Are you willing to import a Heavy Bike? If yes, then you have to read this article very carefully, because in this article you will get to know about the import procedure.
The trend of importing heavy bikes has sharply increased in Pakistan since 2012. Heavy bike assemblers of different companies also started to introduce new bikes due to the increasing interest of youth in heavy bikes.
According to the Pakistan Bureau of Statistics (PBS), bike imports have increased rapidly. Association of Pakistan Motorcycle Assemblers’ Chairman said heavy bikes in some big cities of Punjab (Faisalabad, Islamabad, Lahore, Gujranwala, Sialkot) are more popular as compared to Sindh (Karachi), where the sale ratio of these bikes is comparatively low. Due to increased bike imports, many people have taken advantage of this opportunity by opening service outlets in Punjab and Sindh, where they deal only in heavy bikes.
He also added, “Bikes brought under various government’s plan of action have distinct price tags, and ranges of these bikes start from 0.5 million to 3 million and even above.” He also stated that “The government is getting good revenue from these imports of heavy bikes.”
Here you will learn which source you should import this bike from, Which country would be the best to import it, Who is eligible to import it, and its total cost, including customs duties & all taxes.
Who is eligible to import
All citizens of Pakistan can import this bike, but there are some rules and regulations that every citizen is liable to follow for importing a heavy bike in Pakistan; a person must be more than eighteen years old and must have a passport of 180 days old.
What documents do you need for importing
- Passport
The Federal Board of Revenue of Pakistan states that a citizen can import a bike only by availing of the transfer of residence scheme in which you must have a passport used for more than three months.
- Bank Account
Whenever you hear/think about importing, you need a bank account, but what type of bank account will you need in the import process? So you must have a current bank account necessary for import proceedings and documents.
Rules & Regulations by FBR Pakistan (Federal Board of Revenue)
- You can import motorcycles under the Transfer of Residence Scheme.
- Tax and duties on imports are imposed according to the engine’s Cubic Capacity (cc).
Following are the import taxes & duties according to the engine’s cubic capacity (cc) by FBR.
| S.No. | Cubic Capacity of Engines | Tax and Duties in US$ |
| 1 | Up to 800cc | US$4,800 |
| 2 | 801cc to 1000cc | US$6,000 |
| 3 | 1001cc to 1300cc | US$13,200 |
| 4 | 1301cc to 1500cc | US$18,590 |
| 5 | 1501cc to 1600cc | US$22,550 |
| 6 | 1601cc to 1800cc | US$27,940 |
Our Case Study
We have gone through all the procedures mentioned below for you to read and get benefits out of it. Following is the approach that we followed and got the result of our best. We have taken “Yamaha YZF-R1 2021″ for importation in Pakistan as a case study.
Yamaha YZF-R1 2021 is Yamaha’s most technologically-advanced bike, and it has incredible technology. The bike consists of a wide range of electronic rider aids designed to offer added safety. The R1’s suspension can be adjusted to many rider styles, from highly-competitive track use to more relaxed touring. The R1 has one of the best chassis designs, optimized aerodynamics, and an incredibly stiff chassis.
The bike has 998cc, liquid-cooled, two cylinders, DOHC, 16-valve, 4-stroke, inline engine, and two cylinders and 16 valves. This bike weighs 186 pounds at 150 HP. The fuel capacity
of the bike is 11.6 gallons. The bike has a sophisticated suspension system. It has Dunlop tires and 120/70-ZR17 on the front and 240/45-ZR17 on the rear. The bike’s dimensions are
4,559 mm width, 1,686 mm height, 1,655 mm length, 1,474 mm wheelbase, 180 mm ground clearance, with telescopic suspension in the front and mono-shock suspension in the rear.
Also Read: How to Import Car in Pakistan and What is Car Import Policy
How to import? (Complete Procedure)
- Find the seller
There are a lot of sellers all over the globe, and finding the best one is not a big deal. We have already seen a seller whose showroom is in Wigan, U.K, and he deals only in heavy bikes. The invoice price of Yamaha YZF-R1 2021 at his showroom is £17,195. We have mentioned below the link to their website as well.
It is better to find the seller/dealer for self-satisfaction on their own. You can easily find a best seller for you by following the below-mentioned instructions.
1) Search on Google for the seller (mentioning the full name of the bike with its model)
2) Open several websites simultaneously in a new tab from the search results.
3) Now, many dealers have different packages for the same bike.
4) It’s time to analyze all details mentioned by the sellers.
5) Compare rates of the product offered by all vendors and choose the best one.
6) Make sure that you check the feedback of the people who have bought from the particular vendor.
- Contact the vendor
When you have found your seller, then contact him to make the deal done and also ask him to send a proforma invoice of the product by sending him a query email.
Pro-Forma Invoice
Initially, you will take the market tour to determine your product seller; then, after finding your suitable seller, you need to take the Pro-forma invoice of the product from the seller. The pro-Forma invoice contains information about the import. It is essential for applying for an import license, contract for pre-shipment inspection, open a letter of credit, and arrange to transfer hard currency.
The points to be included in the Pro-forma are:
- Seller’s name and address
- Buyer’s name and address
- Buyer’s references
- Item quoted price
- Weight of the quoted product
- Dimensions of quoted product
- Discounts, if applicable.
- Terms of sale (include delivery point)
- Terms of payment
- Estimated date of shipping
- Validity Date
Find an agent
Now it’s time to find an agent after you have finalized your deal with the seller to import the product, If you don’t have a passport or don’t have any idea about the product’s shipping procedure and customs clearance, then don’t worry. You need to find a reliable agent to assist you. Always remember, find that agent who has the following services.
1) Import your product on the transfer of residence scheme by self-arranging the passport for import purposes.
2) Shipping service from seller’s outlet to your doorstep.
3) Customs Clearance Service.
How to find an agent?
We live in a modern era, in which the latest technology surrounds us, there is every kind of information on the internet that we need. You can easily find a reliable agent using “Google & Facebook.”
How to find an agent on Google
- Type “custom clearance agents Pakistan/custom brokers Pakistan” on google and search.
- Click on the result given below with the google maps edition.
- Here, you will get many agents and agencies and their phone numbers, addresses, and direction.
- Now you can easily choose your satisfactory person by contacting them.
How to find an agent on Facebook - Write “custom clearing agents/custom clearing agents Pakistan on the Facebook search panel.
- You will see your search result in various filters (posts, pages, photos, videos, groups).
- Select the post-filter, and you get all posts of agents and agencies in which you will get their number, address, and all information they mention.
- You can also select a group filter to find custom clearance groups in which you get a lot of related data.
Now you are ready to negotiate with the agents/agencies.
What to negotiate with the agent
1) Shipment
2) Custom Clearance
3) Passport Fee
4) Agent’s Fee
- Shipment
It refers to that point in which you will ask agents about the availability of the nearest port (for unloading your imported item) and what the cost would be. You can also go with any available port, whether it is far or near, but the fact that if you succeed in finding that agent who will provide the facility for unloading your item at the nearest port, then your shipment from the seller’s port to the destination port will cost you lower.
- Custom Clearance (Custom Duty and Taxes)
Every Pakistani citizen must pay customs duties and taxes while importing any product. These duties and taxes remain the same until the government changes them, but ask the agent about current duties and tax rates (%) because sometimes the government changes its policies according to the need of the time.
- Passport Fee
A passport is essential. If you have your passport 180 days old, then it is well and good, but if you don’t have, you can easily avail of the passport facility that the agents provide to their clients. Now, this is that stage for you where you should be aware of market rates of passport service because its fee is variable, agents shall tell you different rates, and you should go with that one which is comparatively low than others.
- Agent’s Fee
Agents charge their fees (commission) to provide all the services mentioned above. The agent’s commission is also not fixed, and it varies from person to person. Compare all agents’ fees and hire the one who charges lower. When you are dealing with an agent, specify all requirements and then conclude your contract.
What is the customs clearance policy
The custom clearance policy of Pakistan states that every citizen is liable to pay clearance duties and taxes to import anything. The government has specified percentages of these duties and taxes. These taxes and duties include custom duty, federal excise duty, additional customs duty, sales tax, additional sales tax, income tax, and excise.
| Particulars | Fixed/Variable | Percentage | Calculation | Amount (R s) |
| Invoice of the Bike | 4099975 | |||
| Custom Duty | Fixed | 50% | 4099975*50% | 2049987 |
| Federal Excise Duty | Fixed | 10% | 4099975*10% | 409997 |
| Additional Custom Duty | Fixed | 7% | 4099975*7% | 286998 |
| Sales Tax | Fixed | 17% | 4099975*17% | 696995 |
| Additional Sales Tax | Fixed | 3% | 4099975*3% | 122999 |
| Income Tax | Fixed | 5.50% | 7666951*5.50% | 421682 |
| Excise | Fixed | 1.20% | 4099975*1.20% | 49199 |
| Sindh Stamp | Fixed | – | – | 1000 |
| TR Name Charges Approx. | Variable | – | – | 525000 |
| Shipping D.O | Variable | – | – | As Per Receipt |
| Port Charges | Variable | – | – | As Per Receipt |
| UK Beary Charges | Variable | – | – | 15000 |
| Custom Expense & Agency Charges | Variable | – | – | 150000 |
| Total Expense (excluding invoice price) | Variable | - | – | 4728857 |
Whole Expense on import of Yamaha YZF-R1 2021 (excluding shipment)
The expenses calculated in the subsequent draft can vary in the case of passport fees and agent’s commission, but the proportion (%) specified by the government would be the same until the government changes it. The invoice price of Yamaha YZF-R1 2021 mentioned in the calculation is by the “Wigan Yamaha” showroom in the U.K. (www.wiganyamaha.co.uk)
Calculation of Expenses (Including custom clearance, passport fee, and agent’s commission)
When you explore the online market for Yamaha YZF-R1, you will get different invoices from different dealers, and you can self-calculate custom duty and taxes by applying the calculation rules and rates given in the quotation mentioned above. All computation is very simple as you just have to figure out the specific percentage of particular tax and duty from the invoice price, which will be the amount you shall be liable to pay.
- Calculation of Income tax is different from the other duties and taxes.
Income Tax
Calculate income tax on the amount, i.e., the sum of the invoice price and all other duties and taxes, excluding excise.
Final Word
All of the above are the terms and conditions for importing Yamaha YZF-R1. Government changes its policies according to the need of time, so all you have to do is keep up to date with the government policies to save yourself from going through the hurdles. We hope this article may have assisted you and will assist you in importing your bike without any difficulty.
Disclaimer
The above information is best to our knowledge, but it may vary from time to time.
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