FBR proposes duty and tax deferment procedure for livestock imports, meat exports

According to Profit, the Federal Board of Revenue has floated draft changes to the Customs Rules, 2001, letting cattle, sheep and goats enter duty-free for fattening and later export. Under SRO 1752(I)/2026, issued on October 7, eligible livestock would also be spared customs charges, sales tax, excise and withholding tax. Objections and suggestions are invited for seven days after publication in the Gazette.

Under the scheme, Track A involves raising imported animals before re-exporting them, while Track B covers slaughter, processing and export of meat. Track B would begin once final rules are notified, whereas Track A requires its own clearance under the Export Policy Order. Operators would need customs and animal health approval, traceability records and a financial guarantee against deferred levies.

Cattle would have to be slaughtered or shipped out within 180 days once quarantine ends, sheep and goats within 120 days, and meat within 120 days of slaughter. New and expanding livestock units would have a 24-month window to commission, extendable by 12 months, but they must send abroad 80% of the animals brought in under Track A or 80% of output by value under Track B, keeping that ratio for five financial years. Up to 10% of animals or meat may be sold locally with approval and payment of duties and surcharge, and mortality ceilings are 3% for cattle, versus 5% for sheep and goats.