In a move that is set to impact consumers across Pakistan, the Directorate General of Customs Valuation Karachi has announced a significant increase in customs values for the import of 1,160 models of popular branded mobile phones.

This decision is expected to result in a surge in prices for renowned mobile phone brands in the country.

The latest ruling encompasses an extensive list of mobile phone brands, including Apple, Huawei, Samsung, OnePlus, and more. The customs values have been revised for major players in the industry, potentially leading to an overall increase in the cost of mobile phones for consumers.

Used and refurbished phones

The Directorate's ruling also touches on used and refurbished mobile phones, stating that these will be assessed based on customs values, taking into account depreciation. This inclusion means that even bonafide passengers importing pre-owned devices may face higher costs due to the updated valuation.

For brands and models not explicitly mentioned in the ruling, the clearance Collectorates are advised to assess them under Section 81 of the Customs Act, 1969. Subsequently, a reference will be forwarded to the Directorate for the final determination of their customs values.

Valuation ruling

The previous Valuation Ruling, No. 1732/2023, in effect for about nine months, is now replaced due to its perceived lack of reflection of the current international market conditions. The Directorate cites the need for a more up-to-date assessment, especially considering the End of Life (EOL) status of some older models.

Stakeholders in the mobile phone industry have requested a revision of values, emphasizing the aging of certain mobile phone models. The appeal seeks a reasonable and minimal depreciation in assessable values, particularly for older models where the existing customs values are deemed excessively high.

To arrive at the revised customs values, the Directorate conducted a comprehensive market inquiry, scrutinizing 90 days’ worth of clearance data. This thorough examination aimed to ensure that the updated values align with the prevailing market conditions, reflecting the true worth of the imported mobile phone models.