Prices of Mobile Phones in Pakistan Expected to Rise Soon
The Directorate General of Customs Valuation Karachi recently introduced changes, which may anticipate in increasing the prices of mobile phones in Pakistan. Customs duty rates on import of 1,160 mobile phone models of different brands have been rationalized and additional models have been included in the list of valuation rulings. The new valuation ruling 1834/2023 was released by the Directorate on Thursday, December 14, 2023.
New Valuation Ruling
As part of this update, the Directorate has released a comprehensive 25-page list detailing the revision of custom tariffs for branded mobile phones. The main purpose of this change is to reduce the margin of under invoices, especially on existing and new cell phone models.
The impact of this new decision affects various well-known brands such as Apple, Huawei, Samsung, OnePlus, Nokia and others. Customs prices have been adjusted for a total of 1,160 brand mobile phone models. It is worth noting that one of the important features of this decision is the inclusion of many new brands, which aims to more accurately assessment of duties and taxes for the importation of mobile phones.
Previous Valuation Ruling
Previously, the price of mobile phones was determined by Section 25A of the Customs Act 1969, Valuation Ruling No. 1732/2023. However, the decision to cut the rate almost nine-months-old does not accurately reflect the prevailing conditions of the international market. In addition, some of the models mentioned in the decision have reached the end of life (EOL) and have taken into account depreciation issues.
To address this problem, the Directorate has launched an exercise to determine the value of mobile phones under Section 25A of the Customs Act, 1969. Stakeholders stressed the need for revised values due to the aging of mobile phone models and supporting depreciation. . A detailed analysis was performed by searching and reviewing 90 days of clearance data. Market research has been done and the Directorate has conducted research in various markets to monitor the actual prices of mobile phone devices.
Used and Refurbished Mobile Phones
The ruling emphasizes that used or refurbished mobile phones carried by bona fide passengers will be assessed at their customary value, taking into account depreciation. This decision by Directorate General of Customs Valuation Karachi also provides guidelines for evaluating brands and models that are not included in the Annex. Collectors are advised to approach the Directorate for assessment of such cases and final determination of values under Section 81 of the Customs Act, 1969.
These changes also reflect the efforts of the Directorate General of Customs Valuation to align customs values with market realities and ensure a fair and accurate assessment of duties and taxes on imported mobile phones. However, the expected increase in the prices of mobile phones in Pakistan reflects the dynamics that affect local consumers in the global market.
Also check: PTA Tax on iPhone All Models – All You Need to Know!