New customs tariff reduces regulatory duty on instant coffee, retail packs and coffee extracts from July 1, 2026
The federal government has reduced the regulatory duty (RD) on various categories of coffee imports by up to 38 percent as part of the customs tariff reforms introduced for the fiscal year 2026-27.
The revised duty structure became effective from July 1, 2026, following the issuance of a new Statutory Regulatory Order (SRO) by the Federal Board of Revenue (FBR).
The move is aimed at rationalizing import duties on coffee products and related preparations, potentially lowering import costs for businesses while improving the availability of coffee products in Pakistan. The revised rates apply to different categories of coffee imports classified under the Pakistan Customs Tariff (PCT).
According to the latest SRO issued by the FBR, the regulatory duty on extracts, essences and concentrates of coffee, tea or mate, along with preparations based on these products, roasted chicory, other roasted coffee substitutes, and their extracts and concentrates classified under PCT Code 21.01 (excluding PCT Codes 2101.1110 and 2101.1120), has been reduced from 30 percent to 20 percent.
The reduction represents a decline of approximately 33 percent compared to the regulatory duty applicable during the previous fiscal year. Importers dealing in these products are expected to benefit from lower import costs under the revised tariff schedule.
The FBR has also revised the regulatory duty on instant coffee imported in bulk under Pakistan Customs Tariff Code 2101.1110. The duty has been reduced from 15 percent to 12 percent, reflecting a 20 percent decrease from the previous rate.
A more substantial reduction has been announced for instant coffee imported in retail packs under PCT Code 2101.1120. The regulatory duty has been lowered from 32 percent to 20 percent, marking a decline of approximately 37.5 percent, making it the largest reduction among the revised coffee duty categories.
The revised customs duty rates form part of the government’s broader tariff rationalization strategy for FY2026-27, which includes adjustments to regulatory duties on several imported products.
The changes are intended to simplify the tariff regime, facilitate trade, and reduce the cost of selected imported goods for businesses operating in Pakistan.
With the new regulatory duty rates now in force, importers of coffee and coffee-based products are expected to adjust their procurement strategies in line with the updated customs tariff applicable from July 1, 2026.