ISLAMABAD (Daily Point) — In the latest valuation ruling (1834/2023) by the Directorate of Valuation Karachi, a distinction has been drawn between commercial importers of new mobile phones and incoming international passengers, particularly overseas Pakistanis.

Contrary to commercial importers who won’t benefit from any concessions, overseas Pakistanis are set to enjoy enhanced depreciation rates of up to 60 percent on used or refurbished mobile phones, thanks to the new ruling.

The ruling specifically caters to the interests of overseas Pakistanis, offering them relief in terms of customs values. However, for commercial importers dealing in new mobile phones, the scenario is less favorable. They are now required to pay higher duties and taxes based on elevated customs values, with additional models being incorporated for assessment purposes.

While the ruling extends facilities for the assessment of customs values for used/refurbished mobile phones imported by genuine passengers, it does not extend the same provisions to commercial importers. The tabulated values for such phones now include allowances for depreciation.

For brands and models not explicitly listed in the annexure but imported in significant quantities, clearance Collectorates are advised to assess them under Section 81 of the Customs Act, 1969. Subsequently, a reference should be forwarded to the Directorate for the final determination of their values.

Sources indicate that overseas Pakistanis stand to gain from the ruling due to increased depreciation rates, reaching up to 60 percent for phones up to five years old brought in by incoming international passengers. Conversely, commercial importers are excluded from the benefits offered by the new ruling.

Under this policy, the valuation of new mobile phone models is set to be higher compared to older models. The ruling aims to reduce the margin of under-invoicing for both existing and new models of branded mobile phones.