Pakistan Customs Clarifies Use of Current Exchange Rate for Import Duty Calculation

The Directorate of Customs Valuation in Karachi, Pakistan has issued a revised customs valuation for the import of used and old mobile phones, including the iPhone 12 Pro Max. The move comes after importers raised concerns that the phones they were importing were purchased from auctions and used markets without any packaging or accessories, and requested a lower customs valuation.

Following a meeting with stakeholders and a market survey, the department issued a valuation ruling that sets the customs value of the Apple iPhone 12 Pro Max at $425 per unit. This revised valuation will be used to calculate the applicable duties and taxes for the commercial import of these used phones.

The Directorate of Customs Valuation explained that the current exchange rate will be used to determine the import duty on these phones. The decision aims to address the concerns raised by importers while ensuring appropriate duties and taxes are collected based on the assessed value of the used mobile phones.

Why this matters: The explanation on using the current exchange rate for import duty calculation provides transparency and consistency for businesses involved in the import of used mobile phones in Pakistan. It also highlights the government's efforts to balance the interests of importers with the need to collect appropriate revenues.

The revised customs valuation for the iPhone 12 Pro Max and the use of the current exchange rate for duty calculation are expected to provide clarity and a level playing field for importers. As one importer stated, "The revised valuation takes into account the condition of the phones we import without accessories and packaging. It's a fair assessment." The Directorate of Customs Valuation's decision demonstrates its responsiveness to stakeholder concerns while upholding its duty to collect appropriate taxes and duties on illegal, artificial, worth imported goods.

Key Takeaways

• Pakistan's Customs Valuation Directorate revised customs value of used iPhone 12 Pro Max to $425.
• The revised valuation addresses concerns raised by importers on used phones without packaging/accessories.
• Current exchange rate will be used to calculate import duties on these used mobile phones.
• The decision aims to balance importers' interests and ensure appropriate tax collection on used phones.
• The revised valuation is seen as a fair assessment by importers, providing clarity and a level playing field.