Importers and exporters

Customs duty, goods declarations, valuation, advance tax at import and export proceeds. Each answer below explains one point in plain words, works through an example, and links the exact section of the law it relies on.

• What is the 3% value addition sales tax charged on commercial imports, and who is exempt from it?The Twelfth Schedule to the Sales Tax Act adds 3% value addition tax at import on top of 18% sales tax, with exclusions for manufacturers, phones and more.
• What must I declare in my baggage at a Pakistani airport, and what happens if customs detains it?Section 139 requires a declaration of baggage contents. Concealed currency or gold is treated as smuggling, and section 142 lets you leave items for return.
• How do I appeal a customs order, and is it the Collector (Appeals) or the Appellate Tribunal?Orders by officers below Additional Collector go to the Collector (Appeals) within 30 days. Higher orders go to the Appellate Tribunal within 45 days.
• How do I claim a lower customs duty rate on goods from a free trade agreement country such as China?Section 18C of the Customs Act: a preferential FTA duty rate must be claimed at importation with proof of origin, or the standard First Schedule rate applies.
• Can customs seize my goods, and do I get a show cause notice before they are confiscated?Customs can seize goods liable to confiscation, but section 180 requires a show cause notice first, and section 168 returns goods if none comes in two months.
• Which duties and taxes are charged when I import goods into Pakistan, for example from China?One goods declaration can carry customs duty, regulatory and additional customs duty, 18% sales tax, 3% value addition tax and section 148 income tax at import.
• Is there a duty-free limit for small parcels ordered online from abroad through post or courier?Section 19C waives duties on post or courier imports up to Rs. 1,000, but the Customs Rules still say Rs. 5,000. What each says and how parcels are cleared.
• How can an exporter import or buy inputs without duty and sales tax under the Export Facilitation Scheme?How EFS 2021 in the Customs Rules lets exporters acquire inputs free of duty and taxes: who qualifies, authorization, utilization periods and domestic sales.
• Can I get confiscated goods back by paying a fine under section 181?Section 181 lets the officer who confiscates goods offer the owner a fine in lieu of confiscation, payable on top of duty, taxes and any penalty imposed.
• When must I file a goods declaration for imported goods, and can I amend it after clearance?Section 79 gives ten days from arrival to file a goods declaration. Section 29 bars changing value, quantity or description once goods leave the customs area.
• How does customs decide the value of my imported goods if it does not accept my invoice price?Section 25 starts from the invoice price, then falls back to identical goods, similar goods, deductive, computed and fall-back values, and what customs can ask.
• How do I claim duty drawback on exported goods, and when is drawback refused?Customs duty drawback in Pakistan: seven-eighths back on re-exported goods under section 35, drawback on inputs under section 37, and the section 39 refusals.
• How is the correct HS code (PCT heading) decided for my product, and can I get an advance ruling?Duty follows the First Schedule tariff heading. How classification disputes are settled under section 18E and how a section 212B advance ruling binds Customs.
• How much income tax is collected at import on a mobile phone brought into Pakistan?Section 148 collects a fixed rupee amount per imported mobile phone, from Rs. 70 to Rs. 11,500 by C&F value in US dollars and CBU or CKD form, in tax year 2027.
• Is section 148 import tax a minimum tax, and why does a commercial importer pay more than a manufacturer importing for its own use?Section 148(7) makes import tax a minimum tax except for industrial undertakings importing for own use, and Part II sets higher rates for commercial importers.
• What happens if customs finds a misdeclaration in my goods declaration, and is an honest mistake treated like deliberate fraud?The Customs Act treats a knowing false statement, an honest error and fiscal fraud differently, with separate penalty ceilings in the section 156 table.
• What is the punishment for smuggling under the Customs Act?Smuggling carries confiscation, a penalty of up to five times the value of the goods and prison of up to fourteen years under the section 156 table.
• What are regulatory duty and additional customs duty, and why are they charged on some imports but not others?How section 18 of the Customs Act lets the government add regulatory duty and additional customs duty to named goods by notification, and the caps on each.
• Why is sales tax on some imported goods charged on the retail price instead of the customs value?Imports listed in the Third Schedule of the Sales Tax Act pay 18% on the importer's printed retail price, which cannot be below 130% of the duty-paid value.
• How much advance income tax is collected at import under section 148 in tax year 2027, and is it higher if I am not on the Active Taxpayers List?Section 148 import tax runs from 1% to 6% of the duty-paid value, by Twelfth Schedule part and importer type, and doubles for importers not on the ATL.
• How much tax is deducted from export proceeds under section 154, and is it final, minimum or adjustable?Section 154 takes 1.25% of export proceeds in tax year 2027 as a minimum tax, not a final one. The 1% extra advance tax under section 147(6C) is omitted.
• What happens to a non-custom-paid car, or a vehicle used to carry smuggled goods, when customs seizes it?A vehicle used to move goods liable to confiscation can itself be confiscated under section 157, and a tampered chassis is presumed smuggled under 187A.
• Can customs demand more duty after my goods were cleared, and how long do I have to claim back duty I overpaid?Section 32 lets customs demand short-levied duty within three or five years of the relevant date, and section 33 allows one year to claim back overpaid duty.
• What is a valuation ruling under section 25A, and how do I challenge one under section 25D?A section 25A valuation ruling fixes the customs value used to assess your goods. Section 25D allows a review petition within 30 days, then a Tribunal appeal.
• Are exports zero-rated for sales tax, and how does an exporter get a refund of input tax?Section 4 of the Sales Tax Act zero-rates exports, and section 10 refunds excess input tax within 45 days of the claim, subject to conditions and disallowances.