New 2% additional customs duty imposed on 2,200 items  M Haris

The Federal Board of Revenue (FBR) has imposed a 2% additional customs duty (ACD) on the import of 2,200 items and increased regulatory duties (RD) on 657 luxury and non-essential items starting July 1, 2024. 

As per a news report, the new 2% ACD applies to items previously subjected to zero percent duty. This duty will vary between 2%, 4%, 6%, and 7% depending on the goods specified in SRO 929(I)/2024.

Regulatory duties ranging from 5% to 55% have also been imposed on hundreds of items. 

Significant categories include cars, jeeps, and light commercial vehicles, with a 7% ACD on imports in CKD condition exceeding 1,000 cc. 

Perfumes and sprays will face a 20% RD, watches and sunglasses will have a 30% RD, imported dairy products will see a 20-25% RD, and natural honey and imported fruits will have a 30-25% RD. 

Cosmetics and shaving cream will face a 55% and 50% RD respectively, while clothing and jewelry will have a 10-45% RD depending on the item. 

Food items will have up to a 55% RD on various vegetables and confectioneries.

Some imports are exempted from the additional customs duty, including seeds and spores for sowing, motor spirit, high-speed diesel oil, liquefied natural gas, polymers in primary forms, cotton, solar panels, and fertilizers. 

Additionally, certain machinery and imports under specific schemes and notifications are also exempt. Specific exemptions include imports under Notification No. S.R.O. 678, the Temporary Importation Scheme, and imports by Exploration and Production Companies for offshore projects. 

Electric vehicles (2-3 wheelers) are exempted till June 30, 2025, as well as cars, jeeps, and light commercial vehicles in CKD condition up to 1,000cc, and vehicles in CBU condition up to 850cc.

The new duties and exemptions are effective from July 1, 2024, aiming to balance the government’s revenue needs while managing import expenses and encouraging the use of local resources.