Govt Introduces Gift Scheme For Overseas Pakistanis for Cars

The federal government has removed a major barrier to car imports for Pakistanis abroad. The Overseas Pakistanis can import cars to Pakistan without a gift scheme, relocation, o r personal belongings without providing an International Bank Account Number o r IBAN number. The government has removed the International Bank Account Number IBAN requirement, according to a Commerce Ministry notification. OSPs can now import a car under the Gift Scheme, Accommodation and Personal Transfer without giving an IBAN number.

Earlier, the government had considered it necessary to mention IBAN in remittances through OSPs. This new SRO made car imports more difficult for OSPs. According to reports, imported cars were stuck at the port for months after the order.

Later, the Customs Department noted a flaw in the new SRO. On September 10, 2020, Customs wrote to the FBR that only 77 countries were using the IBAN system. "While many countries, including the United States, China, Japan, Canada, Australia, etc., are not using the system," the letter said.

Customs requested the FBR to issue policy guidelines for the approval of vehicles where duties / taxes are coming from non-IBAN countries.

In its reply to Customs on November 2, 2020, the Ministry of Commerce stated that the Procedure Certification Certificate proposed by the State Bank of Pakistan would be acceptable. "If it confirms the sender's name and personal bank account number," the ministry said.

The notification further said that the PRC should also mention the name of the bank from which remittances are coming to Pakistan.

Although this is an issue for OSPs and their families, the All Pakistan Motor Dealers Association wrote a letter to Commerce and Commerce Minister Razzaq Dawood. This is interesting because the government has banned the commercial import of used cars. Therefore, dealers should not worry about this issue.

The association wrote in its letter that the government has introduced a new IBN requirement for approval of vehicles imported by OSPs under the Gift, TR and Goods Scheme.
"This new need has caused many difficulties for Pakistanis abroad and their families," the letter said.