KARACHI: The federal government has introduced a significant amendment to the Customs Act, 1969, through the recently passed Finance Act, 2025, which will impact small-scale imports. The revised provisions now specifically grant customs duty exemptions for parcels or goods imported via courier or postal services, provided their value does not exceed Rs1,000.
This change is a key adjustment to Section 19C of the Customs Act. Previously, this section allowed a broader customs duty exemption for imported goods valued up to Rs5,000, irrespective of the mode of shipment. With the new amendment, the exemption is now explicitly tied to consignments sent through post or courier services and restricted to an individual parcel value of no more than Rs1,000.
Amended Clause and Its Implications
The amended Section 19C now explicitly states: “Where the value of imported goods through post or courier does not exceed one thousand rupees, no duties and taxes shall be demanded, subject to such conditions and restrictions as may be prescribed by the Board under the rules.”
This amendment is largely aimed at streamlining Customs procedures for low-value shipments, reducing administrative burdens on both importers and the Customs department, and encouraging the legal importation of small personal or commercial items through recognized and traceable courier channels. Officials from Pakistan Customs suggest that the measure seeks to align domestic regulations with international best practices, where many countries implement similar low-value shipment exemptions to enhance delivery efficiency and reduce processing costs.
Potential Impact and Future Outlook
While the measure is expected to benefit businesses involved in cross-border e-commerce and consumers who frequently receive small parcels, some trade analysts have raised concerns. They point out that reducing the threshold from Rs5,000 to Rs1,000 may negatively affect certain small importers who previously benefited from the higher exemption limit.
The decision also signals an increased emphasis on using formal courier or postal services to ensure better traceability and control over imports, potentially discouraging under-invoicing or smuggling through informal channels.
Customs authorities are anticipated to issue detailed rules in the coming weeks. These rules will outline the specific procedural requirements and compliance obligations that must be met to avail this newly defined exemption. Overall, the 2025 reforms reflect a strategic shift in Pakistan’s Customs policy framework, seeking to balance trade facilitation with improved oversight of import channels.
