Old, used auto parts: import subject to strict controls: FBR

Federal Board of Revenue (FBR) has claimed that import of old and used auto parts is subject to strict procedures and controls with remote chances of re-assembly of old and used auto parts into vehicles. A meeting of the Senate Standing Committee on Finance has been informed in response to a question about the involvement of some elements/ groups in import of auto parts in the shape of scrap from Japan which are later on rejoined in the shape of cars.
The meeting was told that the tax authorities claimed that it is evident that the import of old and used auto parts is subject to strict procedures and controls due to which no case of vehicles made from old parts has been reported. "In any case chances of re-assembly of old and used auto parts into vehicles are remote, since the excise and taxation departments do not register any vehicle without confirmation of import status of having been imported as vehicle from Pakistan customs," the FBR added. The tax authorities further stated that import of old and used auto parts (including serviceable auto parts imported as steel scrap) has been banned since 2016 and the customs department is fully vigilant to thwart any attempt of importing old and used auto parts in the shape of scrap.
Similarly, import of chassis of used automotive vehicles cut into pieces, whether or not described as steel scrap, is also banned for import into the country. Additionally, to prevent the chances of mis-declaration, a comprehensive special procedure for examination of import of used auto parts has been prescribed. Under the stipulated procedure all consignments of old and used auto parts are subjected to 100 percent examination and such consignments are de-stuffed only at the specified places of port.
While in order to discourage import of old and used auto parts, contraventions are devised against such imports and are forwarded to the adjudicating authorities for adjudication in terms of provisions of SRO 2009. The adjudicating officers confiscate the old and used auto parts and a minimum fine of 20% of value of such goods is imposed, in lieu of confiscation, which is over and above the customs duties, other taxes and penalties imposed under relevant law.