As the local auto manufacturers keep increasing the prices of their cars without adding significant safety and comfort features, people become more inclined towards imported Japanese cars. However, as the import bill rises, so does the gap between what Pakistan is importing as compared to exporting. This is called Current Account Deficit (CAD).
To narrow this gap, successive governments have implemented policies to restrict the import of Japanese cars. To do this, governments increase customs and regulatory duties on such vehicles. On top of this, consumers need to pay the dealers a handsome amount for their services. All of this comes together in the form of a high price tag for these cars, which in Japan cost a fraction of what they are being sold for in Pakistan.
Did you know you don’t have to go through dealers and agencies to import a car from Japan? You can do it all by yourself, which can save you a significant amount. Would you like to know how to import a car from Japan to Pakistan under different schemes?
Let’s dive in.
Schemes to Import a Car in Pakistan
1. Personal Baggage
Like the name itself, it means importing goods as a personal item. You will need the following documents as per section 79 of Customs Act, 1969:
- Purchase receipt
- Bill of lading (Not more than 120 days from date of arrival in Pakistan)
- Attested photocopy of passport or CNIC
2. Gift Scheme
If you want to gift an imported item, this is your best option. You will need the following documents as per section 79 of Customs Act, 1969:
- NIC of the donee
- Purchase receipt
- Bill of Lading (having name and address of consignee)
- Attested photocopy of passport or CNIC
3. Transfer of residence
If a person moves to Pakistan from Japan, this scheme works for them. You will need the following documents as per section 79 of Customs Act, 1969:
- Purchase receipt
- Bill of lading (Not more than 120 days from date of arrival in Pakistan)
- Attested photocopy of passport or CNIC
Once you know the scheme that works for you, things get easier as the tax rates and process of importing a car from Japan are the same for all three schemes. Here is the structure of duties and tax under the three schemes mentioned above for importing old and used vehicles of Asian makes from Japan to Pakistan.
| S. No | Vehicles of Asian makes meant for transportation of persons | Duty and Taxes in USD or equivalent amount in PKR |
| 01. | Up to 800 cc | $4,800 |
| 02. | 801cc to 1000cc | $6,000 |
| 03. | 1001 cc to 1300cc | $13,200 |
| 04. | 1301cc to 1500cc | $18,590 |
| 05. | 1501cc to 1600cc | $22,550 |
| 06. | 1601cc to 1800cc (excluding Jeeps) | $27,940 |
Conditions for importing a car for Japan
There are some conditions importers are required to follow in order to import a car from Japan. Have a look at the conditions of import in the image below.
Now let’s skip to the import process of a car from Japan to Pakistan in 2022.
Steps to Import a Car from Japan to Pakistan:
Step 1: The first step is to choose the car from an online auction in Japan. There are many online auction houses in Japan, and you can easily find them on the internet. Sign up to the website and find the car in the online inventory.
Step 2: Once you find the vehicle of your interest, you can see its details, including car model, make year, engine number, chassis number, color, manufacturer, etc.
The auction sheet listed below the car details will give you a detailed report of the car’s present condition. Make sure to know the auction sheet before placing a bid. It will tell you everything about a car’s physical condition.
It’s in Japanese, so you may need assistance reading it. Learn how to read the Auction sheet of a car.
Step 3: Once you decide to bid on a car, you need to deposit $1000 upfront. This is a security deposit and refundable in case you lose the bid. You can see the breakdown of the price of the car, including the base price, taxes, and freight charges on the website.
Step 4: On the auction date, you will be notified by the auction conducting company about your bid status. In case you have won, you will be obliged to pay the remaining amount. At this point, you have the breakdown of the car’s total price, so you know what you are paying for.
Note: Under SRO 52(1)/2019, you must pay for the car in foreign currency.
Step 5: Upon successful payment transfer, the company will transfer the ownership to the bidder by sending the following documents:
- Copies of original Bill of Lading
- Original Export certificate in Japanese
- Translated Export certificate in English
- Original Invoice of the car
Step 6: Now you have to wait till your car arrives at Karachi port. Depending upon where you live in Pakistan, it will take some more time to reach the dry port nearest you.
Step 7: Once the car arrives, the customs officer will handle the clearance processes which includes port charges, passport fees and clearing the vehicle, etc.
What if you want to import a car other than Japan?
If you want to import a personal car from a country other than Japan? Or do you want to import a car from a country other than Japan? The process is similar to the import of any conventional goods. If you are moving to Pakistan and you want to import your personal car, you classify under the Transfer of Residence scheme. If you want to import a car while residing in Pakistan, you fall under the Personal baggage scheme. The required documents are similar for both of these schemes.
You are required to submit the following documents to clear your car from the customs officials:
- Goods Declaration
- Export Certificate
- Purchase receipt of the vehicle
- Bill of lading dated not later than 120 days from date of arrival in Pakistan of the applicant Attested photocopy of passport or Pakistan Origin Card (Original will be required at the time of clearance)
Before you try to import your car make sure you fulfill the requirements for your respective schemes. For transfer of residence, a minimum stay of 700 days outside Pakistan is required during the last three years abroad.
While for the personal baggage scheme, a minimum stay of 180 days outside Pakistan is required in the last seven months preceding the date of application. Irrespective of the import scheme, you need to pay tax to customs officials to get your vehicle cleared.
Why you should import a car yourself
Many are dependent on car dealers and other such agents to import cars from Japan. This is due to either not knowing or not knowing enough about how to import a car yourself. While convenient, it costs a lot of money, which can be saved.
Hopefully, now you know what documents you need, what the process is and how much time it takes and everything there is to know about importing a car from Japan to Pakistan. So why not import yourself and save money.
Let us know in the comments section below if you find this guide useful. Stay tuned for more informative blogs!
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