FBR raises customs values on used cellphones

KARACHI: The Federal Board of Revenue (FBR), through its Directorate General of Customs Valuation, has increased the customs values for 62 models of old and used mobile phones, aligning duty and tax assessments with prevailing market rates.

The revised benchmarks were issued under Valuation Ruling No. 2070 of 2026 on Thursday, replacing the earlier Ruling No. 2035 introduced in January.

Prior to finalising the update, the Directorate held consultations with stakeholders on April 13.

The new valuation applies specifically to commercially imported used mobile phones without packaging or accessories.

The revision comes shortly after senior FBR officials assured a parliamentary committee of the National Assembly of Pakistan that mobile phone rates would be reduced in the upcoming budget, indicating a shift in policy direction.

Data shows that the most significant increases were recorded in Samsung and Google Pixel devices, particularly older and mid-range models that were previously undervalued.

Apple devices also saw upward revisions, although these were comparatively moderate, especially for newer flagship models.

Among Apple’s lineup, the iPhone 15 Pro Max registered a modest increase of 9.78%, while older models such as the iPhone SE (2nd generation) saw sharper rises. Notably, the iPhone XS Max and iPhone SE (3rd generation) remained unchanged.

Samsung recorded some of the steepest increases, particularly in models like the Samsung Galaxy S22+ 5G, Samsung Galaxy S21+ 5G, and older S10 series devices. In contrast, the Samsung Galaxy S23 Ultra saw a relatively modest increase of 19.61%.

Google Pixel devices experienced the highest average increase, with models such as the Google Pixel 5 and Google Pixel 6A rising by as much as 161% to nearly 194%, reflecting a major reassessment of their resale value.

The increase in customs values will directly raise the duty and tax burden per handset. Importers dealing in second-hand, mid-range, and older flagship devices are expected to face the sharpest cost increases, while traders focusing on newer premium Apple devices may see a comparatively smaller impact.

The move is also likely to boost government revenue, as higher valuations apply across all imported mobile devices.

The revision comes amid a surge in mobile phone imports, which rose by 27.84% to $1.444 billion during the first nine months of the current fiscal year, compared with $1.129 billion in the same period last year.

Despite the upward revision, the FBR has retained key elements of the existing regulatory framework, including rules related to six-month activation, higher declared values, and freight adjustments.

Valuation rulings issued under Section 25A of the Customs Act, 1969, serve as administrative tools to standardise customs values where declared prices are considered unreliable, helping to minimise disputes and ensure uniform tax assessment.