Punjab Bans Transfer of Imported Vehicles for One Year
Punjab has imposed a one-year restriction on the transfer of imported vehicles following registration, the province’s Excise and Taxation Department confirmed. The move directly affects buyers, sellers and registrar of imported vehicle offices handling ownership changes across the province.
Under the new policy, the original importer must keep any imported vehicle registered in their own name for a full year before selling or transferring it to another buyer.
The department has added a system-level check that automatically blocks transfer requests submitted before the one-year period ends.
Which Vehicles Are Affected
The restriction applies specifically to vehicles brought into Pakistan under the Gift and Transfer of Residence schemes. These schemes have long served overseas Pakistanis. They allow a vehicle to be imported as a gift to a family member. They also apply when someone returns to settle in the country.
This differs from short-term entry systems abroad. Some countries use a temporary import carnet for travelers moving a vehicle across borders for a limited period. Pakistan’s Gift and Transfer of Residence schemes work differently. They are meant for permanent import and personal use, not resale.
Officials say the new rule closes a loophole. Officials say some importers were using vehicle registration as a quick entry point into the commercial resale market.
The Federal Policy Behind the Change
The Punjab restriction follows a federal amendment issued by the Ministry of Commerce through SRO 61(I)/2026, dated January 15. The notification withdrew the Personal Baggage Scheme entirely and declared that any imported vehicle brought in under the Gift or Transfer of Residence schemes would remain non-transferable for one year from the date of import.
The federal government also extended the required gap between two vehicle imports under these schemes, raising it from 700 days to 850 days. Officials said the goal is to reduce repeated, rapid imports that importers were using to bypass standard commercial import duties.
Why the Government Made the Change
According to the Ministry of Commerce, the changes are meant to stop misuse of vehicle import schemes for commercial purposes. Authorities noted that some importers were bringing in vehicles under personal-use schemes and reselling them almost immediately, effectively running informal dealerships without paying commercial import taxes.
By locking ownership for a full year, the government aims to separate genuine personal imports from disguised commercial trading.
Impact on Punjab’s Vehicle Market
The Punjab Excise Department reports that imported vehicles account for roughly 20% of all vehicle registrations in the province. That makes the new restriction significant for the used car trade, particularly for dealers who have relied on quick resale of recently imported vehicles.
Buyers looking for an imported vehicle will now need to confirm registration dates before purchase, since any vehicle registered within the last year under these schemes cannot legally change hands. Sellers and dealers will also need to adjust inventory planning around the one-year hold period.
FAQs
1. What is the new rule on imported vehicle transfers in Punjab?
The Gift and Transfer of Residence schemes require the importer to keep the vehicle registered in their own name for one year before transferring it to a new owner.
2. Which vehicles are covered by the one-year transfer ban?
The ban covers only vehicles imported under the Gift and Transfer of Residence schemes.
3. Why did Punjab introduce this restriction?
The Punjab Excise Department added the check to stop people from using personal-use import schemes to sell vehicles commercially soon after registration.
4. What changed at the federal level under SRO 61(I)/2026?
The Ministry of Commerce withdrew the Personal Baggage Scheme and set a one-year non-transfer period for vehicles imported under the Gift or Transfer of Residence schemes, effective January 15, 2026.
5. How much has the gap between imports increased?
The minimum gap between two vehicle imports under these schemes rose from 700 days to 850 days.
6. How many vehicles in Punjab are imported?
Imported vehicles make up about 20% of total vehicle registrations in Punjab, according to the Excise and Taxation Department.
7. Can a registrar of imported vehicle offices process a transfer before one year is complete?
No. The Excise Department’s system-level block prevents transfer requests from processing until the one-year holding period ends.