Islamabad, Feb 4: The Federal Board of Revenue (FBR) has granted a duty and tax exemption on vehicle imports for China Overseas Ports Holding Company Limited (COPHCL) and its affiliated companies. These companies are involved in the development and operation of Gwadar Port and the Gwadar Free Zone.
This exemption is outlined in the SRO.82(I)/2025, which was issued on Monday, and it establishes a regulatory framework for vehicle imports specifically meant for the construction and operational activities in the region.
According to the new rules, which are titled Import of Vehicles by the Concession Holders and their Operating Companies for Construction, Development, and Operations of Gwadar Port and Gwadar Free Zone Area Rules, 2025, companies can import vehicles solely for their operations related to the Gwadar Port and Free Zone development.
These vehicles must be approved by the designated authorities, who will assess the specific requirements based on the importer’s needs and the activities planned.
Importers must submit details about the vehicles they intend to import to the relevant authority. This process ensures that only those vehicles genuinely required for construction and development are brought into the country. The authority will review both the nature of the importer’s activities and the vehicles they have previously imported to verify their legitimate use under the established regulatory framework.
For operational vehicles, specific guidelines are in place: the importer can bring in up to two motor cars (1600cc or less), three 4×4 pick-up trucks, and workers’ buses or coasters, based on the determined needs. These allowances are carefully defined under the Pakistan Customs Tariff, specifically PCT Code 9917(3)(iii), ensuring they are in line with the scope of activities in the Gwadar region.
To qualify for the exemption, the importer must submit a signed declaration form, which must be certified by the Chairman of the Gwadar Port Authority.
This ensures that the vehicles meet the necessary criteria and are essential for the development and operations of the Gwadar Port and Free Zone Area. Importantly, these vehicles cannot be sold or disposed of without prior approval from the FBR.
If a vehicle is sold or disposed of within ten years of import, the full duties and taxes must be paid. However, vehicles sold after ten years will only incur 50% of the original duties and taxes.
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This exemption provides significant relief for companies working on critical infrastructure in Gwadar, facilitating the region’s development while ensuring strict regulations are followed for the import and use of vehicles.
