The Federal Board of Revenue (FBR) has laid down a detailed legal framework for the re-importation of goods produced or manufactured in Pakistan under Section 22 of the Customs Act, 1969, as updated for tax year 2026.
These provisions are crucial for exporters, manufacturers, and customs clearing agents dealing with returned or rejected exports.
General Rule for Re-Importation
Under Section 22, if goods manufactured or produced in Pakistan are exported and later re-imported, they are generally treated like foreign goods. This means they become liable to customs duties, taxes, and restrictions applicable to similar imported goods of the same kind and value.
However, the law also provides important reliefs where specific conditions are met.
One-Year Relief for Re-Imported Pakistani Goods
Goods may qualify for preferential treatment if all the following conditions are fulfilled:
• The goods are re-imported within one year of export
• The goods are consigned to the same person in whose name they were exported
• The goods have not undergone any processing after export
• Approval is granted by a customs officer not below the rank of Assistant Collector
Duty Treatment in Different Scenarios
The applicable customs treatment depends on how the goods were exported:
1. Goods Exported With Rebates or Drawbacks
If the exporter had received rebate, refund, or drawback of customs duty, federal excise duty, or any federal or provincial tax at the time of export, re-importation is allowed on payment of customs duty equal to the refunded or rebated amount.
2. Goods Exported Under Bond (Without Duty or Taxes)
Where goods were exported in bond, without payment of customs duty or taxes on imported or indigenous inputs, re-importation is allowed on payment of aggregate duties and taxes that were earlier waived. These are calculated at the rates prevailing at the time and place of re-importation.
This includes:
• Customs duty on imported raw materials
• Federal Excise Duty on indigenous materials or finished goods
• Any other federal or provincial tax applicable
3. All Other Cases
In situations not covered above, eligible goods may be re-imported without payment of customs duty, subject to verification and approval by customs authorities.
Temporary Export and Re-Import of Machinery (Section 22A)
Section 22A provides special relief for imported plant and machinery that are temporarily exported and later re-imported. If such machinery:
• Has not undergone alteration, renovation, or refurbishment, and
• Meets the terms and conditions prescribed by the FBR
then it may be re-imported duty-free, offering significant cost savings for industrial operators.
Why This Matters for Businesses
Understanding the re-importation procedure helps exporters:
• Avoid unnecessary customs duties
• Recover rejected or defective exports lawfully
• Plan bonded exports and temporary exports efficiently
• Ensure compliance with FBR rules for tax year 2026
Key Takeaway
While re-imported Pakistani goods are normally treated as imports, Section 22 and 22A provide practical reliefs where exporters meet strict timelines and documentation requirements. Proper planning and compliance can significantly reduce duty exposure.
Disclaimer
This article is for general informational purposes only and is based on the Customs Act, 1969 as updated for tax year 2026. It does not constitute legal or tax advice. Readers should consult official FBR notifications or a qualified customs or tax professional before making compliance or import-export decisions.