The Federal Board of Revenue (FBR) has removed customs duty exemptions on 479 items, including those under the miscellaneous goods category, effective July 1, 2025. The decision aims to streamline exemptions and reduce associated costs.
As per reports, the FBR’s instructions to the Collectors of Customs indicated that 479 entries across Part-I, Part-III, and Part-II of the Fifth Schedule to the Customs Act, 1969 have been deleted. The changes maintain the serial numbers in the Fifth Schedule for easier comparison with previous years’ data.
Part-VII of the Fifth Schedule, which covered miscellaneous goods, has been omitted. However, two specific entries, including “live fish and shrimp for breeding” and “unmanufactured tobacco,” have been moved to Part-II at serial numbers 153 and 154, respectively.
Additionally, the FBR has eliminated the condition for registration with the Ministry of Textile Industry, replacing it with a new provision stating that machinery and equipment, if imported by textiles and apparel industrial units registered as manufacturers-cum-exporters, will be subject to revised conditions.
The FBR has also updated the regulatory duty (RD) framework, replacing SRO 928(I)/2024 with SRO 11520(I)/2025. The RD on 1011 PCT codes has been revised, with a 50% reduction on 473 codes and a 20% reduction on 538 codes.Â
The maximum RD rate has been lowered from 90% to 50%. Additionally, the RD on plums has been set at 28%, regardless of their PCT codes, and FBR has instructed collectors to ensure correct application of these duties.
