A. Background: (1) CDQC 315 of 25.8.26 about Updated Customs Act (with only Third Schedule read with section 291; and without 1, 2, 4 & 5^th Schedules) from FBR and KC Views & Recommendation in trail, blue, italic and double Line (2) other relevant QCs List is given Para C for ready reference.

B. Updated Commentary 

1. Further to KQU 4057 of 27.8.26, being an important matter, we would inform you about Fifth Schedule to the Customs Act, 1969 (Updated 30.6.26) (Attachment 316.1) having 59 pages.

2. We understand that this is published by Printing & Publication Customs Budget FBR, Islamabad.

3. The Fifth Schedules supersedes normal standard rates as the First Schedule, keeping in section 18(1A) read with section 18(1) of the Customs Act, as covered in para C. 

C. Relevant Section 18

The above Schedule as per Section 18 which is reproduced for ready reference and relevant matters are marked in bold and underline

18. Goods dutiable.- (1) Except as hereinafter provided, customs duties shall be levied at such rates as are prescribed in the First Schedule or under any other law for the time being in force on,-

(a) goods imported into Pakistan;

(b) goods brought from any foreign country to any customs station, and without payment of duty there, transshipped or transported for, or thence carried to, and imported at any other customsstation; and

(c) goods brought in bond from one customs station to another.

(1A) Notwithstanding anything contained in sub-section (1), customs duties shall be levied at such rates on import of goods or class of goods as are prescribed in the Fifth Schedule, subject to such conditions, limitations and restrictions as prescribed therein.

(2) No export duty shall be levied on the goods exported from Pakistan

(3) The Federal Government may, by notification in the official Gazette, levy, subject to such conditions, limitations or restrictions as it may deem fit to impose, a regulatory duty on all or any of the goods imported or exported, as specified in the First Schedule at a rate not exceeding one hundred per cent of the value of such goods as determined under section 25 or, as the case may be, section 25A.

(4) The regulatory duty levied under sub-section (3) shall –

(a) be in addition to any duty imposed under sub-section (1) or under any other law for the time being in force; and

(b) be leviable on and from the day specified in the notification issued under that sub-section, notwithstanding the fact that the issue of the official Gazette in which such notification appears is published at any time after that day.

(5) The Federal Government may, by notification in the official Gazette, levy an additional customs-duty on such imported goods as are specified in the First Schedule, at a rate not exceeding thirty-five per cent of value of such goods as determined under section 25 or, as the case may be, section 25A:

Provided that the cumulative incidence of customs-duties leviable under sub-sections (1) and (5) shall not exceed the rates agreed to by the Government of Pakistan under multilateral trade agreements.

(6) The additional customs-duty levied under sub-section (5) shall be,-

(a) in addition to any duty imposed under sub-sections (1) and (3) or under any other law for the time being in force; and

(b) leviable on and from the day specified in the notification issued under that sub-section, notwithstanding the fact that the official Gazette in which such notification appears is published at any time after that day.

D. KC Views & Recommendations 

1. In KC's view, there are no further amendments from 1.7.26 till a day before release this CDQC, as our team checks the relevant website twice a day.

2. Despite the FBR version, we recommend that if any inadvertent error is found viz a viz Gazette Finance Act, it may kindly be reported to Secretary (Customs Budget), FBR, Islamabad at secretary.customsbudget@fbr.gov.pk for necessary correction.

E. List of relevant QCs

(a) TLQC 3587 of 29.6.26 about Budget 2026-27: Finance Act Gazette plus 1,500 pages & KC Recommendations 

(b) CDQC 297 of 23.12.25 about Customs Budget Proposals by 10.2.26 & KC Recommendation 

Should you require any clarification or explanations in respect of the above or otherwise, please feel free to email us.

Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

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