Massive fraud unearthed in old cars' import

Massive fraud has reportedly been unearthed in the import of reconditioned vehicles by influential importers who are abusing used car import schemes announced in Trade Policy limited to facilitate overseas Pakistanis. According to official documents and anecdotal evidence the latest compiled information on used car imports pertaining to various shipments in Karachi reveal some shocking facts.
Going through the data as they are all containerised shipments, some alarming information has come to light with many vehicles more than 5 year old of which some are as old as 7 to 10 years.
The details of reconditioned used CBU arrivals in containers are as follows: Toyota Belta 17, Toyota Corolla 236, Toyota Hiace 12, Toyota Fielder 36, Toyota Ractic 3, Toyota Passo 44, Toyota Platz 4, Toyota Probox 7, Toyota Premio 40 Toyota Porte 2 Toyota Vitz 180, Toyota Prado 9, Toyota Land Cruiser SW 1, Toyota Wish 8, Toyota Axio 4, Toyota Succeed 1, Toyota Rav4 1, Toyota old cars 24, Daihatsu Mira 20, Daihatsu Terios kid 6, Mercedes c180 1, Mercedes Benz 1, Suzuki Alto 16, Suzuki Every 16, Suzuki Kei 15, Suzuki Servo 3, Suzuki Swift 1, Suzuki wagon R 3, Nissan Truck 14, Nissan Tida 1, Nissan Clipper 1, Nissan March 1, Nissan Clipper 1, Nissan pickup 4x4 1, Mazda Carol 1, Mazda Truck 32, Honda Civic 1, Hino truck 5, Korean cars 111, Ford Ranger d/c 240, others (not recognised) 368.
According to Import General Manifest (IGM) 8700, available at the website of the Federal Board of Revenue (FBR), used Toyota Corolla are of models 1995 with bill of lading dated January 24, 2011 have reached Karachi. Besides, Korean used cars Matiz of 1998 model have landed at Karachi and are awaiting clearance.
"Who is the owner of these cars? How were these cars booked and reached Karachi as neither the used car import policy nor regular import policy allows these models to enter Pakistan?" commented a stakeholder. Sources said the Commerce Ministry and the Cabinet Division have also locked horns over a federal Cabinet decision, which allows import of all types of five-year old vehicles.
The Economic Co-ordination Committee (ECC) of the Cabinet had allowed import of vehicles in use for five years instead of three years on a summary of the Ministry of Industries and Production (MoI&P) and constituted a committee to formulate a new entrants policy; this is in addition to the proposal to allow 5-year old buses, trucks, tractors and rickshaws.
Commerce Secretary Zafar Mahmood is the convenor of the committee, which prepared the summary for the ECC. The committee's recommendations, including an increase in depreciation from one percent to two percent have not yet been considered by the ECC.
On February 1, 2011, Commerce Ministry's summary this was included in the approved agenda but was deferred without reason. The Commerce Ministry, sources said, maintains that the Cabinet Division's minutes are not in accordance with the decision of the ECC held on November 4, 2010. "The Commerce Ministry and the Cabinet Division are engaged in an exchange of letters to lend clarity to the Cabinet's ratification of the ECC decision of November 4, 2010," sources continued.
On Thursday, when Commerce Secretary Zafar Mahmood was asked when the government would issue the SRO on enhancement of age limit in case of imported cars from three to five years, he did not give a clear answer. Insiders however maintain that the Commerce Ministry is now opposing the import of five-year old buses, trucks, tractors and motorcycles, citing lack of foreign exchange as the reason. Not to allow import of five-year old used cars that are not above 1300 cc is also being considered so as to protect the local industry.