The Federal Board of Revenue (FBR) has extended the 5% and 10% regulatory duties (RD) on flat iron and steel products for an additional three months, pushing the deadline to March 31, 2025, in a move aimed at protecting the local steel industry.
According to SRO.78(I)/2025, a 5% RD will continue to apply on the import of cold-rolled steel strips with a thickness below 0.5mm and up to 100mm wide, as well as on flat-rolled iron or non-alloy steel products of less than 600mm in width that are clad, plated, or coated.
Meanwhile, a 10% RD remains in effect on flat-rolled iron or non-alloy steel products of 600mm or more in width, which are cold-rolled, not clad, plated, or coated.
The Commerce Ministry, in a summary submitted to the Economic Coordination Committee (ECC), stated that under Section 18(3) of the Customs Act, 1969, the federal government has the authority to regulate duties.
The Tariff Policy Board recommended extending the regulatory duty on 36 steel tariff lines until March 31, 2025, in response to requests from domestic manufacturers.
These duties were initially imposed in the Finance Act 2024 with a December 31, 2024, sunset clause as a temporary protective measure for local producers. However, industry stakeholders urged the government to extend the tariff protection, citing concerns over competition from imported steel.
The Tariff Policy Board has further outlined that from April 1, 2025, regulatory duties will revert to their original levels of 0% and 5%, marking the end of the temporary protective measure.
