KARACHI: The Federal Board of Revenue (FBR) has imposed regulatory duty on 657 imported items, in the range of 5% to 90%effective from July 1, 2024 vide SRO 928(I)/2024. 90% RD has been imposed on the import of certain class of vehicles including 4×4 SUVs.

A large number of edibles products including wheat flour have been slapped 25% RD.  

The regulatory duty will not apply to several categories of imports, including those under specific notifications and schedules of the Customs Act, 1969. SRO 928 supersedes the previous SRO 966(I)/2022 issued on June 30, 2022.

Exemptions include imports under S.R.O. 678 (I)/2004 dated August 7, 2004, Chapter 99 of the First Schedule of the Customs Act, and various serial numbers under the Fifth Schedule of the Customs Act, provided conditions are met.

Additional exemptions cover imports under the Temporary Importation Scheme (S.R.O. 492(I)/2009), special steel round bars and rods by seamless pipe manufacturers, electrical steel sheets, rubber aprons and cots, vehicles by new entrants under the Auto Development Policy, and input materials for auto parts manufacturing by local vendors (S.R.O. 655(I)/2006).

According to the order, a 5% regulatory duty will be imposed on CKD/SKD kits of home appliances not specified separately in the table. However, pine nuts (chilgoza) and roughly trimmed marble are exempted from regulatory duties. Additionally, the regulatory duty on ground nuts in shell imported from Afghanistan will be reduced from 20% to 10%.

For vehicles with bulletproofing and other security features, the value for regulatory duty purposes will be determined under S.R.O. 1121(I)/2007, dated November 17, 2007.

This new regulation aims to adjust the import duty framework and will be in effect until June 30, 2025, unless rescinded earlier. The move is part of the government’s broader strategy to manage imports, boost local manufacturing, and enhance revenue.

Special Steel and Electrical Steel Sheets under specific PCT codes and conditions are exempt from the new regulatory duties.