Customers to get huge relief on late delivery of vehicles

Shahnawaz AkhterWeb Editor

01st Jul, 2021. 04:37 pm
car sales

KARACHI: The Federal Board of Revenue (FBR) has made it mandatory for the car assemblers/manufacturers to pay an amount as an interest to the buyers on late delivery of motor vehicles, a notification issued on Thursday revealed.

“The importer-cum-assembler or Original Equipment Manufacturer (OEM) shall pay Kibor + three per cent per annum to the customer against late delivery exceeding 60 days of initial booking on the whole of the deposited amount.”

“[The] statement/details of reimbursement at Kibor + three per cent against deliveries beyond 60 days shall be submitted to [the] Engineering Development Board (EDB) or Input-output Coefficient Organisation (IOCO) of the FBR bi-annually,” the FBR said.

The local car assemblers/manufacturers are availing of reduced rates of Customs duty on the import of raw materials since 2006; however, the revenue board has noticed that the manufacturers, despite availing of the facilities, surpassed the delivery time of motor vehicles to their customers.

Through the latest notification, the Federal Board of Revenue also amended certain requirements and facilities available to the manufacturers/assemblers.

“The concessionary Customs duty for various models of new entrants under [the] Automotive Development Policy (ADP) 2016/2021 will continue for five years from the date of [the] first manufacturing certificate of respective variant issued by the EDB or up to June 30, 2026, whichever is earlier.”

Under the concessionary duty regime, the importer must be an assembler or manufacturer who has suitable in-house facilities or the importer is in the possession of a firm contract for the manufacturing of the specified goods with any other manufacturer having suitable in-house facilities and registered with the Sales Tax Department for the manufacturing of such goods, to manufacture road worthy vehicles according to the laid down standards and, this fact, has been certified by the Engineering Development Board of the Ministry of Industries and Production.

However, the facility of assembly or manufacturing under firm contract will not be available to importers, for auto rickshaw and three-wheeler cargo loaders, it added.

Adsense 300 x 250