The Federal Board of Revenue (FBR) has abolished the role of authorised local agents in the valuation and assessment of duties and taxes on imported vehicles, including old and used cars, through the issuance of a new Customs General Order (CGO).
According to the latest directive, the revised procedure will apply primarily to vehicles imported from Europe, particularly luxury brands manufactured in Germany. The change does not affect the existing valuation mechanism for vehicles imported from Japan, which will continue under the current system.
Under the new framework, customs authorities will assess duties and taxes on imported European vehicles solely on the basis of prices certified by the original manufacturers. The FBR believes the move will help curb the longstanding issue of under-invoicing, which has resulted in revenue losses to the national exchequer.
In a notification issued on Monday, the FBR announced amendments to Customs General Order No. 14 of 2005, originally dated June 6, 2005. The changes remove references to “authorised local agents” from key provisions of the order, effectively eliminating the requirement for importers to obtain valuation certificates from these agents.
Specifically, the words “on their authorised local agents” have been deleted from sub-paragraphs (i) and (iii) of paragraph 1, while the phrase “or their authorised agents” has been omitted from sub-paragraph (ii). As a result, no certification from authorised local agents will now be required for customs assessment purposes.
Under the revised rules, the Free on Board (FOB) value of a vehicle at the time of its manufacture, as officially certified by the manufacturer, will serve as the basis for calculating duties and taxes. Customs authorities will rely on manufacturer-verified prices and available online data to determine valuation.
The elimination of local agents’ involvement has been formalised through Customs General Order No. 2 of 2026. With this amendment, importers of European luxury vehicles will no longer need to approach authorised local agents to obtain assessed values, a process that previously involved the payment of service fees.
Officials say the decision is expected to streamline the import process, reduce costs for importers, and enhance transparency in vehicle valuation. The FBR has noted that with improved access to international pricing databases and manufacturer certifications, reliance on third-party valuation agents is no longer necessary.
