The Federal Board of Revenue has decided to coordinate with the Federal Investigation Agency to prevent the “misuse” of the recently reversed facility of temporary import of duty-free vehicles for overseas Pakistanis and foreigners, Business Recorder reported on Tuesday.

The board announced the decision in a notification pertaining to the “misuse” of carnet de-passage – a document that permits the import of vehicles without duty or temporary importation of vehicles.

“Under the new rules, the definition of the ‘tourist’ has been updated and new provisions have been incorporated to strictly monitor the carnet-related information through Pakistan Customs Computerized System and by keeping close liaison with Federal Investigation Agency,” it said.

The statement added that the passport of the tourist would be flagged with the carnet documents for proper reconciliation of vehicles imported under the carnet facility.

Endorsement relating to export

When a vehicle imported is later exported, the customs stations officer in charge exit shall make a stamped endorsement on the passport of the importer of that vehicle accordingly against the endorsement relating to its import and retention in Pakistan and shall record the export in the Customs Computerized System and communicate it to the FIA.

With such a change, the government has replaced the manual procedures with a computerized system. The plan is to check on the misuse of the facility.

Moreover, the officer-in-charge of the customs station of an entry shall carry out the reconciliation of all vehicles entered through it at the end of each month.

Any vehicles which are outstanding after the expiry of the retention period shall be identified, the FBR said, adding that all necessary steps shall be taken for the recovery of duties and taxes thereon, as well as for the seizure of such vehicles.

Only 900 vehicles – out of the 1,000 that entered Pakistan under the tourist facility – were verified to have left the country over the last five years, according to Dawn. The search for the remaining 100 vehicles that includes bikes was under way.

The facility allowed tourists to bring their vehicles into the country and take them back to their home country.

There are reports that a monthly report will be made to maintain the record.