FBR’s New Valuations To Increase Mobile Prices
Customs values for popular mobile brands surge in Pakistan due to increased import customs values for nearly all mobile phone models, according to informed sources. The Directorate General of Customs Valuation Karachi has raised customs values significantly for 1,160 models of well-known branded mobile phones through a recent ruling.
The affected brands include 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 also specifies that customs values for used or refurbished mobile phones imported by legitimate passengers will be assessed, considering the depreciation allowance incorporated in the tabulated values.
For brands and models not listed but imported in commercial quantity, clearance Collectorates are advised to assess them under Section 81 of the Customs Act, 1969. They should then forward a reference to the Directorate for the final determination of values.
Previously, mobile phone values were determined under Section 25A of the Customs Act, 1969, as per Valuation Ruling No. 1732/2023. However, the existing valuation was outdated, not reflecting the current international market conditions.
Some old models mentioned in the ruling had reached their End of Life (EOL) and needed depreciation consideration. To address this, the Directorate conducted an exercise under Section 25A of the Customs Act, 1969.
Stakeholders requested a revision of values, considering the aging of mobile phone models. They argued for a reasonable minimal depreciation in assessable values, especially for older models with high customs values. To determine values, 90 days’ clearance data was scrutinized, a market survey conducted, and actual prices observed in various markets, leading to the establishment of values for the subject goods.