The Federal Board of Revenue (FBR) Monday issued customs notifications to reduce regulatory duties and Additional Customs Duties (ADCs) on the import of thousands of items under customs tariff rationalization plan from July 1, 2025.
The FBR has issued SRO.1151(I)/2025 and SRO.1152(I)/2025 on Monday.
The SRO.1151(I)/2025 is related to the levy additional customs duty on import of goods and SRO.1152(I)/2025 deals with the imposition of regulatory duty on imported items.
The RDs have been reduced on the import of 1,022 items. The additional customs duty would be applicable on the import of specified goods. No RD will be applicable on the import of goods covered under customs duty slabs of zero percent, 5 percent and 10 percent.
Two percent ACD will be charged on:
Goods under the 15 percent tariff slab
Goods imported under SRO.655(I)/2006 and SRO.656(I)/2006
Goods imported under specified PCT codes
Cars, jeeps, and light commercial vehicles in CKD condition exceeding 1,000cc
Heavy commercial vehicles in CKD condition
Six percent ACD will be charged on:
Goods under the 30 percent tariff slab
Goods under higher slabs, including slabs of specific rates
Value of goods for ACD purposes will be as determined under Section 25 or Section 25A of the Customs Act, 1969.
Exemptions from ACD under SRO.1151(I)/2025:
Import of plant and machinery used in manufacturing/production under Chapters 84 and 85
Import under Chapter 99 of the First Schedule
Import under the Fifth Schedule to the Customs Act, excluding specified items
Import under Baggage Rules, 2006
Import under:
SRO.577(I)/2005 (dated June 6, 2005)
SRO.565(I)/2006
SRO.693(I)/2006
Import under Temporary Importation Scheme
Imports by E&P companies, their contractors and service companies for offshore projects under condition (vii) of SRO.678(I)/2004
Import of cars, jeeps, and light commercial vehicles in CKD condition up to 1,000cc
Import of vehicles in CBU condition up to 850cc
Imports under PCT codes:
8703.8030
8711.6040
8711.6060
RD phasing out plan over five years:
Maximum RD rate to be reduced from 90 percent to 50 percent
Complete RD removal on 554 raw materials and intermediary goods
Reduced RD on 602 goods
Exemptions from RD under SRO.1152(I)/2025:
Imports under:
SRO.678(I)/2004
Chapter 99 of the First Schedule to the Customs Act, 1969
Fifth Schedule to the Customs Act, 1969
Temporary Importation Scheme
Import of:
Special steel round bars and rods of non-alloy steel (specified diameter)
Grain and non-grain oriented electrical steel sheets
Rubber Apron and Cots (PCT code 4016.9990)
Vehicles in CBU condition imported by new entrants
Input materials used for manufacturing auto parts by local vendors under SRO.655(I)/2006
Five percent RD will apply to:
CKD/SKD kits of home appliances listed in the table (if not specified separately)
Overall tariffs to be reduced from 20.19 percent to 9.70 percent over five years
Customs duty slabs to be revised:
From five slabs to four slabs: 0 percent, 5 percent, 10 percent, and 15 percent
Maximum customs duty to be capped at 15 percent over the next five years
All Additional Customs Duties (ACDs) to be eliminated in four years
ACD reductions will cover 7,500 tariff lines
Complete exemption for items under lower slabs
Auto sector ACDs:
Subject to the Auto Industry Development and Export Policy (AIDEP)
Will be phased out gradually starting July 1, 2026
Regulatory Duties (RDs):
To be fully eliminated in five years
Changes will follow annual RD reduction targets
Relevant notifications to be issued starting July 1, 2025
Fifth Schedule of the Customs Act will be phased out gradually in five years