FBR Imposes 11% Custom Duty on 4G MiFi and Mobile WiFi Modems

The Federal Board of Revenue (FBR) has issued a ruling imposing an 11% custom duty on the import of 4G MiFi and Mobile WiFi modems. This decision comes after an audit by the Directorate of Post Clearance Audit (Central) Lahore revealed that these devices had been previously misclassified.

The audit uncovered discrepancies in the classification of Wi-Fi/Mi-Fi modems from 2015 to 2017, leading to a contravention report and a Show Cause Notice. Following a thorough review of the arguments and relevant tariff provisions, the Customs Classification Committee determined that the correct classification for these devices is under PCT heading 8517.6220.

This heading pertains to devices designed for data reception, conversion, and transmission, accurately reflecting the primary functions of 4G MiFi and Mobile WiFi modems. The previous misclassification under PCT heading 8517.6940 was deemed incorrect.

The imposition of the 11% custom duty will have implications for importers and retailers of these devices. It is expected to increase the cost of these products for consumers, potentially affecting market demand. However, the FBR’s decision aims to ensure that the correct tariff is applied to these products, ensuring fair competition and revenue generation for the government.

The FBR’s ruling underscores the importance of accurate customs classification to prevent revenue leakage and maintain a level playing field for businesses operating in Pakistan. It also highlights the ongoing efforts of the tax authority to address misclassification issues and ensure compliance with tariff regulations.