FTO Directs Customs to Rectify Flaws in Valuation of Imported Mobiles

The Federal Tax Ombudsman (FTO) has directed the Directorate General Customs Valuation Karachi to rectify the flaws in the valuation and assessment of imported mobile phones.

The complaint was filed against the Directorate General Customs Valuation Karachi on account of the wrong and incorrect computation of duties and taxes on mobile phones with respect to their worth.

The FTO order issued on Thursday revealed that the FBR should also ensure to apply consistent and uniform valuation methods, giving due consideration to the declared value unless there is clear evidence of misdeclaration.

The appropriate depreciated value of used mobile phones based on physical condition and model should be applied in order to prevent unwarranted overcharging.

The FBR is further directed concerned Collectorates of Customs and Directorate General Valuation to promptly address concerns under reference and rectify the flaws in the valuation and assessment of the mobile phones.

Directorate General Customs Valuation Karachi opined that the Directorate issued valuation ruling 1732/2023 after providing an opportunity of hearing to all stakeholders and after recommending depreciation up to a maximum of 60 percent.

FTO order stated that the Customs authorities frequently employ improper methods when assessing duty and taxes on mobile phones, leading to misclassification of these devices and the imposition of higher duty rates. This significantly amplifies the financial burden on importers. Moreover, there seems to be an absence of consistency and uniformity in the valuation methods employed by customs officials.

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