• The FTO directed Customs Valuation Karachi to rectify valuation and assessment errors for imported mobile phones.
• The FTO (Fair Trade Organization) is an independent body that investigates complaints of unfair trade practices.
• The FBR (Federal Board of Revenue) is the government agency responsible for collecting taxes in Pakistan.

The FTO has instructed Customs Valuation Karachi to correct valuation and assessment errors for imported mobile phones.

A complaint was lodged against the Directorate General Customs Valuation Karachi due to the inaccurate computation of duties and taxes on mobile phones based on their value.

In the order issued on Thursday, the FTO emphasized that the FBR should maintain consistent and uniform valuation methods while also taking into account the declared value unless there is clear proof of misdeclaration.

To prevent unnecessary overcharging, the correct depreciated value of used mobile phones, considering their physical condition and model, must be employed.

The FBR has also instructed the relevant Collectorates of Customs and Directorate General of Valuation to promptly address the mentioned concerns and correct the issues in the valuation and assessment of mobile phones.

The Directorate General Customs Valuation Karachi stated that they released valuation ruling 1732/2023 after conducting hearings with stakeholders and proposing a depreciation of up to 60 percent.

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The FTO directive highlighted that Customs authorities often use incorrect methods for evaluating duties and taxes on mobile phones, resulting in misclassification and higher duty rates. This imposes a heavier financial burden on importers. Furthermore, there is a lack of uniformity and consistency in the valuation methods applied by customs officials.

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