FBR abolishes role of local agents in assessing duties, taxes on vehicles' import

• Agents' role eliminated via Customs General Order No 2 of 2026.
• Prices certified by manufacturers to be used to assess duties, taxes.
• Move aimed at overcoming under-invoicing; will facilitate importers.

ISLAMABAD: The Federal Board of Revenue (FBR) has issued Customs General Order (CGO) abolishing the role of authorised local agents in the assessment of duties/taxes on the import of vehicles, including old, used cars, The News reported on Tuesday.

This condition applies to vehicles imported from Europe, especially those from German-based manufacturers. This condition does not apply in the case of importing cars from Japan.

From now onwards, only prices certified by manufacturers will be taken for the purpose of assessment of duties and taxes on the import of old and used vehicles in case of luxurious brands coming from Europe, especially from Germany. This step will help to overcome under-invoicing.

According to the CGO issued by the FBR on Monday stating that the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in Customs General Order No 14 of 2005 dated June 6, 2005, namely in the aforesaid Customs General Order, in paragraph 1- in sub-para (i) and (iii), the words on their authorised local agents shall be omitted; and ii) in sub-para (ii), the words “or their authorised agents” shall be omitted. No such certificate would be required from the authorised local agents.

The FOB value of a motor vehicle at the time of its manufacture, as certified by the manufacturer, would be taken by the customs for assessment of duties and taxes.

The role of local agents of big old and used vehicles has been eliminated through the issuance of Customs General Order No 2 of 2026. The FBR has amended Customs General Order No 14 of 2005 dated June 6, 2005 on the assessment of duties and taxes on the import of old and used vehicles.

After issuance of this new CGO, the importers of European vehicles would not be required to go to the authorised local agents seeking assessment of vehicles. At the moment, these authorised local agents give the assessed value of vehicles on payment of a fee by the importer.

The amendment would facilitate importers, and the value would not be declared by the local agents of big, luxurious vehicles from Europe.

With the existence of online data and importers’ value, it will not be necessary to pay fees to these authorised dealers to declare the assessment value.