Bitumen Import Duty in Pakistan
Last updated: 2026-10-04
Bitumen Import Duty in Pakistan
Bitumen imports into Pakistan attract a customs duty of 11% ad valorem (HS Code 2713.2000), plus a 5% sales tax, 6% withholding tax (WHT) on imports, and 3% regulatory duty under FBR SRO 1264(I)/2024. For a standard 180 CBM bulk shipment carrying roughly 180 metric tons of penetration grade 60/70 bitumen valued at PKR 34.4 million (~USD 1,195/MT FOB), total landed taxes and duties average PKR 6.1–6.9 million per consignment. Effective landed cost per ton, including duties, freight, and port charges at Karachi, typically settles between USD 1,340 and USD 1,410/MT — a 12–18% premium over the FOB reference price.
Current Bitumen Import Duty Structure in Pakistan (2024–2025)
The Federal Board of Revenue (FBR) classifies bitumen under HS Code 2713.2000 (petroleum bitumen / asphalt). The tax stack below reflects rates effective under the Finance Act 2024 and SRO notifications current as of Q4 2024.
| Tax / Duty Component | Rate | Applied On |
|---|---|---|
| Customs Duty (CD) | 11% | CIF Value |
| Regulatory Duty (RD) | 3% | CIF Value |
| Sales Tax | 5% | CIF + CD + RD |
| Income Tax / WHT (import) | 6% | CIF + CD + RD |
| Additional Customs Duty | N/A (removed) | — |
| Sindh Infrastructure Cess (Karachi port) | ~0.5% | CIF Value |
| Total effective taxation | ~24–26% | Landed CIF |
Key notes for importers:
- Bitumen was moved to a zero-rated sales tax regime for registered industrial importers under certain SROs, reducing effective sales tax to 0% when resold to registered manufacturers — but the standard 5% applies to commercial importers.
- New and used bitumen (bulk vs drum) attract the same HS code duty, but drummed bitumen incurs higher freight and handling (typically USD 40–70/MT more).
- FBR valuation rulings set a minimum customs value of approximately USD 1,050–1,195/MT, depending on grade (60/70, 80/100, PG 64-22).
Duty Calculation on a Typical 180 MT Bitumen Shipment
Below is a worked example for a 180 MT bulk cargo of 60/70 penetration grade bitumen arriving at Port Qasim, Karachi.
| Line Item | Rate | Amount (PKR) |
|---|---|---|
| CIF Value (180 MT × USD 1,195) | — | 34,416,000 |
| Customs Duty | 11% of CIF | 3,785,760 |
| Regulatory Duty | 3% of CIF | 1,032,480 |
| Sub-total (CIF + CD + RD) | — | 39,234,240 |
| Sales Tax | 5% | 1,961,712 |
| Withholding Tax (import) | 6% | 2,354,054 |
| Sindh Infrastructure Cess | 0.5% | 172,080 |
| Total Duties & Taxes | — | 9,306,086 |
| Landed Cost per MT | — | ~PKR 242,900 (~USD 872 ex-clearance) |
> Note: Exchange rate assumed at PKR 278.5/USD. Actual landed cost varies with SBP interbank rate, port dwell time, and demurrage.
Cost per ton breakdown (USD equivalent):
- FOB price: USD 1,195/MT
- Freight (Jebel Ali → Karachi): USD 28–35/MT
- Insurance + landing: USD 4–6/MT
- Duty & taxes: USD 190–205/MT
- Total landed: USD 1,340–1,410/MT
Bitumen Import Duty Comparison: Pakistan vs Regional Markets
Why do importers divert cargo from Karachi to other ports? Compare the tax burden:
| Country | Customs Duty | Sales Tax | Regulatory Duty | Total Tax Burden |
|---|---|---|---|---|
| Pakistan | 11% | 5% | 3% | ~19–24% |
| India | 10% | 18% | 0% | ~28% |
| Bangladesh | 5% | 15% | 0% | ~20% |
| Sri Lanka | 15% | 18% | 0% | ~33% |
| UAE (re-export) | 5% | 5% | 0% | ~10% |
| Afghanistan (transit) | 2.5% | 2% | 0% | ~4.5% |
Strategic implications:
- Bangladesh and Pakistan are the most competitive import destinations in South Asia for bulk bitumen, with total tax burdens under 25%.
- India's 18% GST makes Pakistani importers relatively more cost-competitive per ton, but Pakistan's WHT of 6% raises the effective rate for non-corporate importers.
- Afghanistan transit trade via Karachi offers a duty-free corridor (per APTTA) for cargo destined for Afghanistan — a loophole Pakistani authorities have tightened since 2023.
Factors Influencing Bitumen Import Duty in Pakistan
Duty isn't static. Importers must track several moving parts:
FBR issues quarterly valuation rulings that set minimum customs values. Under Valuation Ruling No. 1486/2020 and subsequent amendments, the base value for 60/70 bitumen has ranged from USD 900 to USD 1,220/MT depending on global crude benchmarks (Brent). If your invoice value falls below FBR's reference, customs will uplift the value and assess duty on the higher figure.
- Penetration grades (40/50, 60/70, 80/100): standard 11% duty.
- Performance Grade (PG 64-22, PG 70-22): same HS code, but customs valuation is certified higher (USD 1,150–1,250/MT) due to premium specification.
- Polymer Modified Bitumen (PMB): classified under HS 2713.2000 but may attract additional testing charges at PCSIR Labs (PKR 35,000–60,000 per sample).
- SRO 1264(I)/2024: Standard duty structure.
- SRO 678(I)/2023: Temporary relief for infrastructure projects under CPEC — reduced customs duty to 5% for approved contractors.
- SRO 563(I)/2022: Zero-rating for registered manufacturers importing bitumen for road construction under NHA contracts.
Duty rates are uniform across ports, but port charges differ significantly:
| Port | Port Charges (per 180 MT) | Dwell Time |
|---|---|---|
| Port Qasim, Karachi | PKR 680,000 | 4–6 days |
| Karachi Port Trust (KPT) | PKR 720,000 | 5–8 days |
| Gwadar Port | PKR 410,000 | 7–12 days (limited berths) |
Gwadar offers lower port charges but suffers from infrastructure gaps — most importers still route through Port Qasim.
How to Reduce Bitumen Import Duty in Pakistan
There is no legal way to eliminate duties, but importers use these five legitimate strategies to cut effective cost by 8–14%:
- Register as a manufacturer under SRO 563(I)/2022 to access zero-rated sales tax — saves PKR 1.96 million per 180 MT shipment.
- Import under CPEC exemptions (SRO 678(I)/2023) if you supply NHA or provincial highway projects — reduces customs duty from 11% to 5%, saving PKR 2.06 million per shipment.
- Bulk instead of drummed: eliminates ~USD 55/MT in handling and repackaging costs.
- Consolidate shipments: 500+ MT cargoes attract CIF discounts of 2–3% from Middle Eastern refineries (Jebel Ali, Fujairah, Bahrain).
- Pre-negotiate FBR valuation: submit vessel nomination and value certificate to the Customs Valuation Directorate 48 hours before berthing to avoid upliftment delays.
Additionally, 100% of input tax on WHT is adjustable against your final income tax liability, so the 6% is not a pure cost — it is a cash-flow toll recovered at year-end.
Frequently Asked Questions (FAQ)
Q1: What is the current customs duty on bitumen imports in Pakistan?
As of 2024–2025, customs duty on bitumen (HS 2713.2000) is 11% of CIF value, plus 3% regulatory duty, 5% sales tax, and 6% withholding tax. The total effective tax burden ranges between 19% and 24% of CIF value depending on registration status.
Q2: Is there a duty-free exemption for bitumen imports?
Yes — certain exemptions exist under SRO 563(I)/2022 (zero-rated sales tax for registered manufacturers) and SRO 678(I)/2023 (5% reduced customs duty for CPEC and NHA-approved infrastructure contractors). These require prior FBR registration and project-specific approvals.
Q3: How much does it cost to import 180 MT of bitumen into Pakistan in total?
A standard 180 MT bulk cargo of 60/70 bitumen costs approximately PKR 43.7 million (~USD 157,000) all-in, including CIF value of PKR 34.4 million and PKR 9.3 million in duties, taxes, and cess. Landed cost per ton settles near USD 1,340–1,410/MT.
Q4: Which HS code is used for bitumen in Pakistan?
Bitumen is classified under HS Code 2713.2000 — "Petroleum bitumen (asphalt)." This code applies to penetration grades (40/50, 60/70, 80/100), performance grades (PG 64-22, PG 70-22), and cutback bitumen. Polymer-modified bitumen may require additional PCSIR testing but uses the same code.
Q5: Can I avoid the 6% withholding tax on bitumen imports?
No, but the 6% WHT is not a final tax — it is adjustable against your annual income tax return. Corporate importers typically recover 100% of this amount, reducing the effective annual cost to zero if they have sufficient tax liability. Non-filers and commercial importers absorb it as a real cost.
Calculate Your Exact Bitumen Import Cost in Seconds
Duty rates, FBR valuations, and port charges shift every quarter — manual calculation risks a 5–8% margin error on every shipment. Use the 6Tar Bitumen Import Cost Calculator to model your exact landed cost per MT in real time.
What the 6Tar calculator gives you:
- Live CD, RD, sales tax, and WHT breakdown by HS code
- FBR valuation uplift warnings before you book freight
- Landed cost comparison across Port Qasim, KPT, and Gwadar
- Break-even analysis against domestic PARCO / Attock refinery pricing
👉 [Open the 6Tar Cost Calculator →](https://6tar.com/calc) — plug in your CIF value, tonnage, and port, and get a customs-ready cost sheet in under 60 seconds.