FBR announces new duty drawback rates for tyre and rubber exports

The Federal Board of Revenue (FBR) has announced a new duty drawback rate for exported tyres and rubber products made from imported raw materials. The new rates apply to goods exported from 27 October 2026.

Duty drawback is allowed at a fixed rate of the customs duty already paid on the imported raw materials. The covered products include tyres and tubes for trucks, buses, cars and jeeps, agricultural tractors, motorcycles, scooters, rickshaws and trolleys, bicycles, and solid rubber tyres.

The raw materials covered include natural and synthetic rubber, carbon black, nylon tyre cord, bead wire, zinc oxide, antioxidants and other inputs used in making rubber products.

For tyres, the rate is 0.38 percent of FOB value for truck, bus, car and jeep tyres, and 0.32 percent for agricultural tractor and ultra light truck tyres. Motorcycle, scooter, rickshaw, trolley and ultra light vehicle tyres carry 1.45 percent, and bicycle tyres 1.13 percent.

For tubes, the rate is 0.97 percent of FOB value for truck, bus, car and jeep tubes, 0.13 percent for agricultural tractor tubes, and 0.87 percent for tubes of motorcycles, scooters, rickshaws, trolleys and ultra light vehicles. Flaps of all sizes carry 0.17 percent. Solid rubber tyres are set at 0.07 rupees per kilogram.

To qualify, goods must be exported from Pakistan. Claims must be filed with the relevant customs officer within 210 days of export, or within 180 days of the foreign exchange realisation date shown in the bank credit advice issued under State Bank of Pakistan instructions, as stated in the notification.

Exporters must claim the drawback on imported raw materials in the goods declaration under section 131 of the Customs Act 1969 and in their other export documents.