Islamabad: The federal government has announced a one-time exemption to help clear thousands of used imported vehicles that have remained stranded at Karachi port after new inspection requirements caused delays in customs clearance.
According to Beyond Time News, the Ministry of Commerce has relaxed specific import conditions for eligible used vehicles arriving under the Gift, Personal Baggage and Transfer of Residence (TR) schemes. The decision is expected to provide relief to importers and overseas Pakistanis who were affected by the sudden implementation of mandatory inspection rules earlier this year.
Government Responds to Import Delays
The exemption applies only to vehicles covered under a Master Bill of Lading (MBL) dated between January 16 and March 9, 2026. Many of these vehicles had already been purchased, shipped or were in transit when the government introduced new compliance requirements.
As a result, thousands of vehicles reached Pakistani ports without the required documentation, preventing customs authorities from processing their clearance.
The latest decision is designed to resolve the backlog while ensuring that imported vehicles continue to meet essential safety and quality standards.
Why the Vehicles Were Held at Karachi Port
In January 2026, Pakistan introduced mandatory Pre-Shipment Inspection (PSI) requirements for all used vehicles imported from Japan.
A PSI certificate confirms that a vehicle has undergone inspection before export and complies with established safety, quality and roadworthiness standards. The policy was introduced to improve the quality of imported used vehicles entering the country and to protect consumers from purchasing vehicles with serious defects.
However, because the regulation came into effect with limited transition time, many buyers had already completed purchases before the new requirement became mandatory. Vehicles shipped during this period arrived in Pakistan without PSI certificates, leading to widespread customs delays.
Which Vehicles Qualify for the Exemption?
According to Beyond Time News, the one-time relaxation applies only to used vehicles imported through the following schemes:
- Gift Scheme
- Personal Baggage Scheme
- Transfer of Residence (TR) Scheme
Only vehicles with a Master Bill of Lading dated between January 16 and March 9, 2026, are eligible for the exemption.
Commercial imports outside these categories are not covered by the government’s latest decision.
Auction Sheets Can Be Used for Clearance
Industry sources say customs authorities may clear eligible vehicles even without a PSI certificate by relying on their original Japanese auction sheets.
The auction sheet provides detailed information about a vehicle’s condition, mileage, previous repairs and overall quality. Customs officials will examine these records before granting clearance.
Authorities have clarified that the exemption does not remove safety checks. Vehicles must still satisfy minimum quality standards before they are allowed into the country.
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Vehicles in Poor Condition Will Not Be Cleared
The Ministry of Commerce has instructed the Federal Board of Revenue (FBR) and Customs authorities to reject vehicles that fail to meet minimum inspection criteria.
According to the notification, clearance will not be granted to vehicles classified on Japanese auction sheets as:
- Overall Grade 3 (Below Average)
- Overall Grade 2 (Poor Condition)
- Overall Grade R (Repaired Accident Vehicle)
- Overall Grade RA (Minor Accident Repair)
The restriction is intended to prevent damaged or unsafe vehicles from entering Pakistan’s roads.
Compliance with Import Rules Remains Mandatory
Although the government has granted temporary relief, officials have emphasized that all other provisions of the Import Policy Order, 2022, remain fully applicable.
Importers must continue to comply with customs procedures, documentation requirements and all relevant laws before their vehicles can be released.
The Ministry of Commerce has directed the FBR and Pakistan Customs to ensure that every eligible vehicle fulfills the remaining legal conditions before clearance.
Why This Decision Matters
The one-time exemption offers immediate relief to hundreds of importers and overseas Pakistanis who faced unexpected delays despite completing vehicle purchases before the new inspection rules took effect.
By allowing customs clearance for eligible shipments while maintaining quality checks, the government aims to reduce congestion at Karachi port, ease financial losses for vehicle owners and improve the efficiency of the import process.
The decision also highlights the importance of providing transitional arrangements whenever major regulatory changes are introduced, helping businesses and consumers adapt without unnecessary disruption.
Looking Ahead
The exemption is strictly limited to vehicles imported during the specified period and should not be viewed as a permanent change in import policy.
Future shipments of used vehicles will continue to require valid Pre-Shipment Inspection certificates before export, ensuring compliance with Pakistan’s updated vehicle import regulations and safety standards.
Frequently Asked Questions
What is the government’s one-time relief for used car imports?
The government has allowed eligible used vehicles stuck at Karachi port to be cleared without a Pre-Shipment Inspection (PSI) certificate, provided they meet specified conditions.
Which vehicles qualify for the exemption?
Only vehicles imported under the Gift, Personal Baggage or Transfer of Residence (TR) schemes with a Master Bill of Lading dated between January 16 and March 9, 2026, are eligible.
Can vehicles without a PSI certificate still be cleared?
Yes. Eligible vehicles may be cleared using their original Japanese auction sheets, subject to customs inspection and compliance with quality standards.
Which vehicles will not receive customs clearance?
Vehicles classified as Overall Grade 3, Grade 2, Grade R or Grade RA on Japanese auction sheets will not be cleared because they do not meet the required safety standards.
Will the PSI requirement continue in the future?
Yes. The exemption is temporary. Future imports of used vehicles must comply with the mandatory Pre-Shipment Inspection requirements and all applicable import regulations.
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