FBR Grants Duty and Tax Exemptions on Vehicle Imports for Gwadar Port Operations
The Federal Board of Revenue (FBR) has granted exemptions on duties and taxes for the import of vehicles by China Overseas Ports Holding Company Limited (COPHCL) and its associated operational firms involved in the construction, development, and management of Gwadar Port and the Gwadar Free Zone.
As per SRO.82(I)/2025, issued on Monday, this exemption falls under the Import of Vehicles by Concession Holders and Operating Companies for Construction, Development, and Operations of Gwadar Port and Gwadar Free Zone Area Rules, 2025.
Under this framework, eligible importers must submit details of vehicles intended for import to the relevant authority or an authorized officer. The authority will assess the actual need for these vehicles based on the importer’s activities, in line with PCT Code 9917(3)(iii) of the Pakistan Customs Tariff.
Additionally, previously imported vehicles will also be reviewed to confirm their legitimate use and to determine future import needs.
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Operational Vehicle Allowances
The exemption allows for a specific quota of operational vehicles, including:
- A maximum of two motor cars (up to 1600cc)
- Three 4×4 pick-up trucks
- Coasters or buses for workers, as per the requirements determined by the authority
To avail of this exemption under PCT Code 9917(3)(iii), importers must provide a Declaration Form, signed by the CEO of the importing company, which must then be certified by the Chairman of Gwadar Port Authority. This certification will verify that the imported vehicles are strictly required for Gwadar Port’s construction, development, and operational needs.
Resale and Disposal Conditions
- Vehicles imported under these rules cannot be sold or transferred without prior FBR approval.
- If sold before ten years from the import date, full duties and taxes applicable at the time of import must be paid.
- If sold after ten years, the importer must pay 50% of the original duties and taxes.
This initiative aims to streamline vehicle imports for Gwadar Port’s development while ensuring regulatory oversight on their usage.
