Karachi, February 14, 2025 – The Federal Board of Revenue (FBR) has provided clarification regarding dutiable goods, specifying the categories of goods on which customs authorities are mandated to collect duties and taxes upon importation.
The guidelines are laid out in Section 18 of the Customs Act, 1969.
According to the FBR, dutiable goods include:
1. Goods Imported into Pakistan: Any items brought into the country from abroad are subject to customs duties as specified in the First Schedule or under other applicable laws.
2. Goods Transshipped or Transported Between Customs Stations: Goods arriving from a foreign country to one customs station and subsequently moved to another without duty payment are also dutiable.
3. Bonded Goods Moved Between Customs Stations: Goods transported in bond between customs stations fall under the ambit of dutiable goods.
Additional Provisions under Section 18
The Customs Act also prescribes additional measures concerning customs duties:
• Special Duty Rates: Sub-section 1A empowers the government to impose custom duties at rates specified in the Fifth Schedule, subject to conditions and restrictions as detailed therein.
• Export Duties: Sub-section 2 categorically states that no export duty shall be levied on goods exported from Pakistan.
• Regulatory Duties: Under sub-section 3, the federal government can, via official notification, impose regulatory duties on imports or exports. These duties can reach up to 100% of the determined value of goods, with specific conditions outlined for their application.
• Additional Customs Duties: Sub-section 5 allows the government to levy an additional customs duty on specified imported goods, up to 35% of their value. However, the cumulative customs duty, including additional levies, must comply with the limits established in Pakistan’s multilateral trade agreements.
The FBR highlighted that these duties are calculated based on the value of goods as assessed under Sections 25 and 25A of the Customs Act. The imposition of these duties is effective from the date specified in the relevant official notification, irrespective of the notification’s publication date.
By explaining these provisions, the FBR aims to enhance transparency regarding customs duties and facilitate better compliance among importers. This clarification is particularly significant for businesses engaged in cross-border trade, ensuring adherence to legal requirements and contributing to the nation’s revenue generation.