Branded mobile phones: Customs’ values on import of 1,160 models revised

ISLAMABAD: The Directorate General of Customs Valuation Karachi has rationalized customs values on the import of 1,160 models of a wide range of branded mobile phones and added a number of new models to the list of valuation ruling.

In this regard, the directorate has issued a new valuation ruling number 1834 of 2023 here on Thursday.

The directorate has also issued a list of 25 pages of branded mobile phones where customs values have been revised.

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As a result of the new ruling notified on Thursday, the margin of under-invoicing would be decreased in the existing and new models of the branded mobile phones.

The directorate has fixed new customs values on various brands of Apple, Huawei, Infinix, ITEL, Lenovo, Meizu, Motorola, Nokia, OPPO, Samsung, Sony, Tecno, VIVO, XIAOM, REALME, ONEPLUS, HONOR, TCL, ALCATEL, Sea Shark, X TELL, ZTE and SHARP.

Overall, the list of the valuation ruling revealed that the values have been revised on the import of 1160 models of branded mobile phones.

One of the main features of the new ruling is that a large number of new brands have been added for accurate assessment of duties and taxes on the import of new branded mobile phones.

Earlier, the values of mobile phones were determined under Section 25A of the Customs Act, 1969 vide Valuation Ruling No. 1732/2023. The existing Valuation Ruling was about nine months old and the customs values determined therein were not reflective of prevailing international market. Furthermore, some old models given in the existing ruling have reached their End of Life (EOL) and needed to be considered for depreciation accordingly. Therefore, an exercise has been undertaken by this directorate to determine the values of mobile phones under section 25A of the Customs Act, 1969.

The stakeholders requested that the values should be revised keeping in view the aging of the mobile phone models and a reasonable minimal depreciation in the assessable value should be extended accordingly since some of the mobile phone models mentioned in the Valuation Ruling are old but their assessable customs values are very high. For this purpose, 90 days’ clearance data has been retrieved and the same has been scrutinized. Subsequently, market inquiry has been conducted and examined in the light of the Directorate’s Office.

The directorate has conducted market survey and various markets were checked to observe the actual prices of mobile phone devices. On the basis of available data/information collected and exercise conducted, the values of subject goods have been determined.

The ruling added that the used/refurbished mobile phones imported by bona fide passengers shall also be assessed on the customs values given as allowance for their depreciation is also incorporated in the said tabulated values.

For assessment of brands and models which are imported in commercial quantity but are not included in the enclosed annexure, the clearance Collectorates are advised to assess those under Section 81 of Customs Act, 1969 and then forward a reference to the Directorate for final determination of values thereof, the ruling added.

Copyright Business Recorder, 2023