SRO 1063(I)/2026 introduces revised additional customs duty structure effective from July 1, 2026
ISLAMABAD: The Federal Board of Revenue (FBR) has notified revised additional customs duty (ACD) rates on the import of goods for the fiscal year 2026-27 through SRO 1063(I)/2026, effective from July 1, 2026.
The notification has been issued under sub-section (5) of Section 18 of the Customs Act, 1969, superseding SRO 1151(I)/2025 dated June 30, 2025.
Revised additional customs duty rates
Under the new notification, the federal government has prescribed the following rates of additional customs duty:
• 2% additional customs duty on goods falling under the 20% customs tariff slab.
• 4% additional customs duty on specified goods classified under the 20% tariff slab, including certain petroleum products, plastics, chemicals, paper products, machinery and other notified tariff lines.
• 2% additional customs duty on specified imports under various Pakistan Customs Tariff (PCT) codes and on goods imported under SROs 655(I)/2006 and 656(I)/2006.
• 10% additional customs duty on goods falling under the 25% tariff slab and higher tariff slabs, as well as goods subject to specific customs duty rates.
• 6% additional customs duty on specified alcoholic beverages and related products falling under Chapter 22 of the Pakistan Customs Tariff.
• 2% additional customs duty on specified edible oils and oilseeds, including soybean, palm, sunflower and rapeseed oils, as well as completely knocked down (CKD) kits of cars, jeeps and light commercial vehicles exceeding 1,000cc and heavy commercial vehicles in CKD condition.
Customs valuation
The notification provides that the value of imported goods for the purpose of additional customs duty shall be determined under Section 25 or Section 25A of the Customs Act, 1969, as applicable.
Major exemptions
The FBR has also specified several categories of imports that will remain exempt from additional customs duty. These include:
• Plant and machinery imported for manufacturing or production and classified under Chapters 84 and 85 of the Customs Act.
• Goods imported under Chapter 99 of the First Schedule to the Customs Act.
• Most imports covered under the Fifth Schedule to the Customs Act, subject to specified exclusions.
• Imports under the Baggage Rules, 2006.
• Imports under various concessionary SROs, including SROs 577(I)/2005, 565(I)/2006, 693(I)/2006 and the Temporary Importation Scheme under SRO 492(I)/2009.
• Imports by exploration and production companies and their contractors for offshore petroleum projects under specified conditions.
• Imports of CKD cars, jeeps and light commercial vehicles up to 1,000cc, as well as completely built-up (CBU) vehicles up to 850cc.
• Imports under specified Pakistan Customs Tariff codes relating to certain electric vehicles and motorcycles.
The revised additional customs duty regime will come into force from July 1, 2026, and forms part of the government’s fiscal measures for FY2026-27 aimed at rationalising the import tariff structure and supporting revenue collection.
