ISLAMABAD: The government has introduced or increased regulatory duties on the import of 657 luxury items and imposed additional customs duties on 2,200 items, effective from July 1, as reported on Tuesday.
The Federal Board of Revenue (FBR) has implemented a 2% Additional Customs Duty (ADC) on items previously subject to 0% duty. The ADC will apply at rates of 2%, 4%, 6%, and 7% on various goods.
Regulatory duties now range from 5% to 55% on hundreds of items. 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 enforce these regulatory duties on specified goods.
Some specific regulatory duties include:
- Perfumes and sprays: 20%
- Watches and sunglasses: 30%
- Imported cycles: 10%
- Imported dairy products: 20-25%
- Natural honey: 30%
- Imported dates and other fruits: 25%
- Cosmetics: 55%
- Imported shaving cream and soap: 50%
- Gents’ caps, overcoats, jackets, trousers, and shirts: 10%
- Female overcoats, jackets, skirts, and trousers: 10%
- Imported jewelry: 45%
- Oral or dental hygiene products: 50%
- Cheese and curd: 25%
- Potatoes and other vegetables: 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: 50%
Certain imports are exempt from these regulatory duties, including:
- Items under Notification No SRO 678
- Items under Chapter 99 of the First Schedule of the Customs Act
- Items under the Temporary Importation Scheme (Notification No S.R.O. 492(l)/2009)
- Items under the Fifth Schedule to the Customs Act, 1969
- Special steel round bars and rods by seamless pipe manufacturers
- Rubber apron and cots
- Vehicles (CBU) by new entrants
- Input materials for manufacturing auto parts by local vendors (Notification No SRO 655(l)/2006)
For CKD/SKD kits of home appliances not specified in the table, the regulatory duty will be 5%.
As per SRO 929(i)/2024, a 2% ADC has been imposed on the import of sub-components, components, and sub-assemblies of automotive vehicles, climate control equipment, and automotive batteries for in-house use or supply to OEMs and assemblers or for sale in the open market. These include equipment used in manufacturing agricultural tractors and road tractors for semi-trailers.
Additionally, a 2% ADC will apply to the import of components for assembly/manufacture in any kit form, including tyres and tubes for agricultural tractors and road tractors for semi-trailers.
The 2% ADC will also apply to the import of sub-components, components, sub-assemblies, and assemblies, excluding consumables, imported in kit form and direct materials for the assembly or manufacture of vehicles under Chapter 87 of the First Schedule to the Customs Act.
Exemptions from additional customs duties include:
- 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
- Fertilizers
- Plant and machinery for manufacturing or production under Chapters 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
- Items under various specific notifications and schemes
- Electric vehicles (2-3 wheelers) till June 30, 2025
- Cars, jeeps, and light commercial vehicles in CKD condition up to 1,000cc
- Vehicles in CBU condition up to 850cc
