Monday, May 2, 2011

Dealers abusing policy for used cars import

The relaxation in used cars import has paved way for corrupt practices for auto dealers who are violating the policies right under the nose of Government agencies with connivance of some officials.
According to details, the relaxation of age of used cars given under personal baggage and gift scheme are being fully abused by the trader mafia which has imported even 8 years old cars and sources believe same will be released under misdeclaring of age tactics used by these mafias after greasing some palms.
It seems that government has provided an ease to the local Auto Dealers in the form of relaxing the import policy on used cars allowing the import of used cars upto 5 years old as anecdotal evidence of a massive fraud has been reported and uncovered, an official said requesting anonymity.
Market sources said that auto dealers are abusing the relaxation policy on used cars’ import and heavy shipments are docked at the port containing hundreds of cars which are as much as old as 7 to 10 years or older.
They said that auto dealers are abusing the policy and shipping 10 year old or even older cars to Pakistan rather than following the relaxation in the policy strictly.
Moreover, despite being repeatedly warned by the experts, the government has allowed the import of 5-year-old vehicles once again but the policy facilitates only overseas Pakistanis to ship their personal used cars to their dear ones in Pakistan under personal baggage and gift schemes.
One can understand how this personal baggage and gift scheme is being exploited by the trader mafia who are purchasing used cars in bulk quantities and shipping to Pakistan. These indicators bring the fraud of auto dealers into light and it is obvious that Auto Dealers cannot commit this fraud alone.
They must have strong support of the forged documentation from the concerned authorities who are also making big profits at the cost of massive of loss in foreign exchange and mammoth cuts in revenue collection

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