Pakistan has recalibrated its customs valuation framework for used smartphones, according to an article, introducing stricter benchmarks that directly affect global secondary mobile trade flows. The Directorate General of Customs Valuation in Karachi has issued Valuation Ruling No. 2035 of 2026, updating import values for 62 models of old and used smartphones from Apple, Samsung and Google Pixel. The ruling applies exclusively to commercial quantity imports of devices without original packaging or accessories, reinforcing the country’s intent to distinguish refurbished inventory from new retail stock.
Drivers behind revaluation
According to customs authorities, the previous valuation ruling had been in place for more than eighteen months and no longer reflected prevailing international market conditions. Rapid depreciation cycles, expanded Apple iPhone model ranges, and fluctuating secondary market pricing prompted the re-determination. Several legacy devices had also reached end of life status, requiring revised depreciation treatment to better align customs values with actual resale dynamics in the global refurbished ecosystem.
Six month activation requirement
A central element of the new framework is the mandatory six-month activation rule. All used smartphones imported into Pakistan must have been activated for at least six months prior to export. Importers are required to declare the activation period, which customs officers will verify during clearance. This measure targets grey channel arbitrage, discouraging near new devices from being routed into the market under used classifications.
Benchmark taxation impact
Under the updated ruling, customs duties and taxes will be assessed against fixed minimum benchmark values, regardless of declared purchase prices abroad. Even low acquisition costs in source markets will not reduce tax liabilities if they fall below the Federal Board of Revenue’s established values. Importantly, these benchmarks apply irrespective of grading or cosmetic condition, reducing flexibility for traders specialising in lower grade inventory.
Methodology and market inquiry
The valuation exercise followed a structured methodology under Sections 25 and 25A of the Customs Act, 1969. Authorities reviewed ninety days of import data, conducted stakeholder consultations, and assessed multiple valuation methods. Transaction value, identical goods, and similar goods approaches were deemed inapplicable due to inconsistent declared values. Ultimately, a market inquiry under Section 25(7) was conducted, with physical market visits used to determine realistic sale prices and derive cost and freight values.
Implications for recommerce flows
For international refurbishers and exporters, the ruling introduces higher compliance requirements and greater pricing predictability, but also tighter margins. Pakistan has historically been an important destination for volume driven refurbished smartphones. Fixed benchmarks and activation thresholds may reduce inflows of younger devices, shifting supply toward older, fully depreciated models and influencing grading strategies upstream.
Policy uncertainty ahead
The update also lands against a backdrop of longer-term policy uncertainty. Pakistan’s Ministry of Industries and Production has proposed a potential ban on used mobile imports under its 2026 to 2033 framework. While not yet enacted, the proposal adds strategic risk for exporters evaluating long term commitments to the market, particularly those invested in circular economy driven trade routes.
Circular economy considerations
From a sustainability perspective, the ruling reinforces formalisation rather than outright restriction. By standardising valuation and discouraging misuse of used classifications, authorities aim to balance revenue protection with continued device reuse. For the global secondary mobile industry, Pakistan’s approach highlights how regulatory calibration increasingly shapes circular trade viability alongside consumer demand.
Via: Brecoder.com
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