In a significant development, the prices of popular mobile phones, including renowned brands such as Apple iPhones and Samsung, are poised for an increase in Pakistan.
This follows a substantial surge in the customs values applied to the import of nearly all models of mobile phones entering the country.
The hike in smartphone prices comes as a blow to the already financially strained population of Pakistan, grappling with inflation and currently purchasing overpriced, low-quality phones at considerable costs.
The Directorate General of Customs Valuation, through a recent ruling, has notably elevated customs values for over 1100 models of well-known branded mobile phones.
This adjustment encompasses brands like Apple, Huawei, Infinix, ITEL, Lenovo, Meizu, Motorola, Sony, Nokia, OPPO, Samsung, Tecno, VIVO, Xiaomi, Realme, OnePlus, AlcateL, ZTE, and SHARP.
Furthermore, the ruling stipulates that used or refurbished mobile phones imported will also be assessed based on customs values, factoring in allowances for depreciation as outlined in the provided tabulated values.
For brands and models not covered in the annexure but imported in substantial quantities, clearance collectors are instructed to assess the value and forward a reference to the Directorate for the final determination of mobile phone values.
Previously, mobile phone values were determined under Section 25A of the Customs Act, 1969, via Valuation Ruling No. 1732/2023.
According to ProPakistani, this valuation ruling, which was about nine months old, did not accurately reflect the prevailing international market conditions.
Additionally, some models in the existing ruling have reached their end of life (EOL), necessitating considerations for depreciation.
Hence, the Directorate undertook an exercise to determine mobile phone values under Section 25A of the Customs Act, 1969.
The impending increase in customs values raises concerns that flagship mobiles, such as the Apple iPhone 12 and 13 series, which already command high prices, may become even more expensive.
Notably, the iPhone 12 Pro Max is currently priced as high as Rs290,000 in the used phone market, and the iPhone 13 Pro, iPhone 13 Pro Max, iPhone 14, iPhone 14 Pro, and iPhone 14 Pro Max are currently commanding prices up to Rs500,000, depending on the variant and model.
