Ban on importing older cars to affect customs duty collection

KARACHI: The ban imposed by Ministry of Commerce on importing cars more than three years old in December 2012 is going to result in a significant decline of customs duty collection by the Model Customs Collectorate (MCC) Appraisement.
The Collectorate has estimated a decline of 67 percent in the quantity of imported cars to 9600 vehicles in the coming five months (February-June 2013) as compared with 29483 vehicles imported during February-June 2012 under gift, personal baggage and transfer of residence scheme.
Hence, the estimated collection of customs duty would decline by a mammoth 67 percent to Rs3.36 billion during February-June 2013 compared with collection of Rs10.135 billion during February-June 2012.
As far as first seven months of the current fiscal year (July 2012-January 2013) are concerned the customs duty collected by MCC Appraisement stood at Rs11.968 billion against the import of 37768 vehicles.
The Collectorate expects the number of imported cars to be cleared in February to be 4000 as the shipments booked and dispatched earlier than the imposition of ban in December 2012 would be reaching country’s ports in February.
However, after February, an average of 1400 vehicles are expected to reach local ports for clearance for the rest of the fiscal year until and unless there is some other amendment in the import policy order in this regard.

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