How To Calculate Regulatory Duty Using Tax Calculator Pakistan?

Calculating regulatory duty (RD) on imported goods by Tax Calculator Pakistan involves determining the applicable duty rate based on the product's classification and value. The Federal Board of Revenue (FBR) provides tools and guidelines to assist importers in this process.​

???? Step 1: Determine the Harmonized System (HS) Code

Each imported item is assigned a unique HS Code, which classifies the product and determines the applicable duty rates. You can find the HS Code for your product in the Pakistan Customs Tariff.

???? Step 2: Identify the Applicable Regulatory Duty Rate

Regulatory duty rates vary depending on the product category and are subject to change. For instance, as per the Statutory Regulatory Order (SRO) No. 928(I)/2024, regulatory duties range from 5% to 55% on various imported items, effective from July 1, 2024.

???? Step 3: Calculate the Customs Value

The customs value is the total value of the imported goods, including:​

• Cost: The purchase price of the goods.​

• Insurance: The cost of insuring the goods during transit.​

• Freight: The cost of transporting the goods to Pakistan.​

This is commonly referred to as the CIF (Cost, Insurance, and Freight) value.​

???? Step 4: Calculate the Regulatory Duty

Once you have the customs value and the applicable RD rate, calculate the regulatory duty by Tax Calculator Pakistan using the formula:​

Regulatory Duty = Customs Value × RD Rate​

For example, if the customs value of your goods is PKR 100,000 and the RD rate is 10%, the regulatory duty would be:​

PKR 100,000 × 10% = PKR 10,000​

???? Step 5: Use Online Duty Calculators

To simplify the process, you can use online duty calculators provided by the FBR or other platforms. These tools automatically calculate the regulatory duty along with other applicable taxes.

⚠️ Important Considerations

• Exchange Rates: Since the customs value is often in foreign currency, fluctuations in exchange rates can affect the final duty amount.​

• Documentation: Ensure that all invoices, shipping documents, and insurance certificates are accurate and complete to avoid discrepancies in the customs value.​

• Policy Changes: Regulatory duty rates are subject to change based on government policies. It's essential to stay updated with the latest notifications from the FBR.​

✅ Conclusion

Calculating regulatory duty in Pakistan requires accurate determination of the HS Code, applicable duty rate, and customs value. Utilizing online tools like the Hamza & Hamza Law Associates's Duty Calculator can streamline this process and ensure compliance with customs regulations. Always consult the latest FBR notifications or a customs expert for precise calculations and to stay informed about any policy changes.​