ISLAMABAD: The Federal Board of Revenue has introduced significantly highercustoms valuation rates for used and refurbished smartphones importedcommercially into Pakistan, with flagship models from Google Pixel andOnePlus series seeing sharp increases compared to previous assessments. Thelatest ruling sets fixed assessable values that disregard the physicalcondition or grade of the devices, aiming to curb under-invoicing andstandardize duty collection across the country. Importers now facesubstantially higher taxes on popular models less than two years old, amove that industry stakeholders say could reduce the inflow of affordablepremium handsets while generating additional revenue for the nationalexchequer.
The Directorate General of Customs Valuation notified the revised valuesafter extensive stakeholder consultations held on August 12, September 26and December 15 of the preceding year. Import data covering a continuousninety-day period was thoroughly analysed alongside detailed marketinquiries conducted in major commercial hubs including Karachi, Lahore andIslamabad. The exercise revealed consistent patterns of undervaluation indeclared prices, prompting authorities to establish uniform referencevalues applicable irrespective of cosmetic or functional condition of theimported units.
Newer Google Pixel models received notably elevated valuations with thePixel 9 Pro XL fixed at 260 US dollars, the Pixel 9 Pro at 195 dollars andthe standard Pixel 9 at 150 dollars for commercial consignments arrivingwithout original packaging or accessories. In contrast older generationsattracted lower figures with the Pixel 8 Pro assessed at 188 dollars andthe Pixel 8 at only 98 dollars, reflecting rapid depreciation typical inthe secondary smartphone market yet still representing an upward revisionfrom earlier benchmarks used by customs appraisers.
A parallel adjustment was applied to the OnePlus portfolio where therelatively recent OnePlus 12 received a valuation of 184 dollars while themore affordable OnePlus 12R was pegged at 105 dollars. Previous-generationdevices showed markedly reduced figures with the OnePlus 11 valued at 92dollars, the OnePlus 10 Pro at 65 dollars and the OnePlus 10T at 60dollars. These tiered valuations attempt to mirror international secondarymarket realities while protecting domestic revenue interests.
A critical condition attached to the new regime requires that everyimported used smartphone must have been activated at least six months priorto its export consignment to Pakistan. Importers are obligated to declarethe exact activation date which customs assessing officers willindependently verify during the clearance process through available devicediagnostic tools or network registration records. This measure seeks toprevent the import of brand-new units disguised as used phones, a practicethat previously allowed evasion of higher duties applicable to freshcommercial shipments.
The ruling explicitly applies only to phones imported in commercialquantities without original retail packaging and accompanying accessories.Personal baggage allowances for returning residents and genuinenon-commercial imports remain governed by separate existing policies. Forsmartphone brands and specific models that appear frequently in thePakistani import stream but were not explicitly listed in the schedule, thenotification directs importers to determine applicable values underSections 25(5) and 25(6) of the Customs Act 1969 through reference tocontemporaneous transaction data or computed methods.
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Market observers anticipate that the upward revision will translate intonoticeably higher landed costs for refurbished premium Android devices,potentially reducing their competitiveness against locally assembled orofficially distributed new phones. Traders dealing in the grey marketsegment have already expressed concern that narrower profit margins couldforce many smaller importers to scale back operations or shift focus towardlower-valued mid-range and entry-level models from other brands.
Revenue officials maintain that the revised structure promotestransparency, minimizes discretionary assessments and protects legitimatebusinesses from unfair competition arising from deliberate undervaluation.The fixed-value approach also simplifies clearance procedures forfrequently imported models by eliminating protracted valuation disputesthat previously delayed consignments at ports and dry ports across thecountry.
The timing of the notification coincides with growing official emphasis ondocumentation of the informal mobile phone trade and increasing regulatoryoversight of the used-device supply chain. As Pakistan continues to grapplewith a substantial import bill for electronics, authorities appeardetermined to capture more accurate revenue from a segment that hasexpanded rapidly due to high local prices of brand-new flagship smartphones.
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