# Customs duty on excavators, loaders, cranes and dumpers in Pakistan

URL: https://which.pk/business/guides/customs-duty-construction-machinery/
Author: Ahtisham
Updated: 17 Oct 2026

## Summary

In the 2026-27 Pakistan Customs Tariff, excavators, loaders, bulldozers, graders, road rollers and mobile cranes pay 0% customs duty, with no additional customs duty or regulatory duty. Off-highway dumpers and crane lorries pay 30% customs duty plus 4% additional customs duty, or 10% for contractors registered with SECP and the Pakistan Engineering Council. All pay 18% sales tax, 3% value addition tax when imported for resale, and advance income tax: 1% on excavators for filers, 6% on dumpers for commercial importers.

## Key facts

- Customs duty, excavators: 0%
- Customs duty, dumpers: 30%
- Sales tax at import: 18% (+3% resale)
- Income tax, excavators: 1% (filer)

Customs duty on machinery used in construction is **0%** for excavators, loaders, bulldozers, graders, road rollers and mobile cranes in Pakistan's **2026-27 tariff**. Off-highway **dumpers and crane lorries pay 30%**, plus **4% additional customs duty**. On every machine you also pay **18% sales tax**, a **3% value addition tax** if you import to resell, and **advance income tax**. The rates are the same for new and used machines.

**Customs duty, excavator (PCT 8429.5200):** 0% (Pakistan Customs Tariff 2026-27, unchanged from 2025-26. No additional customs duty or regulatory duty on this line as of October 2026.)

## What is the customs duty on construction machinery by PCT code?

These are the 2026-27 rates, in force from 1 July 2026. Customs duty (CD) comes from FBR's tariff. Additional customs duty (ACD) comes from S.R.O. 1063(I)/2026 and regulatory duty (RD) from S.R.O. 1064(I)/2026.

| Machine | PCT code | CD | ACD | RD |
|---|---|---|---|---|
| Excavator (360-degree revolving superstructure) | 8429.5200 | 0% | 0% | 0% |
| Front-end shovel loader | 8429.5100 | 0% | 0% | 0% |
| Bulldozer, track laying | 8429.1100 | 0% | 0% | 0% |
| Grader or leveller | 8429.2000 | 0% | 0% | 0% |
| Road roller or tamping machine | 8429.4000 | 0% | 0% | 0% |
| Mobile crane on tyres, self-propelled | 8426.4100 | 0% | 0% | 0% |
| Tower crane | 8426.2000 | 0% | 0% | 0% |
| Crane designed for mounting on road vehicles | 8426.9100 | 10% | 0% | 0% |
| Fork-lift truck | 8427.2010, 8427.2090 | 0% | 0% | 0% |
| Concrete batching plant | 8474.3120 | 0% | 0% | 0% |
| Off-highway dumper | 8704.1090 | 30% | 4% | 0% |
| Crane lorry | 8705.1000 | 30% | 4% | 0% |
| Concrete-mixer lorry | 8705.4000 | 30% | 4% | 0% |

The 0% ACD on most lines is because S.R.O. 1063(I)/2026 charges ACD mainly on goods in the **20% and higher CD slabs**, plus a list of named codes; none of the 0% to 15% machines here is on that list. S.R.O. 1064(I)/2026 lists no code from headings 84.26, 84.27, 84.29, 87.04 or 87.05, so there is **no regulatory duty** on them.

**Check the PCT code first:** The tariff describes 8429.5200 as "machinery with a 360-degree revolving superstructure", which is how excavators are classified. A backhoe loader or other machine may fall under another 84.29 line. If you're unsure, see our guide to [HS codes](/business/guides/hs-code-pakistan/); you can ask Customs for an advance ruling on classification.

## Is customs duty different for used machinery?

No. The tariff has **one rate per PCT code**, for new and used goods alike. What changes for used machines is **whether you may import them at all**, which the Import Policy Order decides. We read the current text in a consolidated copy (Version-20) on customspk.com, a private site, because the Ministry of Commerce site blocked us. The age limits below match the original 2022 gazette:

- used excavators, loaders and other plant: **up to 10 years old**, imported by construction companies registered with the Pakistan Engineering Council (PEC), mining and oil and gas companies, or commercial importers acting for them
- used dumpers, crane lorries and transit mixers: **up to 5 years old** and Euro-II compliant

Our guide to [importing construction machinery from Japan](/business/guides/import-construction-machinery-japan/) covers these conditions and the steps.

The **30% regulatory duty** on commercial imports of used vehicles under S.R.O. 1065(I)/2026 applies to vehicles imported under clause (xvi) of Appendix-C. Off-highway dumpers are allowed under a different clause, (i), so on our reading that 30% doesn't apply to them.

## What other taxes are paid at import?

- **Sales tax: 18%** of the customs value plus customs duties (Sales Tax Act, section 3(1)(b)). We found no general sales tax exemption for construction machinery. The exemptions we saw are tied to named projects, such as the Sukkur-Multan motorway.
- **Value addition tax: 3%** at import (Twelfth Schedule), unless an exclusion applies. Exclusions include manufacturers importing inputs for their own use and registered service providers importing goods for their own business. We couldn't confirm whether a construction company importing a machine for its own use qualifies; that depends on its registration.
- **Advance income tax** under section 148, as of the rate card updated to 30 June 2026:

| Machine | Income tax schedule | Filer | Non-filer |
|---|---|---|---|
| Excavators, loaders, cranes, fork-lifts (84.26, 84.27, 84.29, 84.30), batching plant (84.74) | Part I | 1% | 2% |
| Off-highway dumpers (8704.1090), crane lorries and mixers (87.05) | Part III | 5.5% | 11% |
| Same, by a commercial importer | Part III | 6% | 12% |

If you're registered for sales tax, the sales tax and the 3% paid at import count as input tax against what you charge when you sell. See [filer vs non-filer](/business/guides/filer-vs-non-filer/) for why the non-filer rate is double.

## How much tax on Rs 1 crore of machinery?

These examples apply the 2026-27 rates to a customs value of **Rs 1 crore**, for a **commercial importer on the Active Taxpayers List**. They are arithmetic on the published rates, not a quote for any machine.

| | Excavator (8429.5200) | Off-highway dumper (8704.1090) |
|---|---|---|
| Customs duty | Rs 0 | Rs 30,00,000 (30%) |
| Additional customs duty | Rs 0 | Rs 4,00,000 (4%) |
| Sales tax 18% | Rs 18,00,000 | Rs 24,12,000 |
| Value addition tax 3% | Rs 3,00,000 | Rs 4,02,000 |
| Income tax | Rs 1,21,000 (1%) | Rs 9,72,840 (6%) |
| **Total import taxes** | **Rs 22,21,000** | **Rs 71,86,840** |

**Assumptions in this example:** No federal excise duty, no trade-agreement preferences and no landing charge. Income tax is applied to the value plus duties and both sales taxes, as in our [customs duty calculation guide](/business/guides/customs-duty-pakistan/); FBR's wording leaves some room on whether ACD and the 3% belong in that base. Your goods declaration on PSW shows the exact figures.

## Are there concessions for construction companies?

Yes, for the vehicle-type machines. Under **Part-I, serial 27 of the Fifth Schedule** to the Customs Act (updated 30 June 2026), construction companies **registered with SECP and the PEC** pay **10% customs duty**, instead of 30%, on:

- off-highway dumpers (8704.1090)
- crane lorries (8705.1000)
- transit mixers (8705.4000)
- concrete placing trucks, super swinger truck conveyors and mobile canal lining equipment (8705.9000)

The concession only covers goods **not listed as made in Pakistan** in FBR's Customs General Order, or as certified by the Engineering Development Board. Imports under the Fifth Schedule also pay **no ACD** (S.R.O. 1063(I)/2026). The Fifth Schedule has further 0% entries for machinery imported for some project types, such as mineral exploration, each with its own conditions.

**Temporary import** is another route. Construction companies can bring in machinery against an **indemnity bond or bank guarantee** and re-export it after the project. They can keep it later if FBR allows, after paying all duties and taxes.

## Is custom duty on machinery imported from China different?

For excavators, loaders, bulldozers and most cranes, no: their customs duty is **0% whatever the country of origin**. We haven't checked whether the China-Pakistan Free Trade Agreement gives a lower rate on dumpers and crane lorries, so ask your clearing agent before you rely on 30%. Sales tax and income tax don't change with origin.

**More guides:** [Import & Export](/business/import-export/) · [Importing machinery from Japan](/business/guides/import-construction-machinery-japan/) · [Buying used construction machinery](/business/guides/buy-used-construction-machinery/) · [Customs duty calculator](/business/guides/customs-duty-pakistan/) · [Car import rules](/business/guides/car-import-pakistan/) · [Import and export licence](/business/guides/import-export-licence-pakistan/)

## Questions people ask

### What is the customs duty on an excavator in Pakistan?

0% in the 2026-27 tariff (PCT 8429.5200), with no additional customs duty or regulatory duty. You still pay 18% sales tax, 3% value addition tax if you are importing to resell, and 1% advance income tax if you are a filer.

### Is customs duty different for used machinery?

No. The tariff has one rate per PCT code for new and used goods. Whether a used machine may be imported at all is decided by the Import Policy Order, not the tariff.

### What is the import duty on a dump truck?

Off-highway dumpers (PCT 8704.1090) pay 30% customs duty plus 4% additional customs duty. Construction companies registered with SECP and the Pakistan Engineering Council can pay 10% under the Fifth Schedule if the dumper isn't made locally.

### Is custom duty on machinery from China different from Japan?

Not for excavators, loaders and most cranes: their customs duty is 0% whatever the origin. We haven't checked China-Pakistan FTA rates on dumpers and crane lorries.

## Sources

- [Pakistan Customs Tariff FY 2026-27](https://download1.fbr.gov.pk/Docs/20268251181330180Tariff-2026-27.pdf), FBR (accessed 17 Oct 2026)
- [Pakistan Customs Tariff FY 2025-26](https://download1.fbr.gov.pk/Docs/20258111683941732Tariff-2025-26.pdf), FBR (accessed 17 Oct 2026)
- [S.R.O. 1063(I)/2026: Additional Customs Duty](https://download1.fbr.gov.pk/SROs/20266301763307131063-2026.pdf), Revenue Division / FBR (accessed 17 Oct 2026)
- [S.R.O. 1064(I)/2026: Regulatory Duty](https://download1.fbr.gov.pk/SROs/202663017637155381064-2026.pdf), Revenue Division / FBR (accessed 17 Oct 2026)
- [S.R.O. 1065(I)/2026: regulatory duty on commercial import of used vehicles](https://download1.fbr.gov.pk/SROs/202663020651815SRO1065.pdf), Revenue Division / FBR (accessed 17 Oct 2026)
- [Fifth Schedule to the Customs Act, 1969 (updated 30 June 2026)](https://download1.fbr.gov.pk/Docs/2026825118858478FifthSchedule2026-27.pdf), FBR (accessed 17 Oct 2026)
- [Sales Tax Act, 1990 (updated up to 30 June 2026)](https://download1.fbr.gov.pk/Docs/20267171373418951SalesTaxAct1990updatedupto30.06.2026.pdf), FBR (accessed 17 Oct 2026)
- [Income Tax Ordinance, 2001 (amended up to 30 June 2026), Twelfth Schedule](https://download1.fbr.gov.pk/Docs/2026724177725705IncomeTaxOrdinanace2001.pdf), FBR (accessed 17 Oct 2026)
- [Withholding Income Tax Rate Card, Tax Year 2027](https://download1.fbr.gov.pk/Docs/202681113864992WithholdingTaxRatesCard2027.pdf), FBR (accessed 17 Oct 2026)
- [Import Policy Order, 2022, consolidated Version-20](https://customspk.com/wp-content/pdf/2022/2022_SRO_0545_Ver20.pdf), Ministry of Commerce (consolidated text via customspk.com) (accessed 17 Oct 2026)
- [The Customs Act, 1969 (amended up to 30 June 2026)](https://download1.fbr.gov.pk/Docs/20268241784853463Customs-Act-1969.pdf), FBR (accessed 7 Oct 2026)