Karachi, June 29, 2025 – In a move aimed at facilitating small-scale imports and promoting ease of doing business, the federal government has introduced a key amendment to the Customs Act, 1969 through the recently passed Finance Act, 2025.
Under the revised provisions, customs duty exemptions will now apply specifically to parcels or goods imported via courier or postal services, provided their value does not exceed Rs1,000.
The relevant amendment has been made to Section 19C of the Customs Act, which previously allowed a broader exemption for imported goods valued up to Rs5,000, regardless of the mode of shipment. However, with the revised clause, the exemption is now limited to consignments sent through post or courier services where the individual parcel value is no more than Rs1,000.
The amended section now reads: “Where the value of imported goods through post or courier does not exceed one thousand rupees, no duties and taxes shall be demanded, subject to such conditions and restrictions as may be prescribed by the Board under the rules.”
This amendment aims to streamline Customs procedures for low-value shipments, reduce administrative burden, and encourage legal importation of small personal or commercial items through recognized courier channels. Officials from Pakistan Customs note that the measure is intended to align domestic regulations with global best practices, where many countries exempt low-value shipments to improve delivery efficiency and reduce processing costs.
However, some trade analysts point out that reducing the threshold from Rs5,000 to Rs1,000 may affect certain small importers who previously benefited from a higher exemption limit. The decision places emphasis on the use of courier or postal services to ensure traceability and control, while discouraging under-invoicing or smuggling through informal channels.
Customs authorities are expected to issue detailed rules in the coming weeks, outlining the procedural requirements and compliance obligations for availing this exemption. Businesses relying on cross-border e-commerce and consumers frequently receiving parcels through courier services will be the primary beneficiaries of this regulatory adjustment.
In summary, the 2025 reforms reflect a strategic shift in Pakistan’s Customs policy framework, balancing trade facilitation with improved oversight of import channels.