ISLAMABAD: The Federal Board of Revenue (FBR) has officially ended the role of authorized local agents in determining duties and taxes on imported vehicles, including used and old cars, through the issuance of Customs General Order (CGO) No. 2 of 2026.
Under the new rules, the assessment of duties and taxes for European luxury vehicles, particularly brands from Germany, will now be based solely on prices certified by the manufacturers. This change is aimed at curbing under-invoicing practices and streamlining the import process. Importers of Japanese vehicles are not affected by this amendment.
Previously, local agents played a key role in providing assessed values for imported vehicles upon receiving a fee from the importer. However, the updated CGO removes the requirement for certificates from authorized agents. Customs authorities will now rely on the FOB (Free on Board) value of vehicles at the time of manufacture, as certified by the manufacturers themselves.
The FBR’s move amends Customs General Order No. 14 of 2005, eliminating references to authorized agents in paragraphs related to vehicle assessment. With accessible online data and certified manufacturer prices, importers will no longer need to approach agents for vehicle valuation, simplifying the import process and reducing additional costs.
This reform is expected to enhance transparency in the import sector, particularly for high-value European vehicles, and support fair taxation practices across Pakistan.
