Importing into Pakistan means dealing with a tariff that is being reformed year by year. For foreign companies shipping goods in, and for investors importing machinery or inputs for a local plant, the question is how much duty applies and how to find out. This guide explains how the system is built, what the 2026-27 budget changed, and how clearance is filed.
It is an orientation based on official sources, not legal or customs advice. Duty rates depend on the exact tariff code of the goods and change by notification, so always confirm the rate for your product with a licensed customs agent or the Customs authorities before shipping.
The duties and taxes involved
| Charge | What it is |
|---|---|
| Customs duty (CD) | The main duty, set by tariff line in the Customs Tariff. |
| Additional customs duty (ACD) | A supplementary duty, applied by tariff line, which the 2026-27 budget reduces on thousands of lines. |
| Regulatory duty (RD) | A protective duty, which the budget caps and reduces. |
| Sales tax | Ordinarily 18% on the value of goods, unless exempt or taxed at a reduced rate (PwC, other taxes). |
Each tariff line is identified by its Pakistan Customs Tariff (PCT) code, and the duties attach to that code. Finding the correct code for the goods is the first step in working out the cost. The Customs Act 1969 is the governing law, and the Federal Board of Revenue (FBR) administers it.
What the 2026-27 budget changed
The FBR’s salient features for the 2026-27 budget describe a tariff rationalisation under the National Tariff Policy 2025-30 (FBR, Salient Features of Budget 2026-27):
- Customs duty: existing duty of 20% was cut to 15% and 10%, existing 15% and 10% to 10% and 5%, and existing 5% to 0%, for input goods of different industrial sectors on 92 tariff lines.
- Additional customs duty: cut from 6% to 4% on 449 tariff lines, from 4% to 2% on 2,107 tariff lines, and eliminated from 2% to 0% on 569 tariff lines.
- Regulatory duty: rates above 20% were capped at 20% for 359 tariff lines, rates between 2.5% and 20% were cut by 20% across 1,347 tariff lines, and rates of 2.5%, 2% and 1% were cut by 20% or eliminated on 208 tariff lines.
- Exemptions: entries were deleted from the Fifth Schedule where the concessionary duty equals or exceeds the general tariff, customs duty on specified cancer-related active pharmaceutical ingredients was exempted, customs duty, additional customs duty and regulatory duty on agricultural machinery were exempted, and duty on specialised construction vehicles was cut from 20% to 10%.
- Electric vehicles: the sales tax exemption on imports of completely knocked down kits for electric vehicles was extended to 30 June 2027.
- Process: 15 new tariff codes were created, legal cover was given to non-intrusive cargo scanning, faceless adjudication was introduced, and the Board was authorised to rationalise penalties for delayed filing of goods declarations and clearance of goods at ports.
How clearance is filed
Customs declarations are filed electronically. WeBOC remains the core Customs management system, and it is integrated with the Pakistan Single Window (PSW), which describes itself as the primary interface for end-to-end trade facilitation. Where regulatory requirements apply to the goods, submission through the PSW’s Single Declaration is mandatory. Where none apply, the trader may choose to file through either WeBOC or the PSW (Pakistan Single Window, WeBOC to PSW).
Traders must be registered before they can file. The FBR registers traders by category, including commercial importers, exporters, manufacturers and customs agents, and its checklists ask for items such as a National Tax Number and sales tax registration (FBR, customs registration). Requirements change, so confirm the current checklist on the FBR and PSW sites. Many foreign companies use a licensed customs agent for clearance.
A practical sequence
- Identify the PCT code of each product.
- Check the current rates of customs duty, additional customs duty, regulatory duty and sales tax for that code, and any exemption that applies.
- Check whether the goods need approval from a regulator, which decides whether PSW filing is mandatory.
- Register the importing entity with Customs, or appoint a customs agent.
- Price the landed cost with duties and taxes included before you commit to a purchase order.
For a business still deciding how to enter the market, our regulatory checklist and our guide to taxes for foreign companies cover the surrounding questions.
How PIVRA can help
PIVRA can help you work out what applies to your product. Our market entry roadmaps and registration, licensing and approvals guidance set out which authorities and approvals apply and in what order, from official sources, and expert consultations connect you with Pakistani specialists. Request a quote.