Remittance certificates: Customs directed to allow clearance of imported vehicles

KARACHI: Federal Board of Revenue (FBR) has directed the Pakistan Customs to allow the clearance of imported vehicles against remittance certificates. According to an official announcement, the Model Customs Collectorate (MCC), Appraisement & Facilitation (East) has written a letter to the revenue division, seeking clarification regarding the clearance of vehicles imported under personal baggage, transfer of residence and gift schemes against the proceed realisation certificate (PRC)/ Remittance Certificate (RC).

In response, the matter has been examined in consultation with the ministry of commerce. As a result, it is clarified that for the purposes of import clearance of vehicles imported under personal baggage, transfer of residence and gift schemes, the PRC/ RC, as suggested by the State Bank of Pakistan (SBP), shall be acceptable, if it, inter alia, confirms the name and personal bank account number of the sender of remittances and the name of the bank from where remittance was originated.

Needless to mention, in 2019, the government has issued SRO 52(I)/2019, restraining the clearance of all vehicles in new/used condition to be imported under transfer of residence, personal baggage or under gift scheme unless the duty and taxes shall be paid in foreign exchange arranged by Pakistan Nationals themselves or local recipient supported by bank encashment certificates showing the conversion of foreign remittance to local currency, as under.

The remittance for payment of duties and taxes shall originate from the Pakistani national sending the vehicle from abroad, and The remittance shall either be received in the account of the Pakistani national sending the vehicle from abroad or, in case, his account to nonexistent inoperative, in the account of his Family".

Copyright Business Recorder, 2020