Import of used cars jumped to 34,000 in first five month of FY-17-18

As per the new conditions, remittance for payment of duties and taxes on car imports should originate from the account of Pakistani national sending the vehicle from abroad under either personal baggage or gift scheme.

The import of used cars has jumped considerably in first five months of fiscal year 2017-18 (5MFY18) due to improving macros and better law and order situation.
In 5MFY18, the imports of used cars clocked in at 34,000 units, which were higher than expectation given that an estimated 55,000 units of used car were imported in entire FY17. The used cars imports gained momentum in 5MFY18 with average monthly imports touching 6,800 units as compared to around 4,600 units on monthly basis in FY17.
According to a report of Topline securities, the used car are being imported via three schemes in Pakistan including transfer of residence, gift scheme and personal baggage, which were put in place to facilitate overseas Pakistanis. According to industry sources, most of these cars are being brought into Pakistan under transfer of residence scheme and the other two schemes are rarely utilised for this purpose. Value of used car imports in FY17 was estimated to be between US$500-750mn.
To control rising import bill, the government notified changes in regulatory duty and import procedures. In a total list of 731 non-essential import items, 330 new items were notified while remaining items were subject to higher regulatory duty in the range of 5% to 30%. This also included regulatory duties on automobiles.
The government in this regard also made changes in the import procedure of used car and imposed new conditions in October 2017. As per the new conditions, remittance for payment of duties and taxes on car imports should originate from the account of Pakistani national sending the vehicle from abroad under either personal baggage or gift scheme. This remittance should either be received in the account of the Pakistani national sending the car from abroad or in case his account is non-existent/non-operative, in the account of his family member as defined in import policy order.
This policy at the time was not extended to transfer of residence scheme in order to facilitate importers to clear backlog of stranded vehicles at ports as large number of orders were already placed by Pakistani auto importers in Japan (it takes around 40 days for used cars to arrive in Pakistan from Japan). However, the government subsequently on Dec 4th, 2017 notified changes to import order policy and removed relaxation on imports of used car under transfer of residence scheme and made the above procedure applicable on this as well. According to commerce secretary statement, the government is following policy of discouraging imports of second-hand cars to curtail trade deficit.
The Custom’s department via statement issued on Jan 17, 2018 suggested it’s board members to temporarily relax the condition of involvement of bank accounts of Pakistani national or his family member as around 6k units are lying at the ports for clearance. They have suggested it’s board member to allow the imports of cars standing at port on production of bank encashment certificate only.
Motorcycles’ production witnesses growth
 Motorcycles production in the country during the first five months of current financial year witnessed about 22.34 percent increase as compared the production of corresponding period of last year.
During the period from July-November, 2017-18, 942,434 motorcycles were produced as compared the assembling of 770,339 motorcycles of same period last year, according to the computation of quantum index numbers of large scale manufacturing industries released by Pakistan Bureau of Statistics.
On the monthly basis, local motorcycles assembling also grew by 16.87 percent in month of November as compared the corresponding month of last year, it added. In November, 2017 country produced about 250,564 motorcycles as against the production of 214,387 motorcycles of same month of last year, the data added.
Meanwhile, local tractors assembling during last five months also grew by 64.05 percent and it was recorded at 27,706 tractors compared the production of 16,889 tractors of same period last year. Tractors assembling witnessed 9.73 percent growth in month of November, 2017 as compared the corresponding month of last year. About 5,955 tractors produced during the period under review as compared the production of 5,427 tractors of same month last year, it added.
The domestic trucks production increased by 24.41 percent in five months as about 3,889 and trucks were assembled as compared 3,126 buses of same period last year, it added.
However, the trucks production during month of November, 2017 reduced by 2.96 percent as 656 trucks were assembled as compared to 676 trucks of same month last year, the data revealed.
During the period from July-November, 375 buses were produced as compared the production of 563 buses of corresponding period last year, whereas buses assembling in month of November was recorded at 19 as against 71 buses during same month of last year.

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South Punjab News : Import of used cars jumped to 34,000 in first five month of FY-17-18
Import of used cars jumped to 34,000 in first five month of FY-17-18
As per the new conditions, remittance for payment of duties and taxes on car imports should originate from the account of Pakistani national sending the vehicle from abroad under either personal baggage or gift scheme.
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South Punjab News
http://www.southpunjabnews.com/2018/01/import-of-used-cars-jumped-to-34000-in.html
http://www.southpunjabnews.com/
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