Customs Duty Rates Pakistan 2026: Import Tariff Guide

By Olympic AgenciesLast updated: 22 July 2026

Quick Answer

Pakistan's customs duty rates in 2026 vary by HS code classification, with most goods falling under 0-20% customs duty plus additional taxes including sales tax (typically 17-18%) and withholding tax. Agricultural machinery benefits from a full customs duty exemption under the 2026-27 budget for eligible HS headings. Always confirm the current rate for your specific HS code before importing, as rates change with the annual federal budget and SROs.

Key facts
Customs duty range	0-20% depending on HS code classification
Sales tax on imports	17-18% on the duty-paid value for most goods
Agri machinery exemption	Full CD, ACD, RD exemption on eligible HS headings under 2026-27 budget
FTA duty reductions	Reduced rates available for China, Malaysia, and SAFTA-origin goods
Duty base	Calculated on CIF value — cost + insurance + freight to Pakistani port

Understanding Pakistan's customs duty structure is essential for calculating the true landed cost of imported goods. The duty payable depends on the product's HS code, its declared CIF value, the country of origin, and any applicable exemptions or concessions. This guide explains how duties are structured in 2026 and how to calculate your total import cost.

Understanding Pakistan's Customs Tariff System

Pakistan applies customs duties under the Customs Act 1969 using an 8-digit Harmonized System code classification. Every product entering Pakistan is assigned an HS code, and the First Schedule to the Customs Act specifies the applicable customs duty rate for each code.

The duty calculation follows this sequence:

Customs Duty (CD). The primary duty, calculated as a percentage of the CIF value. Rates range from 0% to 20% for most agricultural and industrial goods, with some luxury items facing higher rates.
Additional Customs Duty (ACD). A flat 2% surcharge applied on the CIF value, in addition to the customs duty.
Regulatory Duty (RD). Imposed on specific products through SROs for trade-policy reasons. Not all products carry regulatory duty.
Sales Tax. Calculated on the duty-paid value — CIF value plus CD, ACD, and RD. The standard rate applies unless a lower rate is specified for the product category.
Withholding Income Tax. Calculated on the CIF value plus duties at rates that vary by importer status.

A consignment with a CIF value of PKR 10,000,000 at a 3% customs duty rate would pay: CD PKR 300,000 + ACD PKR 200,000 + Sales Tax on PKR 10,500,000 + Withholding Tax. The total duty bill depends on the exact rates applicable to your HS code and importer status.

Customs Duty Rates by Product Category

Product Category	Typical CD Range	Notes
Agricultural machinery	0% (exempt)	Full exemption on eligible HS headings under 2026-27 budget
Seeds and planting material	0-3%	Low rates to support agriculture
Fertilizers	0-3%	Often reduced further by SRO during planting seasons
Industrial machinery	0-5%	Varies by HS heading; some benefit from FTA concessions
Chemicals (industrial)	0-10%	Depends on product type and end use
Pharmaceuticals	0-10%	API often lower than finished products
Food products	5-20%	Higher on processed foods to protect domestic industry
Electronics	5-20%	Varies by product type

Additional Taxes on Imports

Beyond customs duty, importers must account for:

Sales Tax. The standard rate applies to most imports. Some agricultural inputs qualify for reduced rates. Sales tax is charged on the duty-paid value, meaning each layer of duty increases the tax base.
Withholding Income Tax. The rate depends on whether the importer is a company (higher rate) or individual (lower rate), and whether they are an active tax filer (lower rate for filers).
Provincial taxes. Some provinces levy additional taxes on specific goods, though these are typically applied post-clearance.

How to Calculate Total Import Cost

To calculate the total landed cost of an imported consignment:

Determine the CIF value — the supplier's price plus freight and insurance to the Pakistani port.
Classify the goods under the correct 8-digit HS code.
Look up the customs duty rate in the First Schedule and check for any active SRO modifying the rate.
Calculate CD (CIF × CD rate) and ACD (CIF × 2%).
Check if regulatory duty applies to this HS code.
Calculate sales tax on the duty-paid value (CIF + CD + ACD + RD).
Add withholding tax at the applicable rate.
Add port and terminal charges, agent fees, and inland transport costs.

This calculation should be performed before the shipment departs so there are no surprises at the port. Olympic Agencies provides customs clearance services with full landed cost estimates.

Duty Exemptions and Concessions

Pakistan offers several pathways to reduce import duty:

Agricultural machinery exemption (2026-27 budget). Customs duty, ACD, and RD fully exempted on machinery classified under specific HS headings in Chapters 84 and 87. Requires certification from the Ministry of National Food Security and Research.
Free Trade Agreements. China-Pakistan FTA Phase II covers thousands of tariff lines at zero or reduced duty. Malaysia-Pakistan FTA covers palm oil, electronics, and chemicals. SAFTA covers intra-regional trade among South Asian countries.
Export Facilitation Scheme. Allows duty-free import of raw materials and components used in manufacturing goods for export. The importer must export the finished product and reconcile imports against exports.
Special Economic Zones. Enterprises within designated SEZs benefit from customs duty exemptions on imported capital goods and production inputs, under the SEZ Act 2012.

FTA Duty Reductions

To claim an FTA duty concession, the importer must present the specific FTA certificate of origin at the time of filing the goods declaration. The certificate must be the correct form for the specific FTA — a generic chamber of commerce certificate will not qualify. The concession must be claimed at filing; it cannot be applied retroactively after the duty has been paid.

For a complete walkthrough of the clearance process from documentation to release, see our customs clearance process guide. Olympic Agencies handles HS classification, duty calculation, and FTA claims for importers across Pakistan under our customs clearance services.

Need duty rate confirmation? Contact us for HS classification and landed cost calculation.

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Frequently Asked Questions

How do I find the customs duty rate for my product?+

Look up your product's 8-digit HS code in the Pakistan Customs Tariff (First Schedule to the Customs Act 1969). The First Schedule lists the applicable customs duty rate for each HS code. If an SRO has changed the rate for your product category, the SRO rate overrides the First Schedule rate. A licensed clearing agent can confirm the current rate for your specific product.

What additional taxes apply beyond customs duty?+

Additional taxes include Additional Customs Duty (typically 2% of CIF value), Regulatory Duty on specific products imposed through SROs, Sales Tax (17-18% on the duty-paid value), and Withholding Income Tax (rates vary by importer status). The full landed cost includes all of these plus terminal handling, examination, and agent fees.

Are there any duty exemptions available in Pakistan?+

Yes. The 2026-27 federal budget provides full customs duty, ACD, and RD exemption for agricultural machinery under specific HS headings. Free Trade Agreements with China, Malaysia, and SAFTA members also provide reduced rates. The Export Facilitation Scheme allows duty-free import of raw materials for export-oriented manufacturing. Special Economic Zones offer additional concessions.

How often do customs duty rates change in Pakistan?+

Tariff rates can change through the annual federal budget (June-July), through Statutory Regulatory Orders issued during the year, and through FTA negotiations. A rate that applied last quarter may not apply this quarter. Always verify the current rate before importing.

Olympic Agencies

Clearing agricultural cargo - seeds, fertilizers, and machinery - at Karachi Port and Port Qasim since 1982. Members of PIFFA and the Chamber of Commerce.