Duties on used phones hiked by 175%

The federal government has increased customs valuation on used imported mobile phones by up to 175%, making 62 models from various companies more expensive, according to a document available with The Express Tribune.

The Federal Board of Revenue's (FBR) Directorate General of Customs Valuation has issued a new customs valuation ruling for imported mobile phones, stating that taxes will now be collected based on these newly set values. Officials said the increase in customs valuation will raise the amount of tax imposed on used imported phones.

Following the tax increase under the new valuation ruling, 62 models of various well-known brands have become more expensive. The new law will apply to all used phones, regardless of their condition. Imported phones must have been activated at least six months prior to shipment. Importers will be required to provide details of phone activation, which will be verified by customs officials.

The previous valuation ruling has been repealed and a new ruling, numbered 2070, has been enforced. New prices have been set based on market and import data, which is expected to significantly increase the cost of importing old mobile phones. Under the new ruling, the customs valuation for the used iPhone 15 Pro Max has been increased from $460 to $505. Duties and taxes on imports will now be collected on $505 instead of $460. The valuation for the used iPhone 15 Pro has been increased from $390 to $472, for the iPhone 15 Plus from $320 to $390, and for the iPhone 15 from $310 to $378.

The valuation for the used iPhone 14 Pro Max has been increased from $360 to $413, for the iPhone 14 Pro from $290 to $350, and for the iPhone 14 from $210 to $275. For the used iPhone 13 Pro Max, valuation has increased from $295 to $374; for the iPhone 13 Pro from $225 to $293; and for the iPhone 13 from $170 to $225. For the used iPhone 12 Pro Max, valuation has increased from $215 to $274; for the iPhone 12 Pro from $155 to $222; and for the iPhone 12 from $120 to $156.

For used Samsung devices, the Galaxy S23 Ultra valuation has increased from $255 to $305; the Galaxy S23 Plus from $160 to $260; and the Galaxy S23 from $140 to $250. The Galaxy S22 Ultra 5G valuation rose from $160 to $260; the Galaxy S22 Ultra Plus 5G from $75 to $180; and the Galaxy S22 5G from $80 to $130. The Galaxy S21 Plus 5G valuation increased from $69 to $150, and the Galaxy S21 5G from $50 to $110.

For used Google Pixel devices, the Pixel 9 Pro XL valuation increased from $260 to $348; the Pixel 9 Pro from $195 to $290; the Pixel 9 from $150 to $215; the Pixel 8 Pro from $188 to $215; the Pixel 8a from $98 to $120; the Pixel 7 Pro from $119 to $145; the Pixel 7 from $59 to $105; the Pixel 6 Pro from $55 to $110; the Pixel 6 from $32 to $94; and the Pixel 6a from $28 to $82.

For used OnePlus devices, the OnePlus 12 valuation increased from $184 to $211; the OnePlus 12R from $105 to $176; the OnePlus 11 from $92 to $121; the OnePlus 10T from $60 to $90; and the OnePlus 10 Pro from $65 to $113. The FBR has clarified that for mobile phones imported commercially without packaging or accessories, the customs valuation will be the same as listed in the table, regardless of the phone's condition or grade. Additionally, such phones must have been activated at least six months prior to export. The importer will be required to declare the activation period, which will be verified by customs officials.

If a brand or model is not listed in the schedule and is imported commercially, its valuation will be determined under the relevant provisions of the Customs Act, 1969. If the invoice price or declared value exceeds the set customs valuation, duties and taxes will be applied on the higher amount. For air shipments, the difference between air and sea freight will also be added to the valuation. All customs collectorates have been directed to ensure strict compliance with this ruling and to immediately inform the relevant directorate of any irregularity or ambiguity.