Government Implements New Import Regulations Affecting Various Products

The government has recently introduced significant changes to import regulations, affecting a wide range of products. Effective from July 1, regulatory duties have been imposed or increased on 657 luxury items, along with additional customs duties on 2,200 goods. The Federal Board of Revenue (FBR) has enforced a 2% Additional Duty Customs (ADC) on items previously duty-free, with rates varying from 2% to 7% on different products. Notably, vehicles exceeding 1,000 cc, including cars, jeeps, and commercial vehicles, now face regulatory duties ranging from 5% to 55%.

Specific consumer goods such as perfumes, watches, sunglasses, imported cycles, dairy products, honey, dates, cosmetics, clothing, jewelry, and more will now be subject to varying regulatory duties. However, certain exemptions exist for specific imports under notifications, temporary schemes, steel imports, new entrant vehicles, and auto parts manufacturing materials. Home appliance kits will incur a 5% regulatory duty rate.

Moreover, a 2% additional customs duty has been imposed on sub-components used in automotive manufacturing, agricultural tractors, and CNG-dedicated vehicles. Components for agriculture and road tractors of different horsepower ratings will also face a 2% additional customs duty. Additionally, a 2% ADC will apply to components used in vehicle assembly under specific chapters of the Customs Act, with exemptions for items like seeds, motor fuel, solar panels, and electric vehicles until a specified date.

The recent changes in import duties by the government aim to regulate the influx of luxury items and boost local manufacturing. While these measures may impact the prices of certain imported goods, they also encourage the growth of domestic industries. It is essential for importers and consumers to stay informed about these regulatory updates to make informed decisions regarding their purchases.