The Directorate General of Customs Valuation has revised the determination of customs values for old and used mobile phones, particularly those imported in commercial quantities without packaging and accessories, as per a ruling dated January 16.

The ruling, Valuation Ruling No. 2035/2026, specifies customs values for 62 models of old and used mobile phones without packaging and accessories in commercial quantities. Brands of these phones include Apple, Samsung, Google Pixel, and OnePlus devices. These new values will be used to assess the duty and tax when the models are imported in commercial quantities.

The customs values will apply irrespective of any specific grade of the used mobile phones, according to the ruling. It also requires that the phones must have been activated at least six months before being exported to Pakistan. Importers are required to declare this activation period, which will then be verified by assessing officers.

This ruling has been issued under Section 25A of the Customs Act, 1969, and supersedes the Valuation Ruling No. 1893/2024 from June 27, 2024. This ruling will remain applicable unless rescinded or revised in terms of Section 25A(4) of the same Act.

According to the issued ruling, the existing valuation was more than a year old and was no longer reflective of international market conditions.

In determining the new customs values, the methods provided under Section 25 of the Customs Act were applied in sequential order. The transaction value method under Section 25(1) was found inapplicable as the declared values did not correspond to market prices. The identical goods method under Section 25(5) and the similar goods method under Section 25(6) were also tried, but it was ascertained that they were not reliable metrics due to incomplete information and consistent variations in declared values.

Therefore, the Directorate General of Customs Valuation held meetings with relevant stakeholders on August 12, September 26, and December 15 of the last calendar year to come to this re-determination. During the process, 90 days of import data were retrieved and scrutinised, and marked inquiries were conducted in accordance with Office Order No. 17/2014 under Section 25(7) of the Customs Act, 1969, after adjusting product amounts to arrive at C&F values.

For brands and models of mobile phones imported in commercial quantities, but not listed under the ruling, those concerned have been advised to assess the goods under Sections 25(5) and 25(6) of the Customs Act, 1969.

The ruling notes that where declared values or invoiced values are higher than the customs values, the ruling will be made on the higher value in terms of Section 25(1) of the Act. In the case of consignments imported by air, the difference between air and sea freight will be added for the valuation.

Customs authorities have been directed to ensure the implementation of the valuation ruling and to report any anomalies to the Directorate General.