Used car importers get one-time relief

ISLAMABAD: The federal government has approved a one-time relaxation to facilitate the clearance of thousands of imported used vehicles that have been held up at Karachi port following the implementation of new inspection requirements.

The Ministry of Commerce has exempted certain used vehicles imported under the Gift, Personal Baggage, and Transfer of Residence (TR) schemes from specific conformity assessment requirements.

The relief applies to vehicles covered by Master Bill of Lading (MBL) dated between January 16 and March 9, 2026, which were delayed after the government introduced mandatory pre-shipment inspection (PSI) requirements.

Under the new rules introduced in January 2026, all used vehicles imported from Japan were required to obtain a Pre-Shipment Inspection (PSI) certificate before export. The certificate confirms that the vehicle has been inspected and meets safety and quality standards.

However, the sudden implementation of the regulation created difficulties for many importers and overseas Pakistanis who had already purchased vehicles. Many cars had either already been shipped from Japan, were in transit, or had reached Pakistani ports without the required PSI certificate, resulting in customs clearance delays.

To address the issue, the Ministry of Commerce has granted a one-time exemption for eligible vehicles. The relaxation applies only to vehicles imported under the Gift, Personal Baggage, or Transfer of Residence schemes, provided their Master Bill of Lading is dated between January 16 and March 9, 2026.

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According to industry sources, vehicles that do not have a PSI certificate may still be cleared on the basis of their original Japanese auction sheets. However, customs authorities will only clear vehicles found to be in acceptable condition.

The Ministry of Commerce directed the Federal Board of Revenue (FBR) and Customs authorities to ensure that all other applicable provisions and conditions of the Import Policy Order, 2022 are fully complied with before granting clearance.

The notification further states that no vehicle will be cleared if its Japanese auction sheet classifies it as Below Average (Overall Grade 3), Poor Condition (Overall Grade 2), Repaired Accident (Overall Grade R), or Minor Accident Repair (Overall Grade RA), in order to ensure compliance with minimum safety standards.

It also emphasizes that compliance with all other applicable provisions, requirements, and conditions of the Import Policy Order, 2022, as well as other relevant laws and rules, will continue to remain mandatory.