The Federal Board of Revenue has issued a new Customs General Order (CGO). It formally abolishes the role of authorised local agents in assessing duties and taxes on imported vehicles, including old and used cars.
The revised rule primarily applies to vehicles imported from Europe, especially high-end German-made models. Imports from Japan are excluded from this change.
Under the new CGO, customs authorities will now rely solely on prices certified by vehicle manufacturers. This will be used to determine the FOB value of imported luxury cars from Europe.
The FBR said the measure aims to curb under-invoicing, which has long affected duty and tax assessments on high-value vehicle imports.
Amendments to Existing Customs Order
The FBR amended Customs General Order No. 14 of 2005, dated June 6, 2005. The updated notification removes references to “authorised local agents” from multiple sub-paragraphs.
As a result, no certificate from an authorised local agent will be required for valuation purposes. Customs officials will assess duties and taxes based solely on manufacturer-certified data.
The role of authorised local agents in the valuation of old and used luxury vehicles has been officially eliminated. This was done through Customs General Order No. 2 of 2026.
Previously, importers were required to obtain valuation certificates from these agents, often at an additional cost. This requirement has now been removed.
With verified online manufacturer data available, importers will no longer need to approach authorised local agents to determine assessed values.
Officials said the change will simplify the import process, reduce costs for importers, and increase transparency in vehicle valuation.
The FBR believes the new system will ensure fair valuation, discourage manipulation of declared prices, and improve revenue collection. Customs authorities have been directed to implement the revised valuation mechanism with immediate effect.
