Duties, costs and risks for Pakistani online sellers (2026)

By the Mistri Tech team · Checked 1 November 2026

Short answer (as of November 2026): there is no duty-free small-parcel allowance into the US or the EU any more, and Pakistani goods entering the US now carry an extra 10% on top of normal duty. Single low-priced parcels from Pakistan rarely make money. Sell higher-value, light products, quote duties-included prices, ship in bulk where you can, or start with digital products and services.

United States: what changed and where it stands

• No de minimis. The $800 duty-free allowance was suspended for all countries from 29 August 2025. An executive order of 20 February 2026 kept the suspension in place regardless of value, origin or how the goods arrive. From 24 July 2026 CBP made the suspension indefinite for mail shipments and replaced the interim postal process with a new postal informal entry; a companion rule covers couriers and other modes. Every commercial parcel needs a customs entry and may pay duty.
• Postal parcels need a filer. Under the new postal entry, the owner, the buyer or a licensed customs broker files the entry, holds a customs bond and pays the duty to CBP; duty is no longer collected from the addressee on delivery. In practice most small sellers use an express courier that clears the parcel and bills duty to you or the buyer.
• IEEPA tariffs are gone. The Supreme Court struck down the IEEPA "reciprocal" tariffs on 20 February 2026 (Pakistan had been at 19%). A temporary 10% Section 122 surcharge replaced them from 24 February 2026 and expired on 24 July 2026.
• Section 301: Pakistan pays an extra 10%. USTR placed Pakistan in the 10% tier of its forced-labor Section 301 action. The duty applies to goods entered from 12:01 a.m. ET on 24 July 2026 and is added on top of the normal (MFN) duty for the product. Some products are exempt; check the HTS code of your item with your courier or a customs broker.

What to do: price for duty from the start. For a single parcel, the duty is normal duty for the product's HTS code plus 10%, plus courier clearance fees. Decide whether you quote "duties included" (DDP, fewer refused parcels and better reviews) or the buyer pays on delivery (cheaper headline price, more refusals).

European Union: the EUR 3 duty

• From 1 July 2026 parcels worth up to EUR 150 lost their customs duty exemption (Council Regulation (EU) 2026/382). A flat EUR 3 duty per item applies until 1 July 2028, when the EU customs data hub is due to replace it.
• An "item" is goods in the parcel that share the same tariff classification, not each piece. The Commission's own example: five T-shirts pay EUR 3; three T-shirts and a watch pay EUR 6. So a parcel of one product type pays less than a mixed parcel.
• Import VAT is unchanged. IOSS still collects VAT at the point of sale on parcels up to EUR 150, and the EUR 3 duty applies whichever VAT route is used.
• A separate EU handling fee on small parcels has been agreed in principle, but its amount and start date were not confirmed as of November 2026.

United Kingdom: GBP 135 rules

• For goods in parcels worth GBP 135 or less sold directly to UK consumers, the seller charges UK VAT at the point of sale, so an overseas seller selling direct usually has to register for UK VAT. When you sell through an online marketplace, the marketplace normally handles this VAT.
• Customs duty relief on these low-value parcels still applies as of November 2026, but the UK government confirmed in July 2026 that it will remove the GBP 135 duty relief; removal is expected by October 2028 at the latest. Plan UK pricing with that in mind.

Shipping cost reality

Courier costs from Pakistan often exceed the product cost for low-priced items. In the guide's worked example, sending a 1.2 kg pair of chappals to the US was budgeted at about $22, roughly a quarter of the $89 price. Get real quotes from express couriers (DHL, FedEx, UPS, and the international services of TCS and Leopards) and Pakistan Post for your exact weight and size, and check volumetric weight for bulky items.

Rule of thumb: if a product sells for under about $25 and must be shipped one at a time from Pakistan, it rarely makes money after courier costs, duties and marketplace fees. Raise the order value (bundles, sets, personalisation), ship in bulk to a warehouse abroad, or sell services and digital products instead.

Worked examples (illustrative)

These are the guide's five unit-economics examples, using illustrative assumptions at Rs 277 to $1. Etsy fees are updated to Etsy's November 2026 payment processing rate for Pakistan (6.5% + $0.30) on top of the 6.5% transaction fee and $0.20 listing fee. Replace every line with your own quotes.

Formula: profit per order = price minus (product + packaging + shipping + duties + platform and payment fees + ads + returns allowance). Aim for 25 to 30% or more after all costs.

Getting paid from Pakistan

• Marketplaces: Etsy pays Pakistan-based sellers through Etsy Payments with a Payoneer account, in US dollars, every Monday. Payoneer then withdraws to your Pakistani bank account; Payoneer may charge a withdrawal fee. See how to sell on Etsy from Pakistan.
• Direct clients: Payoneer offers Pakistani businesses USD, EUR and GBP receiving accounts and "Request a Payment" invoices that clients can pay by card or bank transfer. Larger B2B orders can be paid by bank transfer into your account in Pakistan.
• Services exporters and freelancers: on 6 April 2026 the State Bank of Pakistan ended the need to submit Form R for every export receipt. A one-time declaration of the services you export is made when you open the account, the Form R threshold rose to above $25,000, and banks must process export receipts within one working day. These changes are for IT and services exporters; goods sellers should ask their bank which export documents apply to them.
• Your own store: Stripe, PayPal and Shopify Payments do not list Pakistan as a supported country. See build your export store for options that do work.

Keep export proceeds coming through official banking channels. It keeps your tax records clean and lets you use the export facilities banks offer.

Currency

The rupee traded at about Rs 277 to the US dollar in October 2026 (interbank close Rs 276.80 on 27 October). Price in dollars, keep two to three months of working capital because payouts can lag, and recheck your prices every quarter or whenever the rate or courier rates move.

Marketplace suspension and returns

A shop can be closed overnight for policy breaches, intellectual-property complaints, late shipping or failed identity checks. Read the category rules, keep your ID, address and bank documents consistent, ship on time with tracking, and never copy brands. Build your own site and email list as a back-up.

Return shipping to Pakistan often costs more than the item. Use accurate size charts and photos, offer exchanges or partial refunds, and build a returns allowance (the examples use 5%) into the price.

Risk and what to do

Where to go next

Use the Niche Finder to filter for light, high-value or no-shipping niches, or browse categories that suit single parcels well, such as jewellery and gemstones, leather goods and religious and cultural items. Bulky goods such as onyx, marble and salt or home textiles usually need bulk shipping. Back to the Made in Pakistan guide.

This page is general information, not legal, tax or customs advice. Duty rates depend on the product's tariff code and change often; confirm with your courier, a customs broker or the relevant authority before you price.

Sources

Checked 1 November 2026: White House: Executive Order continuing the suspension of duty-free de minimis treatment (20 Feb 2026); Federal Register 2026-12669: indefinite suspension of de minimis for mail shipments and new postal informal entry (24 Jun 2026); USTR: USTR takes action in forced labor Section 301 investigations (23 Jul 2026); Clark Hill: new Section 301 forced-labor tariffs take effect 24 July 2026; GHY: US 10% Section 122 tariff in effect 24 Feb 2026, IEEPA tariffs cease; Blank Rome: Supreme Court overturns IEEPA tariffs; European Commission: EUR 3 customs duty on low-value parcels (29 Jun 2026); EU Access2Markets: EU applies EUR 3 customs duty per item on low-value e-commerce consignments; Council Regulation (EU) 2026/382 (EUR-Lex); GOV.UK: VAT and overseas goods sold directly to customers in the UK; GOV.UK: Reforming customs rules for low value imports (13 Jul 2026, updated 28 Oct 2026); VATupdate: UK low value import relief to be removed by October 2028; State Bank of Pakistan press release: new measures for IT exporters and freelancers (6 Apr 2026); Etsy Help: How do I use a Payoneer account with Etsy Payments?; Etsy Help: payment processing fees by country; pkrevenue.com: PKR vs USD interbank rates, 27 Oct 2026.