Zero customs duty retained as FBR restricts concessional imports to authorised nutrition programmes
ISLAMABAD: The Federal Board of Revenue (FBR) has announced new regulatory conditions for the import of skimmed milk powder under the Finance Bill 2026, effective from July 1, 2026, while maintaining a zero per cent customs duty on the product.
The move is aimed at ensuring that concessional imports are used exclusively for the production of specialised nutritional products designed to combat malnutrition and support vulnerable populations, particularly children.
According to official details, the revised framework introduces stricter eligibility requirements for manufacturers seeking to benefit from duty-free imports of skimmed milk powder.
Zero Customs Duty Remains Unchanged
Despite the new compliance requirements, the FBR has retained a 0 per cent customs duty on skimmed milk powder imports.
The continuation of the duty exemption is expected to support manufacturers involved in producing specialised food products used in nutrition and humanitarian programmes across Pakistan.
Officials said the concession reflects the government’s commitment to supporting public health initiatives and ensuring access to essential nutritional products.
Conditions for Ready-to-Use Supplementary Food
Under the revised rules, manufacturers importing skimmed milk powder for the production of Ready-to-Use Supplementary Food (RUSF) must fulfil specific requirements.
The importer must be registered under the Sales Tax Act, 1990, and must also be authorised by the United Nations World Food Programme (UNWFP).
In addition, imports will be subject to annual quota limits determined by the Input Output Co-efficient Organisation (IOCO).
Requirements for Therapeutic Food Production
For manufacturers producing Ready-to-Use Therapeutic Food (RUTF), the FBR has introduced similar conditions.
Importers must be registered under the Sales Tax Act, 1990, and must be authorised by the United Nations Children’s Fund (UNICEF).
These imports will also be governed by annual quotas established by the IOCO to ensure appropriate utilisation of duty-free raw materials.
Focus on Nutrition and Humanitarian Programmes
The FBR said the new conditions are intended to ensure that imported skimmed milk powder is directed towards approved nutrition programmes rather than commercial use.
RUSF and RUTF products are widely used to address acute malnutrition, particularly among children, and play an important role in emergency relief and food security initiatives.
By linking duty-free imports to recognised international organisations and quota controls, authorities aim to improve oversight and transparency within the sector.
Effective from July 1, 2026
The revised import framework will come into force on July 1, 2026, alongside other fiscal measures introduced through the Finance Bill 2026.
Industry analysts said the decision strikes a balance between supporting nutrition-focused manufacturing and ensuring that concessional imports are utilised for approved humanitarian and public health purposes.
