Car Importers In Trouble: FBR Scraps ‘Local Agent’ Prices.

In a major move, the Federal Board of Revenue (FBR) has officially overhauled the valuation process for imported vehicles. According to Customs General Order (CGO) No. 02 of 2026, issued on January 26, 2026, the government has significantly tightened the rules governing the determination of car values for customs duties.

The “ATP” Era Ends

For years, many importers relied on the Asian Trust Price (ATP) system and certifications from local authorized agents to determine the taxable value of vehicles. This often allowed for lower valuations and, consequently, lower taxes. However, as noted in recent industry discussions, “the ATP game is over”. The FBR is moving toward a more rigid and potentially much more expensive valuation system.

What has Changed?

The new order makes specific amendments to the long-standing CGO No. 14 of 2005. The key changes include:

• Omission of Local Agents: The words “or their authorized local agents” have been officially removed from the valuation criteria in paragraph 1, sub-paragraphs (i), (ii), and (iii) of the original order.
• Shift to MSRP: Previously, valuation could be determined by an authorized local agent’s price statement. With this option deleted, customs officials will now rely primarily on the Manufacturer’s Suggested Retail Price (MSRP).

Local Implications

The new policy effectively strips authority from major local players. Here’s how it changes the game for high-end imports:

• Dealers Rendered “Irrelevant”: Authorized local groups no longer have the authority to issue valuation certificates for customs.
• The End of ATP: The Internal Trade Price (ATP), the wholesale-level cost previously used to calculate duties, is being scrapped in favor of a much higher benchmark.
• Direct Global MSRP: Customs officials will now bypass local intermediaries and pull the Manufacturer’s Suggested Retail Price (MSRP) directly from international manufacturer databases.
• Higher Tax Brackets: By switching from dealer-level trade prices to full global “sticker prices,” the FBR has closed the door on favorable valuations, ensuring luxury cars face the maximum possible tax hit.

What This Means for You

By shifting to the MSRP exclusively, the “loophole” of receiving a lower valuation from a local agent has been closed. Because the MSRP is the official global “sticker price,” it is almost always higher than the previously used ATP or agent-assisted values.

The Bottom Line 

If you plan to import a car, expect a significant increase in customs duties and taxes. This move is clearly aimed at documented transparency, but for the average buyer, it means imported cars are about to get a lot more expensive.