The Federal Board of Revenue (FBR) has announced exemptions on duties and taxes for the import of vehicles by China Overseas Ports Holding Company Limited (COPHCL) and its operating companies involved in the construction, development, and operations of Gwadar Port and the Gwadar Free Zone area.
The exemptions are part of a regulatory framework introduced under the “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,” as outlined in SRO.82(I)/2025 issued on Monday.
Under the new rules, eligible importers must provide details of vehicles intended for use in the construction, development, and operations of Gwadar Port and the Free Zone area. These details will be submitted to the Gwadar Port Authority or an authorized officer, who will assess the actual requirements of the importer based on the nature of their activities. The assessment will be conducted in line with the scope defined under PCT Code 9917(3)(iii) of the Pakistan Customs Tariff.
The regulatory framework also accounts for vehicles imported prior to the issuance of these rules, allowing for their regularization based on their bonafide use. For operational purposes, the rules permit the import of a maximum of two motor cars (up to 1600cc), three 4×4 pick-ups, and coaster/bus vehicles for workers, as determined by the Gwadar Port Authority.
To avail the exemptions, eligible importers must submit a Declaration Form signed by the company’s CEO and certified by the Chairman of the Gwadar Port Authority. The certification will confirm that the imported vehicles are genuine and necessary for the construction, development, and operations of Gwadar Port and the Free Zone area. The vehicles must also comply with the quotas determined by the Authority.
The vehicles imported under these rules cannot be sold or disposed of without prior approval from the FBR. If a vehicle is sold or disposed of within ten years of its importation without FBR approval, it will be subject to statutory duties and taxes applicable at the time of import. However, if the vehicle is sold or disposed of after ten years, it will be subject to 50 percent of the duties and taxes applicable at the time of import.
