Mobile Phones to Become More Expensive as FBR Announces New Valuations

“The prices of well-known mobile phone brands are poised to undergo an increase in Pakistan, following a significant surge in customs values for the import of nearly all models of mobile phones into the country.

In a recent ruling, the Directorate General of Customs Valuation Karachi has substantially elevated customs values for the import of 1,160 models from renowned branded mobile phones, according to reliable sources at ProPakistani.

The customs values have been increased for brands including Apple, Huawei, Infinix, ITEL, Lenovo, Meizu, Motorola, Nokia, OPPO, Samsung, Sony, Tecno, VIVO, XIAOMI, REALME, ONEPLUS, HONOR, TCL, ALCATEL, Sea Shark, X TELL, ZTE, and SHARP.

The ruling specifies that used or refurbished mobile phones imported by legitimate passengers will be assessed based on customs values, considering depreciation allowances incorporated in the provided tabulated values.

For assessment of brands and models imported in commercial quantity but not listed in the enclosed annexure, the clearance Collectorates are instructed to assess them under Section 81 of the Customs Act, 1969, and then refer to the Directorate for the final determination of values.

Previously, mobile phone values were determined under Section 25A of the Customs Act, 1969, through Valuation Ruling No. 1732/2023.

 The existing Valuation Ruling, approximately nine months old, did not accurately reflect the prevailing international market conditions.

Additionally, some models mentioned in the existing ruling have reached their End of Life (EOL) and need to be considered for depreciation accordingly.

 Therefore, the Directorate has conducted an exercise to determine the values of mobile phones under Section 25A of the Customs Act, 1969.

Stakeholders have requested a revision of values, considering the aging of mobile phone models, and a reasonable minimal depreciation in the assessable value.

 The directorate retrieved and scrutinized 90 days’ clearance data, conducted a market inquiry, and examined the collected data/information in light of the Directorate’s Office.

The values of the subject goods have been determined based on the available data and the market survey, taking into account the actual prices of mobile phone devices observed in various markets.”

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