, he has to obtain an import permit from the Ministry of Commerce and pay the necessary duties and taxes.

Along with these tourist-friendly changes, the FBR has tightened the Baggage Rules 2006 to prevent commercial misuse. Earlier goods brought in commercial quantities by overseas Pakistanis could be released on payment of duty and penalty. However, under the new rules and regulations, customs authorities will fully seize such goods, preventing commercial exploitation of duty-free privileges.

These measures are aimed at promoting tourism while keeping a close eye on commercial imports, ensuring that duty-free facilities are not misused.

Temporary Import for Tourists

Under the new rules, tourists can bring vehicles by giving a Carnet de Passage or a bank guarantee. This allows the vehicle to be temporarily imported without paying customs duty. On entry, the tourist must submit a declaration confirming that the vehicle will not be sold or transferred during the stay in Pakistan.

A vehicle can stay in the country for up to three months, with the possibility of an additional three-month extension, provided a valid carnet or bank guarantee is submitted.

This rule primarily benefits wealthy travellers, such as Middle Eastern royalty, who bring high-end vehicles for hunting trips. However, overland tourists entering Pakistan by road will also find this facility beneficial.