Bulletproof cars: ECC clears way for duty-free import

MUSHTAQ GHUMMAN

ISLAMABAD: The government has decided, in principle, to allow duty-free import of raw materials used in bulletproof vehicles, meant for public figures, facing life threats from terrorists, sources told Business Recorder.

The decision was taken by the Economic Coordination Committee (ECC) of the Cabinet in its meeting on November 11, 2011, which was presided over by Finance Minister Dr Abdul Hafeez Shakih.

A committee was constituted comprising Chairman of Federal Board of Revenue (FBR) as convener and Secretaries of Commerce and Interior to fine-tune the proposal prepared by the Ministry of Interior.

The ECC was informed that the Prime Minister had constituted a committee to deliberate, and frame policy proposals, for duty-free/concessional import of armour-protected vehicles.

In pursuance of the decision, the committee in its meeting on May 4, 2011 had reviewed the entire regulatory regime, including tariff concessions and import policy restrictions/relaxations governing import of bulletproof vehicles, and noted as follows; (i) vehicles with security features and bulletproof vehicles are out of the normal ad- alorem assessment regime under SRO 1121(1)/2007 of November 17, 2007. The value of the bulletproof vehicles, which is two to three times higher than the standard vehicles, is assessed under import value of standard vehicles with only nominal value-addition on account of security features in terms of SRO; (ii) in terms of Import Policy Order (IPO), 2009, no age restriction is applicable on import of old and used bulletproof vehicle; and (iii) the factor of depreciation in terms of Customs General Order (CGO) 14/2005, read with CGO 2/ 2011, further reduces the cost of duty/taxes on import of bulletproof vehicles. Depreciation in the assessable value of the used/secondhand vehicles is available up to 60 percent.

The ECC was further informed that considering the concessions already available on the import of armoured vehicles, the committee was of the view that if complete exemption of duty is allowed, it would render armoured vehicles cheaper than their comparable models of normal vehicles.

Reviewing the entire security situation in the country, the committee made the following recommendations: (i) the additional amount of customs duty charged on account of 10 percent enhanced value as per SRO 1121(1) 2007 may be waived on the import of armoured vehicles and the same would be assessed as duty and taxes applicable on the normal vehicles; (ii) the reference of KP Chief Minister, forwarded by the Prime Minister's Secretariat (Public) was also considered and agreed that it may also be treated at par with the recommendations; and (iii) investment in new technology for local armouring may be encouraged.

KP Chief Minister Ameer Haider Khan Hoti, in a letter to Prime Minister Yousaf Raza Gilani, had highlighted two distinct cases.

According to him, Iftikhar Hussain, KP information minister, is one of the prime targets of terrorists. His only son Arshad Hussain was killed, and the tragedy was followed by a suicide attack on the mourners in his native village.

He KP Chief Minister further stated that provincial minister Bashir Ahmad Bilour had been targeted on four different occasions.

Thr KP Chief Minister had sought permission to import duty-free import of three bulletproof (B-7) vehicles for himself and two of his colleagues.

The ECC had allowed the Chief Minister and his colleagues to import duty-free bulletproof vehicles.