Age Limit Removed on Used Car Imports
The federal government has removed the five-year age limit on commercial imports of used vehicles, with effect from July 1, 2026. The used car import age limit was lifted through a clarification from the Ministry of Commerce to the Federal Board of Revenue (FBR), in an office memorandum dated October 30, 2026.
The FBR had sought guidance on October 23 on whether the age restriction still applied to commercial imports of used vehicles after June 30, 2026. The ministry’s reply settled the question. Commercial importers may now bring in older vehicles, provided they meet the other import policy requirements and prescribed standards.
How the used car import age limit worked
Commercial imports of used vehicles under PCT headings 8702, 8703, 8704 and 8711 were initially allowed only for vehicles not older than five years, until June 30, 2026. Those imports also had to meet the environmental and safety standards set by the Ministry of Industries and Production and the Engineering Development Board (EDB).
The ministry said the decision approved by the Economic Coordination Committee (ECC) and the Federal Cabinet had also stated that the vehicle age limit could be removed after that date. The memorandum put it plainly: “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.”
The removal is subject to compliance with other applicable import policy requirements and prescribed standards. In practice, that means the age test has gone, but environmental, safety and duty conditions still apply.
Imports already rising fast
The government opened commercial imports of used vehicles last year under a phased plan. That plan included an additional 40 per cent duty, which is set to fall by 10 percentage points each year until 2029-30.
Used vehicle imports have risen sharply since then. Government sources earlier told ProPakistani that 2,276 used vehicles were imported in September 2026, compared with just 48 in May. The jump shows how quickly traders have responded to the opening of commercial imports.
Local car manufacturers are not happy about the impact of rising imports on locally assembled vehicles. Feature Pakistan reported on October 29 that Indus Motor had flagged misuse of the used-car import scheme, alongside an unclear auto policy. The assemblers argue that a flood of imported vehicles undercuts local production, while importers say competition gives buyers more choice and better prices.
What it means for buyers
For buyers, the removal of the age cap widens the pool of vehicles that commercial importers can offer. Older models that were previously barred by the five-year rule can now enter the market legally, which may put downward pressure on prices in the used segment. At the same time, buyers will still face the additional duty, which starts at 40 per cent and declines gradually over the coming years.
Running costs also matter in the purchase decision. Diesel crossed Rs400 per litre on October 30, while petrol stayed at Rs377.91, so fuel prices will shape which imported models make sense for daily use. The government has also said there will be no immediate cut in the petroleum levy, which keeps fuel costs high for motorists.
What happens next
The Commerce Ministry’s clarification gives the FBR a clear basis for processing commercial import cases without the age test. Traders, customs officials and buyers will now watch how the remaining conditions, including environmental and safety standards, are applied in practice. The phased duty reduction to 2029-30 will also shape how many older vehicles reach the market and at what price.
The original report on the age-limit removal was published by ProPakistani.
Which vehicles does the change cover?
It covers commercial imports of used vehicles under PCT headings 8702, 8703, 8704 and 8711. Those headings cover motor cars, buses, goods vehicles and motorcycles.
From when does the removal apply?
The five-year age limit stands removed with effect from July 1, 2026, under the Federal Cabinet’s approved decision.
Do other import conditions still apply?
Yes. The removal is subject to other import policy requirements and prescribed standards, including the environmental and safety standards set by the Ministry of Industries and Production and the Engineering Development Board.
