Conversely, commercial importers dealing with new mobile phones will be subject to higher customs values, providing greater relief to international passengers bringing in mobile phones.
The rationale behind the new valuation ruling, number 1834 of 2023, is to benefit overseas Pakistanis by maximizing the depreciation rates. Phones up to five years old brought by incoming international passengers will now face a depreciation rate of up to 60 percent.
A progressive taxation policy has been implemented to facilitate individuals bringing in older phones for personal use, while commercial importers will not receive any relief from the new ruling.
New models of mobile phones will be imported at higher values compared to older models, aiming to reduce under-invoicing in existing and new models of branded mobile phones.
The Federal Tax Ombudsman (FTO) directed the Federal Board of Revenue (FBR) to apply appropriate depreciated values based on physical condition and model to prevent unwarranted overcharging.
Consistent and uniform valuation methods should be applied by the FBR, considering the declared value unless clear evidence of mis-declaration exists.
Under the new ruling, used or refurbished mobile phones imported by genuine passengers will be assessed on customs values, taking into account the allowance for depreciation as incorporated in the provided tabulated values.
For brands and models imported in commercial quantity but not listed in the annexure, clearance collectorates are advised to assess them under Section 81 of the Customs Act, 1969, and then refer to the Directorate for the final determination of values.