FBR Ends Local Agent Role in Used Car Valuation

The Federal Board of Revenue (FBR) has eliminated the role of authorised local agents in determining duties and taxes on imports of old and used vehicles from Europe through Customs General Order No. 02 of 2026, amending Customs General Order No. 14 of 2005, which governs the valuation of imported used vehicles. The changes delete all references to “authorised local agents” from provisions related to vehicle valuation.

Under the revised framework, customs authorities will now assess duties and taxes on European vehicles—particularly luxury models manufactured in Germany—exclusively on the basis of prices certified by the original manufacturer. Valuation certificates issued by authorised local agents will no longer be accepted or required.

As per the notification, the free-on-board value of a vehicle at the time of manufacture, as certified by the manufacturer, will serve as the benchmark for customs assessment. The revised valuation mechanism does not apply to vehicles imported from Japan, which will continue to be assessed under a separate system.

FBR officials said the decision aims to curb under-invoicing in imports of high-end used vehicles from Europe. Under the previous regime, importers were required to obtain valuation certificates from authorised local agents—often for a fee—which customs relied upon to calculate duties and taxes.

With the issuance of the new order, importers of European vehicles will no longer need to seek valuation from local agents, as customs authorities will rely on manufacturer-certified prices and accessible online data. The FBR said the move will simplify the import process and remove the additional financial burden on importers arising from agent fees.