Impact of New FBR Ruling: Rising Prices for Which Mobile Phone Brands?

There is bad news for all mobile phone lovers in Pakistan. The Federal Board of Revenue (FBR) significantly increased the customs value on the import of almost all mobile phones. It implies that users will soon witness an increase in prices for renowned mobile phone brands.

The Directorate General of Customs Valuation Karachi, which comes under FBR, significantly increased customs values on the import of 1,160 models of famous branded mobile phones. According to a reliable source, a new ruling was passed to increase customs values on mobile phones.

The list of brands whose customs values have been increased is as follows:

• Apple
• Huawei
• Infinix
• iTel
• Lenovo
• Meizu
• Motorola
• Nokia
• OPPO
• Samsung
• Sony
• Tecno
• VIVO
• XIAOMI
• REALME
• ONEPLUS
• HONOR
• TCL
• ALCATEL
• Sea Shark
• X TELL
• ZTE
• SHARP

Moreover, the ruling said that used or refurbished mobile phones imported by bona fide passengers shall also be evaluated based on the customs values given as an allowance for their depreciation. They are also incorporated into the tabulated values.

For the evaluation of mobile phone brands and models that are imported in commercial quantity but not mentioned in the enclosed annexure, the clearance collectorates are instructed to assess those under Section 81 of the Customs Act, 1969. Afterward, they will have to send a reference to the Directorate for the final assessment of values.

Furthermore, a few of the older models shown in the existing ruling have reached their end of life (EOL), and therefore they need to be considered for depreciation accordingly. Therefore, the directorate has undertaken an exercise to assess the value of mobile phones under Section 25A of the Customs Act, 1969.

The stakeholders requested that the values of the mobile phones be revised keeping in view the aging of the mobile phone models, and a reasonable minimal depreciation in the evaluated value should be extended in accordance. This is because few of the mobile phone models cited in the Valuation Ruling are old, but their assessable customs values are pretty high.

For this purpose, the clearance data for 90 days has been retrieved and scrutinized. Afterward, a market inquiry was carried out and analyzed in light of the Directorate’s Office.

The directorate also carried out a market survey, and numerous mobile markets were examined to check the actual prices of mobile phones. Subsequently, the values of the subject goods were assessed based on available data collected and the exercise conducted.

Previously, the values of mobile phones were assessed under Section 25A of the Customs Act, 1969 vide Valuation Ruling No. 1732/2023. The existing Valuation Ruling was around 9 months old, and the customs values assessed were not in line with the existing international market.

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