The federal government has removed the five-year age restriction on commercial imports of used vehicles, effective July 1, 2026. The decision allows businesses to import older used vehicles, subject to applicable import policies and prescribed standards.
The Ministry of Commerce confirmed the change in an office memorandum sent to the Federal Board of Revenue (FBR) on October 30. The clarification followed an FBR request dated October 23 regarding the age limit after June 30, 2026.
Which Used Vehicles Can Now Be Imported?
Previously, commercial imports of used vehicles faced a five-year age limit until June 30, 2026. The restriction covered vehicles under PCT headings 8702, 8703, 8704 and 8711.
These classifications include different categories of vehicles, such as passenger cars, buses, goods vehicles and motorcycles.
However, the government’s approved decision allowed the age restriction to end after the specified date. The Commerce Ministry clarified this position in its memorandum.
“The five-year age limit for the commercial import of used vehicles stands removed with effect from 01.07.2026,” the memorandum stated.
What Conditions Will Importers Still Have to Meet?
Although the government has removed the age restriction, commercial imports remain subject to other applicable requirements. Importers must continue meeting the relevant import policy conditions and prescribed standards.
Previously, the rules also required imported used vehicles to meet environmental and safety standards. The Ministry of Industries and Production and the Engineering Development Board (EDB) set those standards.
Therefore, removing the age limit does not mean importers can bring in vehicles without meeting regulatory requirements.
How Will Used Car Import Duties Change?
The government introduced commercial imports of used vehicles last year through a phased policy. Under that arrangement, importers faced an additional 40 percent duty.
The government plans to reduce this additional duty by 10 percentage points each year until 2029-30. Consequently, the duty structure will continue changing during the phased implementation period.
The removal of the five-year age restriction marks a change in the commercial used vehicle import policy. However, importers must still follow the remaining conditions and standards governing these shipments.
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