Effective from July 1, 2026, the federal government dropped the five-year age cap on commercial imports of used vehicles, based on an announcement from the Ministry of Commerce. An office memorandum dated October 30, 2026, delivered this clarification from the ministry to the Federal Board of Revenue.
Guidance was requested by the Federal Board of Revenue on October 23 regarding whether the age restriction remained active for commercial used vehicle imports past June 30, 2026.
Age Cap Was Set to Expire in June
Commercial imports of used vehicles under PCT headings 8702, 8703, 8704, and 8711 were previously permitted solely for models up to five years old until June 30, 2026, as stated in the memorandum.
Compliance with environmental and safety guidelines established by the Ministry of Industries and Production and the Engineering Development Board was also mandatory for these shipments.
Approval from the ECC and the Federal Cabinet included provisions that allowed the vehicle age restriction to end after that date, according to the ministry.
The memorandum noted, "In view of the approved decision of the Federal Cabinet, the five-year age limit for the commercial import of used vehicles stands removed with effect from 01.07.2026."
Fulfillment of all other relevant import policy conditions and mandated standards remains necessary for this removal.
Imports Already Rising
A phased plan launched by the government last year permitted commercial used vehicle imports, incorporating a 40 percent extra duty scheduled to decrease by 10 percentage points annually until 2029-30.
A sharp rise in used vehicle imports followed this policy change. Government sources previously informed ProPakistani that September 2026 saw 2,276 imported used vehicles, contrasted with only 48 units in May.
Local car manufacturers express dissatisfaction regarding the effects of increasing imports on domestically assembled vehicles caused by recent government policies.
