Duty and tax deferment procedure for livestock imports, meat exports notified

The Federal Board of Revenue (FBR) has proposed allowing duty-free imports of cattle, sheep and goats for fattening and subsequent export, including meat production, under draft amendments to the Customs Rules, 2001, reported 24NewsHD TV channel on Saturday.

According to SRO 1752(I)/2026, issued on October 7, the proposed scheme would exempt eligible livestock imports from customs duty, additional customs duty, regulatory duty, sales tax, federal excise duty and withholding tax.

The FBR has invited objections and suggestions within seven days of the notification’s publication in the official Gazette.

The scheme introduces two categories: Track A for fattening and re-exporting imported animals, and Track B for fattening, slaughtering, processing and exporting meat and meat products.

Track B would take effect upon notification of the final rules, while Track A would require separate clearance under the Export Policy Order.

Eligible operators must obtain authorisation from Customs and relevant animal health authorities, maintain identification and traceability records, and provide financial security against deferred duties and taxes.

Under the proposed rules, cattle must be exported or slaughtered within 180 days of release from quarantine, while sheep and goats must be processed or exported within 120 days. Extensions would be permitted under specified conditions.

New and expanding livestock facilities would receive a 24-month commissioning period, extendable by another 12 months.

Such projects would be required to export at least 80% of imported animals under Track A or 80% of production by value under Track B, maintaining the required ratio for five financial years.

The draft also allows duty-free imports of feed, veterinary medicines, vaccines and other approved fattening inputs, provided they are used exclusively for imported livestock under the scheme.

Meat and meat products must be exported within 120 days of slaughter.

Operators could divert up to 10% of imported animals or equivalent meat quantities to the domestic market with prior approval and payment of applicable duties, taxes and surcharge.

The rules also set mortality limits of 3% for cattle and 5% for sheep and goats, along with quarterly reporting, customs audits, and penalties for non-compliance.

The FBR would prescribe detailed operating procedures, including approved ports, identification requirements and electronic monitoring arrangements, through subsequent customs general orders.