NextFin News - The Directorate General of Customs Valuation in Karachi has officially established new customs values for the import of 62 types of old and used branded mobile phones, a move designed to modernize the taxation framework for the country’s burgeoning secondary electronics market. According to Business Recorder, the directorate issued Valuation Ruling No. 2035 of 2026 on Monday, January 19, 2026, effectively superseding the previous ruling from mid-2024. The new regulations specifically target high-demand brands including Apple, Samsung, Google Pixel, and OnePlus, setting fixed Cost and Freight (C&F) values that will serve as the baseline for duty and tax assessments.
The decision to revise these values stems from a determination by the Federal Board of Revenue (FBR) that the existing valuation framework, which had been in place for over 18 months, no longer reflected the realities of the international market. Under the new ruling, a used iPhone 15 Pro Max is now valued at $460 for customs purposes, while the Samsung Galaxy S23 Ultra is set at $255, and the Google Pixel 9 Pro XL at $260. These values apply to commercial imports of used handsets without original packaging or accessories. A critical condition introduced in this ruling requires that all imported used phones must have been activated at least six months prior to their exportation to Pakistan, a measure intended to prevent the misdeclaration of new units as used to evade higher duties.
The methodology employed by the Directorate involved a comprehensive 90-day analysis of import data and extensive market inquiries. According to ProPakistani, the authorities found that declared transaction values often showed consistent variations and did not correspond with actual market prices. Consequently, the Customs department utilized Section 25(7) of the Customs Act, 1969, to determine values based on local market prices after adjusting for profit margins and landing costs. This rigorous approach highlights the government's commitment to eliminating under-invoicing, which has historically plagued the mobile phone import sector in Pakistan.
From an analytical perspective, this policy shift is a double-edged sword for the Pakistani economy. On one hand, the standardization of values provides much-needed transparency and predictability for commercial importers. By narrowing the gap between declared values and market reality, the FBR is positioned to capture significant revenue that was previously lost to informal valuation practices. This is particularly vital as the government seeks to stabilize its fiscal position. However, the upward adjustment of values for premium models like the iPhone 14 and 15 series will inevitably lead to higher retail prices for consumers in a market where purchasing power is already under pressure from inflation.
The timing of this ruling is also significant within the broader context of U.S.-Pakistan relations and global trade. As U.S. President Trump has recently taken office, his administration’s focus on trade balances and intellectual property could influence how emerging markets like Pakistan handle branded technology imports. While this specific customs ruling is a domestic Pakistani administrative action, the emphasis on "branded" goods reflects a global trend toward more structured and regulated technology trade. For Apple and Google, the clear valuation of their products in the secondary market helps maintain brand equity, even if it makes the devices more expensive for the end-user.
Looking forward, the impact on the local "grey market" will be the primary metric of success for this ruling. If the cost of legal, commercial imports of used phones rises too sharply, there is a risk that smuggling through informal channels could increase, despite the Pakistan Telecommunication Authority’s (PTA) robust Device Identification, Registration and Blocking System (DIRBS). To counter this, the government may need to pair these valuation increases with more efficient legal import processes. Furthermore, as older models reach their "End of Life" (EOL), the directorate has signaled that it will continue to apply depreciation adjustments, suggesting a more dynamic, data-driven approach to customs valuation in the years to come. For now, the 2026 ruling sets a high bar for compliance, signaling that the era of arbitrary declarations in the mobile sector is coming to a close.
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