If you are importing to Pakistan, you must remember that you need to pay customs duty for any product. If figuring out the duty and other relevant taxes seems confusing to you, others feel the same. Many times, people get confused when their shipment is delivered and there are unexpected costs. Customs duty in Pakistan is calculated using a formula, so once you figure this out, your task of calculating costs becomes much simpler.

In this article, you will discover how customs duty works in Pakistan, what every tax covers, and how to determine a product’s duty rate.

Step One: Understanding the Assessable Value (CIF)

Customs duty in Pakistan is calculated starting from the CIF of the goods you are importing. The name CIF stands for the costs, insurance, and freight. This refers to the total worth of goods after their customs duties and taxes have been paid.

We should take a closer look at this:

• Cost is the price of the goods (also known as FOB – Free on Board).
• Insurance covers the cost of transporting the item (often estimated at 1% of the cost if not declared).
• Freight is the shipping fee from the supplier to a Pakistani port.

Once we have the CIF in USD or any foreign currency, it is changed to PKR at the State Bank of Pakistan’s exchange rate for the day the GD is recorded on WeBOC.

All taxes and duties in Pakistan are calculated based on the PKR amount derived from the converted CIF value.

Step Two: Understanding the Types of Duties and Taxes

When the assessable value in PKR is obtained, you apply the following taxes in this order:

1.   Customs Duty (CD)

Custom duty is the most common type of import tax. In 2025, many items imported to Pakistan will fall into the 0%, 5%, 10%, or 15% tariff brackets. The proper rate is set according to the product’s PCT (Pakistan Customs Tariff) Code, which sorts each importable item.

2.   Additional Customs Duty (ACD).

Some types of goods are treated according to ACD. Different types of insurance can have rates ranging from 1% to 7%. The FBR notifies the rates in the Statutory Regulatory Orders (SROs) each year.

3.   Regulatory Duty (RD)

The import of luxury or extra goods is managed through the RD. This regulation is not always required for all items. Mobile phones don’t usually have RD, but with used cars or cosmetics, the rate could be raised to 60%.

4.   Sales Tax

Sales tax will be charged at an 18% rate on the total sales value of:

CIF + CD + ACD + RD

5.   Additional Sales Tax (AST).

If you are importing for business purposes, you will have an additional 3% AST on top of the 18%, which makes the total sales tax 21%.

6.   Income Tax at the Import Stage

This type of tax is considered an advanced form of income tax. The interest rates are as follows:

• The amount for companies (filer) is 6%.
• The filing amount for individuals is 9%.
• The rate is higher for non-filers

All taxes are based on CIF+CD+ACD+RD.

Step Three: How to Find Your Product’s PCT Code and Rates

To determine your product’s exact duty, you must determine its PCT code. Customs uses this 8-digit code to sort all imported goods.

Here is how to locate it:

• Go to the FBR Customs Tariff Portal: https://www.fbr.gov.pk/?aspxerrorpath=/customs-tariff
• You can search by the name of the product you need or by the category it belongs to.
• Note the CD, ACD, and RD rates that appear on the list.

You can also use a WeBOC Duty Calculator.
 https://www.weboc.gov.pk/Shared/ItemGeneralDutyCalculator.aspx

Step Four: Exemptions and Special Concessions

Pakistan has free trade agreements (FTAs) with China, Malaysia, and members of the D-8. Under these agreements, some goods can be imported with a reduced or no customs duty.

This benefit can be accessed by:

• You should provide a valid Certificate of Origin that the exporting country has issued.
• The goods should comply with the Rules of Origin.

Moreover, overseas Pakistanis can receive favorable baggage treatment, and those who import machines for export processing and IT equipment for startups are allowed duty exemptions.

Penalties for Misdeclaration

Providing incorrect information about the product description, its value, or PCT code can result in:

• Heavy fines
• Confiscation of goods.
• Criminal proceedings under customs law

Pakistan Customs investigates all such declarations using valuation rulings and Risk Management System checks. These declarations are primarily concerned with electronics, luxury items, and automobiles. Ensure you declare all of your imports truthfully and keep all your invoices and receipts.

Let Sidekick Handle Your Customs Duty Hassles in Pakistan

If dealing with Pakistani customs seems like too much, Sidekick is there to make it easier for you. Don’t worry about how your customs duties on imported personal items, machinery, or other shipments are calculated and paid in Pakistan; Sidekick will ensure this is done correctly and at the right time.

Sidekick, as your importing partner, can handle things like managing your goods’ PCT code and helping with taxes and paperwork. If you find personal or business duties challenging, leave that to Sidekick so you can continue to focus on your achievements.

Conclusion

Due to the FBR reforms, it is now much easier to calculate customs duty in Pakistan. In 2025, products are in only a few duty slabs, and calculating the final cost with online tools becomes much easier.

If you learn about the CIF value and your product’s class code and operate each import step by step, you should not run into issues at the port. Knowledge is your safety measure, regardless of whether you are alone or in business, and you are importing a phone or a car.

The official FBR website and a licensed customs clearing agent are the best places to seek valid information.