The Federal Board of Revenue (FBR) has taken an important decision regarding the commercial import of used mobile phones and accessories, as Customs has withdrawn the increased duties on these imports.
The Directorate of Customs Karachi has informed all dry ports and import points about the decision. According to the FBR, the customs valuation of used mobile phones and accessories had been increased from $25 to $110. However, the increased duties have now been withdrawn.
The import of used mobile phones and accessories will continue under the old valuation until the matter is reviewed and a final decision is made. The decision means commercial imports of used mobile phones and mobile accessories will proceed at the previous valuation for now. This is expected to prevent an immediate increase in the cost of imported used mobile phones and accessories in the local market.
Rizwan Irfan, the president of the Karachi Electronics Dealers Association, said the matter was already in court and duties could not be increased. He said imports under the old duty structure would ensure that used mobile phones and accessories do not become more expensive for consumers.
The Directorate of Customs Karachi has formally communicated the decision to all dry ports and import points. The move is being seen as a significant relief for importers, dealers and buyers in the used mobile phone market.
Last week, it had been reported that used imported mobile phones were set to become more expensive in Pakistan after the government raised their customs value under a new valuation order. The decision affected 62 models of well-known brands and is expected to significantly increase import costs.
The Karachi Customs Valuation Directorate issued a new order revising the customs value of old and used mobile phones, according to FBR sources and official documents cited in the report. With the new valuation in place, 62 mobile phone models from various famous companies would become costlier. Sources said the change was likely to cause a significant increase in the overall cost of importing second-hand mobile phones.
According to the document, the new law will apply to all used mobile phones being imported. It also makes clear that the physical condition of the handset will not matter for valuation purposes.
That means whether a phone is slightly used or heavily worn, the revised customs value framework will still apply in the same way. This is expected to directly affect importers dealing in older handsets across multiple price segments.
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