ISLAMABAD: The government has imposed or increased regulatory duties on the import of 657 luxury items and notified additional customs duties on the import of 2,200 items, effective from July 1.
The Federal Board of Revenue (FBR) has levied a 2% Additional Customs Duty (ADC) on items previously subject to 0% duty. This ADC will apply at rates of 2%, 4%, 6%, and 7% on the import of goods.
Regulatory duties now range from 5% to 55% on the import of hundreds of items. Notably, a 7% duty has been imposed on the import of cars, jeeps, and light commercial vehicles in completely knocked down (CKD) condition exceeding 1,000 cc, as well as heavy commercial CKD vehicles.
The FBR issued SRO.928(I)/2024, replacing its previous notification No SRO 966(l)/2022, to levy regulatory duties on the import of specified goods.
Here are some key regulatory duties imposed:
- Perfumes and sprays: 20%
- Watches and sunglasses: 30%
- Imported cycles: 10%
- Imported dairy products: 20-25%
- Natural honey: 30%
- Imported dates and other fruit: 25%
- Cosmetics: 55%
- Imported shaving cream and soap: 50%
- Men’s caps, overcoats, jackets, trousers, and shirts: 10%
- Women’s overcoats, jackets, skirts, and trousers: 10%
- Imported jewelry: 45%
- Oral or dental hygiene products: 50%
- Cheese and curd: 25%
- Potatoes, other vegetables, and vegetable mixtures: 50-55%
- Sugar confectionery (including white chocolate): 40%
- Tobacco: 50%
- Dog or cat food: 50%
- Leather clothing and accessories: 50%
- Video game consoles and machines, table or parlour games: 50%
Regulatory duties will not be levied on imports under the following conditions:
- Notification No SRO 678
- Chapter 99 of the First Schedule of the Customs Act
- Temporary Importation Scheme via Notification No. S.R.O. 492(l)/2009
- Fifth Schedule to the Customs Act, 1969
- Import of special steel round bars and rods of non-alloy steel exceeding 50mm in diameter by seamless pipes manufacturers registered under the Sales Tax Act, 1990
- Import of rubber aprons and cots
- Import of vehicles (CBU) by new entrants
- Import of input materials used for manufacturing auto parts by local vendors under Notification No SRO 655(l)/2006
The rate of regulatory duty on the import of CKD/SKD kits for home appliances, as mentioned in the table, will be 5%.
According to SRO 929(I)/2024, a 2% additional customs duty has been imposed on the import of sub-components, components, and sub-assemblies of automotive vehicles, automotive climate control equipment, and automotive batteries for in-house use, supply to OEMs and assemblers, or sale in the open market. These components are used in manufacturing agricultural tractors, road tractors for semi-trailers of 280 HP and above, road tractors for semi-trailers less than 280 HP, and fully CNG-dedicated vehicles.
Additionally, a 2% ADC has been imposed on the import of components for the assembly/manufacture of agricultural tractors, road tractors for semi-trailers and trailers of 280 HP, including tires/tubes.
Furthermore, a 2% ADC will apply to the import of components, sub-components, sub-assemblies, and assemblies (excluding consumables), imported in any kit form, and direct materials for the assembly or manufacture of vehicles under Chapter 87 of the First Schedule to the Customs Act.
The additional customs duty will not be levied on the import of:
- Seeds and spores for sowing
- Motor spirit, high-speed diesel oil, liquefied natural gas
- Polymers of ethylene and propylene in primary forms
- Cotton, solar panels, and fertilizers
- Plant and machinery used in manufacturing or production of goods under Chapter 84 and 85 of the First Schedule to the Customs Act 1969
- Items under Chapter 99 of the First Schedule to the Customs Act, 1969
- Items under the Fifth Schedule to the Customs Act 1969
- Items under the Baggage Rules 2006
- Notification No SRO.577(l)/2005 dated June 6, 2005
- Notification No SRO.565(l)/2006
- Notification No SRO.693(l)/2006
- Temporary Importation Scheme
- SRO 678(l)/2004 by exploration and production companies, their contractors, and service companies for offshore projects
- Electric vehicles (2-3 wheelers) under PCT codes 8703.8030 (electric auto rickshaw), 8711.6040 (electric motorcycle), and (3-wheeler electric loader) until June 30, 2025
- Cars, jeeps, and light commercial vehicles in CKD condition up to 1,000cc and vehicles in CBU condition up to 850cc.
