EDB issues stricter code of conduct for used vehicle imports

ISLAMABAD: Engineering Development Board (EDB) Chief Executive Officer Hamad Ali Mansoor has issued a detailed code of conduct for the commercial import of used vehicles, according to an official statement issued on Tuesday.

The statement said the new framework has been introduced with a focus on transparency, quality standards and consumer protection. Mansoor said these areas remained his top priority as the board moved to regulate the sector more closely.

Under the new rules, only companies registered under the Companies Act, 2017 will be allowed to commercially import used vehicles. The code also requires such companies to clearly state in their Memorandum of Association that vehicle import is their principal business activity.

The statement said compliance with tax laws will be mandatory for all eligible importers. This includes holding a valid National Tax Number (NTN) and maintaining active filer status with the Federal Board of Revenue (FBR).

In addition, commercial importers will be required to obtain a registration certificate from the EDB before carrying out imports. The code further states that all transactions related to imports must be routed through authorised banking channels.

Inspection, records and after-sales requirements

As part of the conditions, importers must either establish or enter into partnerships for a nationwide 3S network covering sales, service and spare parts. They will also have to provide written assurance that genuine spare parts will remain available throughout the life cycle of the vehicles they sell.

The code of conduct also sets out inspection requirements at different stages of the import process. According to the official statement, pre-shipment inspection will be conducted by bodies approved by the EDB. After the vehicles arrive in Pakistan, they will be subject to post-shipment inspection, with the cost to be borne by the importer.

Importers will also be required to maintain digital records of all vehicles brought into the country. These records must include vehicle identification numbers (VIN numbers) as well as inspection reports.

Another requirement under the new framework is the issuance of a certificate of conformity with every vehicle sold. The certificate must be provided in both Urdu and English.

The official statement presented the measures as part of a broader effort to tighten oversight of used vehicle imports and set clearer obligations for commercial importers operating in the market.