ISLAMABAD: The Customs General Order (CGO) issued by the Federal Board of Revenue (FBR) has worked effectively in checking the import of auto parts in the shape of scrap from Japan which are later on rejoined in the shape of cars.
The said CGO has prescribed a special procedure for examination of such goods as well as restrictions to obviate chances of mis-declaration in import of old and used auto parts in the shape of scrap.
In light of the stipulated procedure, consignments of old and used auto parts can only be de-stuffed at specified places of the port and are subject to 100% examination by an officer not below the rank of assistant / deputy collector of Customs.
A source told Customs Today that with an effective implementation of the CGO it was evident that the import of old and used auto parts was subject to strict controls and comprehensive procedures due to which no case of vehicles made from old and used imported auto parts had been reported. Since no such case has been reported, therefore, no arrests have been made on this account.
The source elaborated that the import of old and used auto parts (including serviceable auto parts imported as steel scrap) was banned in terms of IPO, 2016. Similarly, import of chassis of used auto motive vehicles cut into pieces whether or not described as steel scrap is also banned for import into the country under the IPO.
The source said that in order to discourage import of old and used auto parts, contravention cases were made out against all such imports and were forwarded to the adjudicating authorities for adjudication in terms of provisions of SRO 499(1)/2009. Whereby a fine of 20% of value of such consignments is imposed in lieu of confiscation which is over and above customs duties, other taxes and penalties imposed under relevant law.