Korean Used Cars Exporter
For someone who is planning to import Korean used cars into Pakistan, he should familiarize himself with the complete rules and regulation of Pakistan Board of Revenue., especially if someone is a Korean used cars exporter or importer in Pakistan. There may be some particular rules and duties depending upon the nationality of importer, the characteristics of the car or the reason why that used car is being imported. All these used cars fall under two categories, on which Pakistan’s duty system is based. One is the Special Regime Vehicle and the other is Normal Regime Vehicles. It is necessary to find which regime the used car you want to import from Korea lies in order to calculate its equivalent custom duty.
Special Regime Vehicles
A vehicle lies under the Special Regime category if it is a used car and is imported due to one of the following reasons:
- Transfer of residence
- Personal Baggage
Moreover, one can only import a vehicle under the special regime once every two years. If the chassis of the car has been found tempered or with the false documentations, that used car cannot be imported from Korea or any other country. Permissible used vehicle include buses, tractors, motorcycle, 4X4s, pickups, transport, bulldozers and used cars for public transport, trucks and pickups. The Korean used cars must be less than 3 years of age. If the car is intended as gift or transfer of residence, then the importer should be one living outside Pakistan for at least two years prior to the date of importation. A Korean used cars exported to Pakistan will only be allowed if it is done for a parent, a son or a daughter, a spouse or a sibling.
Duties for Special Regime Vehicles
For Korean used cars that falls under the category of special regime, duties are determined on the basis of the principle on engine capacity. In August 2010, duties were decided by the government were in range of US$ 4,000 – US$ 12,000, with used cars with engine capacity of 800 cc deserving the former value and those with engines between 1601 and 1800 cc deserving the last. While the age and make of the used vehicle do not directly affect the custom duty, there is some reduction on the basis of depreciation, of 2 percent for every month of the car’s age, up to the highest of 50%. These months are counted from the initial date of the registration of Korean used cars to the date of importation into Pakistan.
Normal Regime Vehicles
For vehicles that do not fall under the category of special regime vehicles, their respective duties are determined by separate set of criteria. All these Korean used cars under normal regime category are subjected to duties based on the car’s engine capacity. The minimum duty for a vehicle with engine capacity of 800CC is 50% of the vehicles assessed value, plus a federal excise tax and a sales tax. The maximum duty on non-Jeep of 1801 cc or larger engine capacity, custom duty is 90% of the assessed value of the vehicle, plus federal excise tax and sales tax.
If you are a Korean used cars exporter, then you should be aware of all such facts, otherwise importing a Korean used cars in Pakistan may lead you to face certain problems and some of these problems may not have a solution in Pakistan.