The Import Policy Order (IPO) 2022 has been revised by the government, now defining vehicles with up to 2,000 kilometers as “new” compared to the previous limit of 500 kilometers. This adjustment aims to prevent Customs detention of such vehicles at ports.
The Ministry of Commerce announced this modification in S.R.O 430 (I) 2024, stating, “By exercising its authority, the federal government has decided to amend the policy, replacing the previous figure of “500” with “2000”.
Stated Rationale
Experts in the market suggest that this revision was prompted by requests from influential entities, as some vehicles faced delays at ports due to exceeding mileage limits. The previous IPO 2022 specified a “new vehicle” as one manufactured within 12 months before import and not driven or registered for more than 500 kilometers prior to import.
A media report indicates that the ministry decided to relax restrictions on vehicle mileage due to the journey from factory warehouses to ports exceeding the 500-kilometer threshold. By allowing vehicles with up to 2,000 kilometers to be classified as new, importers are expected to avoid frequent Customs detentions at ports.
However, a car importer clarified that this change would only affect vehicles imported under Letters of Credit (LC), excluding other car importers.
This proposal was previously approved by the Economic Coordination Committee (ECC) and the Federal Cabinet.
In recent years, the government has implemented strict import regulations due to economic constraints and the need to conserve foreign exchange reserves. While this relaxation is anticipated to benefit car imports, its true impact will be observed in the coming months.
What are your thoughts on this alteration in the Import Policy Order? Do you believe it is a positive move by the government? Please share your opinions in the comments section.
