Mohsin Siddiqui (Chief Reporter)

The government has made amendments to the Import Policy Order (IPO) 2022, increasing the mileage limit for defining new imported cars/vehicles to 2,000 kilometers instead of the previous 500 kilometers. This alteration aims to prevent Customs detentions at ports,

The Economic Coordination Committee (ECC) of the Cabinet was briefed on February 14, 2024, regarding this development. The Ministry of Commerce has been receiving requests from importers for a one-time condonation of extra mileage on “new vehicles.”

The issue arises when vehicle consignments exceed the stipulated 500-kilometer limit, as outlined in paragraph 2(h) of the Import Policy Order 2022, prior to importation.

According to paragraph 2(h) of the IPO 2022, a “New Vehicle” refers to a vehicle manufactured within the 12 months preceding the importation date and not registered or used beyond 500 kilometers.

The Cabinet Committee for Relaxation of Import/Export-related Prohibitions, established under notification No 1(13)/2018- AC (TP) on October 11, 2022, has been deliberating on cases of “One-Time Condonation of Extra Mileage.” It has decided to permit the one-time release of such vehicles by relaxing the provisions of paragraph 2(h) of the IPO 2022, utilizing the powers granted in Paragraph 20 of the IPO 2022.

Importers have been inadvertently violating paragraph 2(b) of the IPO 2022 due to road travel of vehicles exceeding 500 kilometers from factory premises/warehouses to ports. To address this issue, the Commerce Ministry proposed amending paragraph 2(h) of the Import Policy Order 2022 to redefine “new vehicles” as those driven up to 2,000 kilometers.

Following deliberation, the ECC approved the Ministry of Commerce’s proposal, and this decision has received endorsement from the Federal Cabinet.