Used Mobile Phones to Get Pricier: Pakistan Customs Issues Fresh Valuation Order for 62 Models

Pakistan’s Directorate General of Customs in Karachi has tightened the screws on used phone imports, slapping sharp price revisions on 62 handset models across five major global brands. The move signals a harder line on valuation of secondhand mobile phones entering the country, a market that has historically thrived on affordable imported devices.

The new customs valuation ruling sets revised import values that will drive up costs for importers of older Apple iPhones, Samsung Galaxy models, Google Pixel phones and OnePlus devices. The revision takes effect under the freshly issued Valuation Ruling No. 2070/2026, issued Thursday by the directorate, and marks a significant recalibration from its previous approach.

What Changed: The Customs Reversal

The story behind this valuation hike reveals a complex regulatory tug-of-war between customs authorities, importers, and market realities.

Just weeks ago, the Directorate had issued Valuation Ruling No. 2035/2026, which established the original import values for these 62 used phone models. But that ruling didn’t stick. Importers and stakeholders challenged it before the Director General under Section 25D of the Customs Act, 1969, arguing that the Directorate had failed to properly consider critical pricing data.

On April 3, 2026, the Director General issued Order-in-Revision No. 05/2026, rescinding the earlier ruling entirely. The order acknowledged that petitioners had valid points: the Directorate had not adequately factored in pricing data for “similar goods” under Section 25(6) of the Customs Act. Importers’ concerns about ignoring international auction prices also rang true.

Directed to re-evaluate, the Directorate conducted a fresh assessment, this time engaging directly with stakeholders through formal meetings. The problem: importers and industry players failed to produce the documentary evidence they’d been asked to provide, including auction price data that might have supported their arguments for lower valuations.

The New Valuation Methodology

With limited evidence from the private sector, the Directorate shifted to its own investigative approach.

Analysts examined 90 days of import data and launched market inquiries under Section 25(7) of the Customs Act. After adjusting for profit margins and calculating Cost, Insurance, and Freight (C&F) values, the standard for customs valuation, the Directorate finalized the new, higher valuations.

The critical detail that separates this ruling from the last: these customs values now apply regardless of the specific grade or condition of the used phones being imported. Whether an iPhone is in pristine condition or shows significant wear, the same valuation applies. This removes a potential loophole that importers might have exploited.

There’s one qualification built into the system. Old and used mobile phones must have been activated at least six months before export to Pakistan. Importers are required to declare the activation period, which will be verified by assessing officers at the respective Collectorate. This requirement aims to prevent the import of unreasonably old or defective devices.

Which Phones Are Affected?

The new ruling covers 62 specific models across five brands:

For used phone models from these brands, or from other manufacturers, that aren’t specifically named in the ruling, Collectorate officers have been instructed to assess them under Sections 25(5) and 25(6) of the Customs Act. This gives customs officials discretion to apply similar valuation logic to unlisted models, potentially extending the impact beyond the explicit 62 listed.

Market Impact: What This Means for Importers and Consumers

This valuation shift will ripple through Pakistan’s used phone market, which has long served price-sensitive consumers unable to afford new devices.

For importers and traders, the immediate impact is clear: higher customs values mean higher duties and taxes on each handset cleared through customs. These increased costs will likely flow to retailers and, eventually, consumers. Used phone prices in Pakistan’s retail market, already influenced by exchange rate volatility and supply constraints, will face new upward pressure.

The timing matters. Pakistan’s rupee has remained under pressure, and imported goods already carry elevated costs. Adding steeper customs valuations to that environment could reduce demand for used imports, potentially benefiting domestic refurbishment businesses or those dealing in new phone inventory.

For small importers operating on thin margins, the valuation hike presents a genuine challenge. Those who secured inventory at lower duty rates before this ruling took effect will face disadvantageous competition with new imports now subject to higher valuations.

The Regulatory Backdrop: Customs Valuation in Pakistan

This decision reflects broader customs valuation challenges in Pakistan, where determining fair market values for secondhand goods remains contentious.

Under the Customs Act, 1969, customs authorities are tasked with assessing the “transaction value” of imports, essentially, what the goods are genuinely worth. For used goods with no standard retail pricing, this becomes inherently judgment-based. Customs can draw on comparable sales data, market inquiries, and standardized pricing, but sources of reliable data for used electronics remain limited.

International auction prices (cited by importers in their challenge) are one potential data source, reflecting what similar used phones actually sell for globally. But gathering and verifying this data requires substantial work. The Directorate’s shift to examining 90-day import statistics suggests a more methodical, data-driven approach, though it also reflects frustration with importers’ inability or unwillingness to provide auction evidence.

The requirement that used phones be activated six months prior to export also signals a policy concern: preventing the import of devices that are effectively “as good as new” but classified as used to avoid higher tariffs on new phones.

Stakeholder Response and Future Outlook

The Directorate’s decision closes one chapter but potentially opens another.

By rescinding Ruling 2035/2026 and issuing a revised valuation, the authorities have reset expectations. Importers who believed they’d won a favorable assessment have been disappointed. Those already holding inventory purchased at lower duty rates face margin compression. The regulatory clarity, however, may provide some relief; they now know the new baseline, even if it’s less favorable than before.

Looking ahead, expect continued tension between customs authorities seeking to maximize revenue and importers seeking competitive tariff treatment. The used phone market in Pakistan remains substantial enough that stakeholders will likely continue engaging with, and occasionally challenging, customs valuations.