FBR Plans EFS Changes for Refurbished Vehicle Initiative

The Federal Board of Revenue (FBR) is preparing amendments to the Export Facilitation Scheme (EFS) 2021 to support the government’s proposed refurbished vehicle import and re-export initiative, according to Business Recorder citing sources in the Commerce Ministry.

The proposed amendments include introducing a disposal mechanism for used or salvaged auto parts remaining after the repair and restoration of imported vehicles and components.

Under the proposed framework, temporary import of vehicles under PCT heading 8703 would be permitted for companies operating repair and refurbishment facilities verified by the Engineering Development Board and registered with the FBR under the EFS.

Imported vehicles would be allowed strictly for repair, restoration, refurbishment and re-export purposes. Importer-cum-exporters would also be required to submit annual reconciliation statements to the relevant regulatory collectorates.

The amendments follow the government’s decision to revise the Import Policy Order 2022 to allow temporary import of vehicles for repair, refurbishment and subsequent re-export.

According to the Ministry of Commerce, the Special Investment Facilitation Council (SIFC), during the 14th meeting of its Sectoral Executive Committee held on June 18, 2025, approved launching a pilot project for the import and re-export of refurbished vehicles.

The SIFC also decided to expand the framework to include refurbishment and re-export of plant machinery and other industrial equipment.

Sources stated that the current Import Policy Order 2022 generally prohibits import of used vehicles and second-hand auto parts under Appendix-C, except for limited categories such as ambulances, firefighting vehicles and bulletproof vehicles.

A working group led by the Ministry of Industries and Production held several meetings to evaluate the feasibility of implementing the pilot project under the EFS 2021 framework.

Officials said stakeholders supported amendments to both the Export Facilitation Scheme and the Import Policy Order to operationalise the initiative.

The Ministry of Commerce informed a ministerial forum that stakeholders had endorsed the proposals for submission to the Economic Coordination Committee (ECC) of the Cabinet.

The proposed amendments would also permit temporary import of used auto parts under similar conditions exclusively for refurbishment and repair activities.

Officials clarified that imported vehicles and parts would not be allowed to be sold, transferred or disposed of within the domestic tariff area under any circumstances.

The forum approved the Commerce Ministry’s proposal with the condition that the initiative would be reviewed by the ECC after one year.