The Engineering Development Board (EDB) has introduced a new and strict code of conduct for the commercial import of used vehicles in Pakistan.
According to the new rules, only those companies will be allowed to import vehicles that are registered under the Companies Act 2017.
The Companies Act 2017 is basically a rulebook for how businesses in Pakistan must be set up and managed.
New method for importing used vehicles in Pakistan
Official documents of these companies must also clearly state that importing vehicles is their main business.
The rules also make it required to follow tax laws. Importers must have a valid NTN and must be listed as active taxpayers with the Federal Board of Revenue (FBR).
The government has also made the payment system stricter. All payments must be made through banks to stop money laundering and illegal activities.
In addition to this, importers must either set up their own 3S network across the country or work with a partner.
They also have to give a written guarantee that genuine spare parts will be available throughout the vehicle’s life.
Further, for quality control, vehicles will now go through two inspections. First, they will be checked by EDB-approved organisations abroad before shipping.
After that, they will be checked again when they arrive in Pakistan. The importer will pay for both of the inspections.
It is also now required to provide a “Certificate of Conformity” in both Urdu and English with every vehicle.
What is a 3S network?
A 3S network is an “All-in-One” facility strategy that combines three basic services to confirm customer loyalty and long-term brand health.
- Sales (1S): The showroom where new vehicles are displayed and sold.
- Service (2S): The official workshop for maintenance, diagnostics, and repairs.
- Spare Parts (3S): The retail outlet for actual manufacturer parts and accessories.
Experts say that these steps will stop unregistered and non-tax-paying importers. This will also help to make sure that only safe and vehicles of reliable quality are sold in the market.
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