IMPORT CUSTOMS DUTY

AND TAXES IN PAKISTAN

Submitted To: Dr.Waqar Ahmed

Submitted By:
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Calculation of Custom Values of Fresh Dates

HS Code 0804.1010
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Calculations:
To determine the customs value, we add landing fees, insurance, and
other fees (if any) to the cost of imported goods to CNF.
CNF Value= US$1000
Landing Charges (1% of CNF Value) = US$10
Insurance (1% of CNF Value) = US$10
Customs Value in US$= US$1020
Exchange rate in Pakistani Rupee is Rs. 224. Now multiply the customs
value in US$ with the exchange rate to get the customs value in local
currency.
Custom Value in PKR (1020 x 224) = 228480PKR
CALCULATION OF REGULATORY DUTY
Regulatory duty on the Fresh Dates (HS Code 0804.1010) is 10% of the customs
value in PKR.
Custom Value in PKR =228480
Regulatory Duty in PKR (228480 x 10%) = 22848
CALCULATION OF IMPORT CUSTOMS DUTY
As our product is Fresh Dates (HS Code 0804.1010) and its import customs duty is
20%.
Import Customs Duty in PKR (228480 x 20%) = 45696
And as a commercial importer 1% addition customs duty has to be paid.
Addition Customs duty in PKR (228480 x 1%) = 2285
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CALCULATION OF SALES TAX

In Pakistan implied sales tax is 17% on the products.
Now adding the calculated amounts of customs value, customs duty, and additional
customs duty to calculate sales tax
Customs Value in PKR =228480
Regulatory Duty in PKR=22848
Customs Duty in PKR =45696
Addition Customs duty in PKR =2285
Now add all the above values
Total Duty in PKR=299309
Sales Tax in PKR (299309x 17%) = 50883
And we also pay 3% of additional sales tax as a commercial importer.
Additional Sales Tax in PKR (299309x 3%) = 8979
CALCULATION OF INCOME TAX
Let’s calculate income tax as a filer which is 5.5%.
Customs Value in PKR = 228480
Regulatory Duty in PKR = 22848
Customs Duty in PKR = 45696
Addition Customs duty in PKR= 2285
Sales Tax in PKR = 50883
Addition Sales Tax in PKR = 8979
Total Value = 359171
Income Tax in PKR (359171 x 5.5%) = 19754
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TOTAL CUSTOMS DUTY AND TAXES

Now, add all the customs duty and taxes that we have calculated above to get the
customs duty and taxes of the fresh dates.
Regulatory Duty in PKR=22848
Customs Duty in PKR = 45696
Additional Customs Duty in PKR = 2285
Sales Tax in PKR=50883
Additional Sales Tax in PKR=8979
Income Tax in PKR= 19754
Total Customs Duty and Taxes on Fresh Dates=150445
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Calculation of Custom Values of Cheese

HS Code 0406.1010
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Calculation
To determine the customs value, we add landing fees, insurance, and
other fees (if any) to the cost of imported goods to CNF.
CNF Value= US$1000
Landing Charges (1% of CNF Value) = US$10
Insurance (1% of CNF Value) = US$10
Customs Value in US$= US$1020
Exchange rate in Pakistani Rupee is Rs. 224. Now multiply the customs
value in US$ with the exchange rate to get the customs value in local
currency.
Custom Value in PKR (1020 x 224) = 228480PKR
CALCULATION OF REGULATORY DUTY
Regulatory duty on the Cheese (HS Code 0406.1010) is 50% of the customs value
in PKR.
Custom Value in PKR =228480
Regulatory Duty in PKR (228480 x 50%) = 114240
CALCULATION OF IMPORT CUSTOMS DUTY
As our product is Cheese (HS Code 0406.1010) and its import customs duty is
20%.
Import Customs Duty in PKR (228480 x 20%) = 45696
And as a commercial importer 1% addition customs duty has to be paid.
Addition Customs duty in PKR (228480 x 1%) = 2285
7|Page

CALCULATION OF SALES TAX

In Pakistan implied sales tax is 17% on the products.
Now adding the calculated amounts of customs value, customs duty, and additional
customs duty to calculate sales tax
Customs Value in PKR =228480
Regulatory Duty in PKR=114240
Customs Duty in PKR =45696
Addition Customs duty in PKR =2285
Now add all the above values
Total Duty in PKR=390701
Sales Tax in PKR (390701x 17%) = 66419
And we also pay 3% of additional sales tax as a commercial importer.

Additional Sales Tax in PKR (390701x 3%) = 11721

CALCULATION OF INCOME TAX
Let’s calculate income tax as a filer which is 5.5%.
Customs Value in PKR = 228480
Regulatory Duty in PKR = 114240
Customs Duty in PKR = 45696
Addition Customs duty in PKR= 2285
Sales Tax in PKR = 66419
Addition Sales Tax in PKR = 11721
Total Value = 468841
Income Tax in PKR (468841 x 5.5%) = 25786
8|Page

TOTAL CUSTOMS DUTY AND TAXES

Now, add all the customs duty and taxes that we have calculated above to get the
customs duty and taxes of the fresh dates.
Regulatory Duty in PKR=114240
Customs Duty in PKR = 45696
Additional Customs Duty in PKR = 2285
Sales Tax in PKR=66419
Additional Sales Tax in PKR=11721
Income Tax in PKR= 25786
Total Customs Duty and Taxes on Cheese=226147
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Calculation of Custom Values of White Chocolates

HS Code 0406.1010
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Calculation:
To determine the customs value, we add landing fees, insurance, and
other fees (if any) to the cost of imported goods to CNF.
CNF Value= US$1000
Landing Charges (1% of CNF Value) = US$10
Insurance (1% of CNF Value) = US$10
Customs Value in US$= US$1020
Exchange rate in Pakistani Rupee is Rs. 224. Now multiply the customs
value in US$ with the exchange rate to get the customs value in local
currency.
Custom Value in PKR (1020 x 224) = 228480PKR
CALCULATION OF REGULATORY DUTY
Regulatory duty on the White chocolate (HS Code 1704.9010) is 20% of the
customs value in PKR.
Custom Value in PKR =228480
Regulatory Duty in PKR (228480 x 20%) = 45696
CALCULATION OF IMPORT CUSTOMS DUTY
As our product is White chocolate (HS Code 1704.9010) and its import customs
duty is 20%.
Import Customs Duty in PKR (228480 x 20%) = 45696
And as a commercial importer 1% addition customs duty has to be paid.
Addition Customs duty in PKR (228480 x 1%) = 2285
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CALCULATION OF SALES TAX

In Pakistan implied sales tax is 17% on the products.
Now adding the calculated amounts of customs value, customs duty, and additional
customs duty to calculate sales tax
Customs Value in PKR =228480
Regulatory Duty in PKR=45696
Customs Duty in PKR =45696
Addition Customs duty in PKR =2285
Now add all the above values
Total Duty in PKR=322157
Sales Tax in PKR (322157x 17%) = 54767
And we also pay 3% of additional sales tax as a commercial importer.
Additional Sales Tax in PKR (322157x 3%) = 9665

CALCULATION OF INCOME TAX

Let’s calculate income tax as a filer which is 5.5%.
Customs Value in PKR = 228480
Regulatory Duty in PKR = 45696
Customs Duty in PKR = 45696
Addition Customs duty in PKR= 2285
Sales Tax in PKR = 54767
Addition Sales Tax in PKR = 9665
Total Value = 386589
Income Tax in PKR (386589 x 5.5%) = 21262
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TOTAL CUSTOMS DUTY AND TAXES

Now, add all the customs duty and taxes that we have calculated above to get the
customs duty and taxes of the fresh dates.
Regulatory Duty in PKR=45696
Customs Duty in PKR = 45696
Additional Customs Duty in PKR = 2285
Sales Tax in PKR=54767
Additional Sales Tax in PKR=9665
Income Tax in PKR= 21262
Total Customs Duty and Taxes on White Chocolate=179371
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Calculation of Custom Values of Pineapple

HS Code 0406.1010

To determine the customs value, we add landing fees, insurance, and

other fees (if any) to the cost of imported goods to CNF.
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CNF Value= US$1000

Landing Charges (1% of CNF Value) = US$10
Insurance (1% of CNF Value) = US$10
Customs Value in US$= US$1020
Exchange rate in Pakistani Rupee is Rs. 224. Now multiply the customs
value in US$ with the exchange rate to get the customs value in local
currency.
Custom Value in PKR (1020 x 224) = 228480PKR
CALCULATION OF REGULATORY DUTY
Regulatory duty on the Pineapple (HS Code 0804.3000) is 40% of the customs
value in PKR.
Custom Value in PKR =228480
Regulatory Duty in PKR (228480 x 40%) = 91392
CALCULATION OF IMPORT CUSTOMS DUTY
As our product Pineapple (HS Code 0804.3000) is and its import customs duty is
20%.
Import Customs Duty in PKR (228480 x 20%) = 45696
And as a commercial importer 1% addition customs duty has to be paid.
Addition Customs duty in PKR (228480 x 1%) = 2285

CALCULATION OF SALES TAX

In Pakistan implied sales tax is 17% on the products.
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Now adding the calculated amounts of customs value, customs duty, and additional
customs duty to calculate sales tax
Customs Value in PKR =228480
Regulatory Duty in PKR=91392
Customs Duty in PKR =45696
Addition Customs duty in PKR =2285
Now add all the above values
Total Duty in PKR=367853
Sales Tax in PKR (367853x 17%) = 62535
And we also pay 3% of additional sales tax as a commercial importer.

Additional Sales Tax in PKR (367853x 3%) = 11036

CALCULATION OF INCOME TAX
Let’s calculate income tax as a filer which is 5.5%.
Customs Value in PKR = 228480
Regulatory Duty in PKR = 91392
Customs Duty in PKR = 45696
Addition Customs duty in PKR= 2285
Sales Tax in PKR = 62535
Addition Sales Tax in PKR = 11036
Total Value = 441424
Income Tax in PKR (441424 x 5.5%) = 24278

TOTAL CUSTOMS DUTY AND TAXES

Now, add all the customs duty and taxes that we have calculated above to get the
customs duty and taxes of the fresh dates.
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Regulatory Duty in PKR=91392

Customs Duty in PKR = 45696
Additional Customs Duty in PKR = 2285
Sales Tax in PKR=62535
Additional Sales Tax in PKR=11035
Income Tax in PKR= 24278

Total Customs Duty and Taxes on Pineapple=237222

Calculation of Custom Values of Cocoa Powder

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HS Code 1806.1000

Calculations:
To determine the customs value, we add landing fees, insurance, and
other fees (if any) to the cost of imported goods to CNF.
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CNF Value= US$1000

Landing Charges (1% of CNF Value) = US$10
Insurance (1% of CNF Value) = US$10
Customs Value in US$= US$1020
Exchange rate in Pakistani Rupee is Rs. 224. Now multiply the customs
value in US$ with the exchange rate to get the customs value in local
currency.
Custom Value in PKR (1020 x 224) = 228480PKR
CALCULATION OF REGULATORY DUTY
Regulatory duty on the Cocoa Powder (HS Code 1806.1000) is 20% of the
customs value in PKR.
Custom Value in PKR =228480
Regulatory Duty in PKR (228480 x 20%) = 45696
CALCULATION OF IMPORT CUSTOMS DUTY
As our product Cocoa Powder (HS Code 1806.1000) is and its import customs
duty is 20%.
Import Customs Duty in PKR (228480 x 20%) = 45696
And as a commercial importer 1% addition customs duty has to be paid.
Addition Customs duty in PKR (228480 x 1%) = 2285

CALCULATION OF SALES TAX

In Pakistan implied sales tax is 17% on the products.
19 | P a g e

Now adding the calculated amounts of customs value, customs duty, and additional
customs duty to calculate sales tax
Customs Value in PKR =228480
Regulatory Duty in PKR=45696
Customs Duty in PKR =45696
Addition Customs duty in PKR =2285
Now add all the above values
Total Duty in PKR=322157
Sales Tax in PKR (322157x 17%) = 54767
And we also pay 3% of additional sales tax as a commercial importer.

Additional Sales Tax in PKR (322157x 3%) = 9665

CALCULATION OF INCOME TAX
Let’s calculate income tax as a filer which is 5.5%.
Customs Value in PKR = 228480
Regulatory Duty in PKR = 45696
Customs Duty in PKR = 45696
Addition Customs duty in PKR= 2285
Sales Tax in PKR = 54767
Addition Sales Tax in PKR = 9665
Total Value = 386589
Income Tax in PKR (386589 x 5.5%) = 21262

TOTAL CUSTOMS DUTY AND TAXES

Now, add all the customs duty and taxes that we have calculated above to get the
customs duty and taxes of the fresh dates.
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Regulatory Duty in PKR=45696

Customs Duty in PKR = 45696
Additional Customs Duty in PKR = 2285
Sales Tax in PKR=54767
Additional Sales Tax in PKR=9665
Income Tax in PKR= 21262
Total Customs Duty and Taxes on cocoa powder =179371

Terms and Definitions Related To the Assignment

Regulatory Duty
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The duty that is applied on the specified products that are manufactured
or produced in the country but still you import it from other country is
known as regulatory duty.
Commercial Importer
An importer who imports goods for the purpose of further supply to
other persons and is registered as commercial importer
Filer and Non-Filer
A tax filer is a person who is registered with the Federal Board of
Revenue and has filed income tax returns already with them. On the
contrary, a non-filer is a person who has not filed his income tax returns
with FBR.