Industrial Machinery Import Duty & Landed Cost: South Korea to Pakistan
Full 2026 tariff breakdown, customs duty calculations, and compliance alerts for importing into Pakistan.
2026 Tariff & Cost Breakdown for Importing Industrial Machinery
Industrial Machinery imported into Pakistan incurs an 8.5% customs duty rate and a 20% VAT rate. Duties are calculated on the CIF value in PKR. The total landed cost includes these duties and other expenses.
Cost Breakdown
| Component | Rate | Amount |
|---|---|---|
| Product Value | — | USD 80000.00 |
| Shipping | — | USD 1200.00 |
| Insurance | — | USD 150.00 |
| CIF Value | — | USD 81350.00 |
| Customs Duty | 8.5% | USD 6914.75 |
| VAT/GST | 20% | USD 17652.95 |
| Total Landed Cost | — | USD 105917.70 |
HS Code Classification for Industrial Machinery
Primary HS Code: 8479.89 — What It Covers
HS 8479.89 classifies machinery not specified elsewhere. This includes Industrial Machinery from South Korea. The correct classification is vital for accurate duty calculation.
Why Misclassification Carries Risk in Pakistan
Misclassification risks duty reassessment and fine enforced by the Federal Board of Revenue (FBR). Accurate HS code classification is essential for compliance.
Step-by-Step Guide: Importing Industrial Machinery from South Korea to Pakistan
Step 1: Verify Your HS Code & Product Description
Use the Pakistan tariff lookup tool to verify your HS code and product description. Binding tariff information may be available for Industrial Machinery.
Step 2: Gather Required Import Documents
Commercial Invoice Requirements
The commercial invoice must include the HS code, product description, quantity, and value in PKR. The invoice must be attested by the Pakistani Embassy or Consulate in South Korea.
Certificate of Origin
A Certificate of Origin is required for Industrial Machinery imports. Pakistan accepts the CO in a specific format, which must be attested by the Pakistani Embassy or Consulate in South Korea.
Packing List & Shipping Documents
The bill of lading or airway bill must include specific details, such as the HS code and product description. Pakistan requires these documents for customs clearance.
Step 3: Calculate Your Landed Cost
Calculate the landed cost using the formula: CIF Value + Customs Duty (8.5% of CIF) + VAT/GST (20% of CIF + Duty) = Total Landed Cost in PKR.
Step 4: Submit to Pakistan Customs Authority
Submit your declaration through the Federal Board of Revenue (FBR) system. Pakistan requires a Certificate of Origin and a commercial invoice attested by the Pakistani Embassy or Consulate in South Korea.
Step 5: Pay Duties & Clear Goods
Pay duties through accepted payment methods, such as online banking or cash. The typical clearance timeline is a few days, depending on the customs authority's processing time.
How to Legally Reduce Duty on Industrial Machinery Imports into Pakistan
Applicable Free Trade Agreements in 2026
No bilateral Free Trade Agreement (FTA) exists between South Korea and Pakistan as of 2026. This means no preferential tariffs apply to Industrial Machinery imports.
Duty Deferral Options: Bonded Warehouses & FTZs
Pakistan's Export Processing Zones (EPZs) and Free Trade Zones (FTZs) offer duty deferral options under the Export Processing Zones Authority (EPZA). This allows for temporary duty exemption on Industrial Machinery imports.
Preferential Tariff Programs
No preferential tariff programs currently apply to Industrial Machinery from South Korea. Importers must pay the standard 8.5% customs duty and 20% VAT.
Pakistan Customs Compliance Rules for Industrial Machinery
Federal Board of Revenue (FBR) Requirements for Industrial Machinery
The Federal Board of Revenue (FBR) requires specific filings and documentation for Industrial Machinery imports. Required certifications include PSQCA certification and SONCAP certificate for certain machinery.
De Minimis Threshold
The De Minimis Threshold is N/A PKR, meaning all Industrial Machinery imports are subject to duty and VAT, regardless of value.
Frequently Asked Questions About Industrial Machinery Import Duty from South Korea to Pakistan
What is the duty rate for Industrial Machinery from South Korea to Pakistan?
The duty rate is 8.5%. This applies to all Industrial Machinery imports from South Korea. The rate is based on the CIF value in PKR.
What documents are required for importing Industrial Machinery from South Korea?
Required documents include a commercial invoice, Certificate of Origin, packing list, and bill of lading or airway bill. These documents must be attested by the Pakistani Embassy or Consulate in South Korea.
Is there an FTA between South Korea and Pakistan for Industrial Machinery imports?
No, there is no bilateral Free Trade Agreement (FTA) between South Korea and Pakistan as of 2026. This means no preferential tariffs apply to Industrial Machinery imports.
What are the penalties for non-compliance with Pakistan customs regulations?
Penalties include duty reassessment and fine enforced by the Federal Board of Revenue (FBR). Accurate compliance with regulations is essential to avoid these penalties.
What is the typical clearance timeline for Industrial Machinery imports in Pakistan?
The typical clearance timeline is a few days, depending on the customs authority's processing time. This can vary depending on the complexity of the shipment and compliance with regulations.
Can I import used Industrial Machinery from South Korea to Pakistan?
Yes, used Industrial Machinery can be imported from South Korea to Pakistan. However, the import process and regulations may differ from new machinery imports. Consult with a licensed customs broker for specific guidance.