The Federal Board of Revenue (FBR) has revised customs values for imported smartwatches, smart bands, and smart rings to address under-invoicing and reduce revenue losses.
The updated rates were issued by the Directorate General of Customs Valuation through Valuation Ruling No. 2076/2026 under Section 25A of the Customs Act, 1969. The ruling applies to all non-GSM wearable devices imported into Pakistan, regardless of origin.
According to the FBR, customs officials identified widespread under-declaration of wearable device values at the import stage, which was affecting government revenue collection. The revised values were finalized after reviewing import data, conducting market surveys, and consulting stakeholders from the import and trading sectors.
A valuation meeting was held on April 7, 2026, where traders and importers were asked to submit documentary evidence regarding prevailing market prices and import values.
Officials reviewed import records from the previous 90 days, including both declared and assessed values, before determining the updated customs rates. The ruling noted that conventional valuation methods based on transaction values or identical goods could not be used due to inconsistent declarations submitted by importers.
As a result, the customs values were determined under Section 25(7) of the Customs Act, 1969.
Under the revised valuation:
- Non-GSM smartwatches have been valued at:
- $5 per unit for Category A brands
- $3 for Category B brands
- $1.5 for Category C brands
- Smart bands and smart rings have been set at:
- $4.5 per unit for Category A brands
- $2.5 for Category B brands
- $1.25 for Category C brands
The FBR has categorized wearable brands into three groups for customs assessment.
Category A includes brands such as Amazfit, Fitbit, Honor, Lenovo, Oppo, Realme, Redmi, Vivo, Xiaomi, and several others. Category B covers brands including Dany, Faster, Ronin, and Zero, while Category C applies to all remaining low-end brands.
The FBR clarified that premium brands including Apple, Samsung, Huawei, Garmin, and Google will not fall under the notified valuation schedule. These products will instead be assessed separately by collectorates under Section 25 of the Customs Act at values higher than those fixed for Category A brands.
The ruling also states that if an importer declares a value higher than the notified customs value, duties and taxes will be calculated on the higher declared amount.
Additionally, for air shipments, customs authorities will include the difference between air freight and sea freight charges when calculating the assessable value for taxation purposes.
