Pakistan’s Federal Board of Revenue has taken a major step to make imported cars cheaper and quicker to clear at ports. A fresh customs notification removes the requirement for authorised local agents to verify vehicle values, shifting the process directly to manufacturer-certified rates. Importers see this as a win for ease of doing business, transparency, and reduced customs delays.

What Changed and Why It Matters

For nearly two decades, local agents appointed by car manufacturers issued valuation certificates that had to be submitted before customs could assess duties. Importers paid fees for these certificates and often dealt with long waits and unclear practices. Industry stakeholders repeatedly pushed for reforms to bring Pakistan closer to global customs norms.

Under Customs General Order No. 2 of 2026, the FBR has amended the earlier order from 2005. The change means that customs will now accept the FOB value at the time of manufacture directly from the vehicle manufacturer. This eliminates the role of intermediaries and reduces interaction between importers and third parties.

Officials in the customs sector describe the move as part of a broader push toward transparent trade, streamlined valuation systems, and reduced discretionary customs practices. It also aligns Pakistan’s procedures with international automotive import standards, a point often raised by trade bodies when discussing tariff barriers and regulatory costs.

Benefits for Car Importers and the Automotive Market

Vehicle importers can now expect lower overall import expenses, faster documentation processing, and reduced friction at ports. The automotive import community believes the decision will encourage legal channels, reduce grey-market valuations, and support fairer customs treatment across vehicle categories, including hybrid and electric cars, which have seen increasing demand in Pakistan.

This update arrives at a time when interest in imported SUVs, hatchbacks, EVs, and luxury sedans is rising due to competitive pricing and growing consumer awareness. Platforms such as Car Advisers continue to highlight how regulatory shifts affect vehicle pricing trends, consumer buying decisions, and auto market confidence.

Updated Import Valuation Workflow

Step	Previous Process	New Process 2026
Valuation Certificate	Issued by authorised local agents	Certified directly by manufacturer
Fee Paid by Importer	Yes	Not required
Customs Acceptance	Agent certificate validated	FOB manufacturer value accepted
Time and Friction	Higher	Reduced
Transparency	Criticised by importers	Improved alignment with global norms

Key Takeaways for Importers

• No more valuation certificates from local authorised agents
• Manufacturer-certified FOB value accepted directly
• Lower import-related costs
• Faster clearance and reduced documentation
• Better transparency and closer to global trade standards

Frequently Asked Questions

How will this policy affect overall vehicle prices?

Importers expect reduced valuation costs that can influence end pricing, especially for popular imported hatchbacks, crossovers, and EVs.

Is the change applicable to all vehicle categories?

Yes, it applies across imported motor vehicles, including EVs, hybrids, and conventional fuel vehicles.

Will customs clearance become faster?

Removing intermediaries is expected to shorten valuation and documentation timeframes.

Why did importers oppose the old system?

It added cost and did not significantly improve transparency, according to industry stakeholders.

Will this boost the automotive import market?

Experts believe it supports smoother imports and builds buyer confidence in imported vehicle segments.

Final Thoughts

FBR’s decision is a positive development for the automotive import ecosystem. By reducing costs, minimising paperwork, and removing intermediaries, Pakistan moves toward a more competitive import environment. With rising interest in imported EVs, SUVs, and premium sedans, such policy shifts can influence pricing trends and consumer confidence in the coming months.

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