Revised tariff schedule lowers duty on luggage, handbags and travel accessories from July 1, 2026
The Federal Board of Revenue (FBR) has reduced the regulatory duty (RD) on the import of suitcases, trunks, handbags and a wide range of travel accessories as part of the federal government’s tariff rationalization measures for the fiscal year 2026-27.
The revised customs duty structure came into effect on July 1, 2026, following the issuance of a new Statutory Regulatory Order (SRO) that amends the regulatory duty rates applicable to products falling under the Pakistan Customs Tariff (PCT).
According to the updated tariff schedule, the regulatory duty on imported trunks, suitcases and various categories of bags covered under PCT Code 42.02 has been reduced to 16 percent from 20 percent. The move represents a 20 percent reduction in the regulatory duty rate, aimed at easing import costs and improving market accessibility for these products.
The revised duty applies to a broad range of imported luggage and carrying accessories. These include trunks, suitcases, vanity cases, executive cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers.
In addition, the reduced regulatory duty covers travelling bags, insulated food and beverage bags, toilet bags, rucksacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder boxes, cutlery cases and other similar products.
The concession is applicable to items manufactured from leather, composition leather, plastic sheeting, textile materials, vulcanized fibre, paperboard, or products wholly or mainly covered with such materials. These goods are widely used by consumers, travelers, students and professionals across the country.
The reduction in regulatory duty is expected to lower the import cost of luggage and related accessories, potentially providing relief to importers, wholesalers and retailers. Industry stakeholders believe the revised tariff may also enhance product availability and increase competition in the domestic market.
The latest adjustment is part of the government’s broader customs and tariff reforms introduced under the fiscal year 2026-27 budget framework, which seeks to streamline import duties, support trade activities and improve overall economic efficiency.