Govt rejects Commerce Division’s plea seeking one time relaxation in favour of imported vintage cars

Sohail Iqbal Bhatti

ISLAMABAD – Federal cabinet has rejected Commerce Division’s summary seeking one time relaxation in prohibition in favour of already imported vintage cars including Rolls Royce, Bentley, Ford Mustang and Chevrolet under Import Policy Order (IPO), 2020.

Earlier, expansive cars were imported from different foreign countries under the SRO of Federal Board of Revenue (FBR) dated 3rd July, 2018. However, these already imported vintage cars are stuck at Karachi Ports because of a ban on the import of 50 years old vintage cars. And, the commerce division on the advice of Prime Minister tabled a summary seeking one time relaxation in prohibition of import of vintage cars.

Available documents disclosed that federal cabinet had not approved the one time relaxation in prohibition of import of vintage cars which were sought by the commerce division.

As per details, the commerce division informed that import of second hand /used vehicles of chapter 87 was not allowed except those specifically exempted therein. As such, resident of Pakistan could not import used vehicles including vintage/classic cars.

The Federal Board of Revenue (FBR) had issued SRO 833(1)/2018 on 3rd July 2018 and levied a cumulative duty of $5000 per unit on import of vintage cars/jeeps which were over fifty years old. However, the said SRO could not be given effect because of ban on import of vintage cars in IPO.

To make a corresponding amendments in the IPO, a summary for the federal cabinet’s economic coordination committee (ECC) was moved by Commerce Division in January 2019 and sought permission for import of vintage cars. However, the said proposal was not approved.

Meanwhile, some of the cars imported on the basis of said FBR’s SRO arrived in the country and the importers of these countries approached different high courts with the plea that they had imported cars on the strength of aforesaid SRO and were unaware of any ban in IPO, therefore their car might be released. Some courts allowed release of imported cars while others declined petitions on the grounds that the said SRO was not an SRO issued under section 3 (1) of Imports and Exports (Control) Act, 1950 and it (SRO) does not operate to amend the conditions of IPO.

Keeping in view the divergent interpretations by various benches, the Chief Justice Sindh High Court constituted a larger bench to decide the question of importability of vintage cars in the light of said SRO and IPO in vogue. And, this larger bench in a judgment dated 10-09-2021 agreed with Ministry of Commerce’s point of view visa-a-vis import of vintage cars i-e their import cannot be allowed unless am appropriate amendment was made in the IPO in terms of section 3(1) of the Imports and Exports (Control) Act 1950. However the court by a majority of two to one judges directed the federal government to consider these petitions as applications under para-21 of IPO for grant of one-time relaxation/condonation of prohibition in favour of already imported vintage cars and decide the case within 10 days.  

According to sources, besides the petitioners, there were others who had imported vintage cars and their consignments were stuck up at various ports because of a ban in the IPO. 

On the strength of the judgment of honorable Sindh High Court, some petitioners, whose petitions were pending adjudication before different high courts, had also approached Ministry of Commerce for grant of one time relaxation in favour of their already imported vintage cars. However, it was likely that if one such application was accepted, then similar other petitioners/applicants would approach the ministry for grant of one time relaxation.

It is pertinent to mention that under Para -21 of the Import Policy Order (IPO), 2020, the federal government was empowered to allow imports in relaxation of any prohibition or restriction as contained in the IPO.