Tariff Based System (TBS)


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Automotive Sector

Auto Development Policy (ADP) 2016-21

Auto Industry Development Programme (AIDP)  Trucking Policy
AIDC Established Visit Industry Pakistan
AIDC Nomination of Co-opted Members Auto Industry Development Committee
5 Year Tariff Plan For Custom Duties to be Applicable on Import of Automobile and Components
Tariff Based Systems (TBS) PAMA


Guidelines for Assembly/Manufacturing of Vehicle under Regulatory Environment.

Tariff Based System (TBS)

As of July 1st 2006, the deletion programs for the Automotive Sector have been replaced by the Tariff Based System (TBS).

 [SRO 656 (I) / 2006 dated June 22, 2006 (For OEMs)]

[SRO 693 (I) / 2006 dated July 1, 2006 (For OEMS)]

[SRO 655(I) / 2006 dated June 22, 2006 (For Vendors)]

The deletion programs have gradually been phased out under the WTO regime to become TRIMs compliant. The TBS is the outcome of a long drawn consultative dialogue between all stakeholders including OEMs and Vendors, belonging to different sub-sectors of the Automobile Industry.


The TBS has been developed with the following overriding objectives:


  1. Preservation & promotion of technologies that have been developed in the country
  2. Protection to the present job structure in the auto sector.
  3. Promote job creation
  4. Protect the existing & planned investment by the OEMs & Vendors
  5. Promote new investment
  6. Expand the consumer base to create economies of scale


The basic framework of Tariff Based System is as under:

1. Imports in CKD condition would be allowed only to assemblers having adequate assembly

facilities and registered as such by the concerned Federal Government Agency.

2. Parts/ components indigenized by June 2004 have been placed at higher rate of

     Customs Duty

3  Parts not indigenized would be allowed at CKD rate of Custom Duty.