Import duties and taxes in Pakistan: building a real landed cost

The assessed value comes first

Duties are calculated on the customs-assessed value, which is normally CIF — cost, insurance and freight to the Pakistani port. If Customs holds a valuation ruling for your commodity, the ruling value can override your invoice, so check it before you commit to a purchase price.

The duty and tax stack

Each levy is applied to a base that includes the ones before it, which is why small rate differences compound.

• Customs duty — rate set by your HS code in the Pakistan Customs Tariff
• Additional customs duty and, on some goods, regulatory duty
• Sales tax on the duty-paid value
• Advance income tax, with a higher rate for non-filers
• Federal excise duty on specific commodity groups

The costs nobody quotes you

Beyond the tariff stack, a realistic landed cost includes terminal handling, delivery order and documentation fees from the line, container security deposit, examination and labour charges, inland trucking to your city, and any storage if clearance runs past free time.

Where legitimate savings exist

Duty planning is not about aggressive classification — it is about using entitlements you already qualify for. Correct HS classification, applicable SRO exemptions, free trade agreement certificates of origin (notably China–Pakistan FTA), and manufacturing bond or DTRE schemes for export-oriented production can move landed cost by double-digit percentages.

Filer status alone changes the advance income tax rate, and it is the easiest saving most importers overlook.