Customs duty together with the commercial tax are collected at the point of entry and the time of clearance of imported goods. Import tariff covers 21 sections of 98 chapters, consisting of 1241 headings and 6062 sub – headings ( denoted by 8 digits ) based on the Harmonised Commodity Description and Coding System. There are 22 bands of import tariffs ranging from 0 to 40%. Raw materials and other essential imports are taxed at very low rates, while the highest rate is applied to luxury items.