Overview

• The Ministry of Commerce issued an SRO allowing companies to import used vehicles for commercial sale, reversing longstanding restrictions.
• Imports are initially limited to cars under five years old through June 30, 2026, with the age cap scheduled to be removed in July 2026.
• A 40% regulatory duty applies to used vehicles under five years old until June 30, 2026, with the premium reduced by 10 percentage points each year to reach zero by 2029–30.
• Commercial shipments must meet environmental and safety standards with testing and certification set by the EDB and the Ministry of Industries, with inspection mechanisms being put in place.
• The ECC directed work on the Motor Vehicle Industry Development Act, 2025 and sought final proposals by October 15 on tightening personal baggage, transfer-of-residence and gift import schemes, as industry leaders warned of potential pressure on local jobs and production.