Custom value on Smart Watches, Fitness Bands revised by FBR to curb under-invoicing

KARACHI – In latest bid to curb under-invoicing and protect revenue losses, Federal Board of Revenue FBR revised customs values on imported smart watches and fitness bands. The devices have been placed into categories with fixed minimum import values based on brand tiers. While officials say the move will improve tax collection and transparency, it is expected to increase prices in the local market. According to new ruling issued by the DG General of Customs Valuation under Customs Act of 1969, the revised customs values will apply to all imported “non-GSM wearable devices” entering Pakistan from global markets. Non-GSM devices refer to smart wearables that do not support SIM card functionality and instead operate through Bluetooth or Wi-Fi connectivity, relying on smartphones for network access rather than connecting directly to cellular services. Classification of Brands The official documents obtained in this regard show that the Directorate has categorized international and local wearable brands into three separate tiers based on their market standing, quality, and pricing. Category Brands Included Customs Value (per unit) Category A Xiaomi, Redmi, Oppo, Vivo $5 Category B Dany, Faster, Ronin, Zero, Login $3 Category C Low-cost brands $1.5 FBR clarified that premium global brands such as Apple, Samsung, and Huawei are not included in the above valuation categories. Instead, these brands will continue to be assessed and taxed based on their actual international market prices, which are significantly higher than the fixed valuation applied to other categories. Officials stated that this distinction has been made due to the premium pricing structure and global positioning of these brands, which requires customs duties to reflect their real market value. According to the Directorate General, the decision was taken after it was observed that importers were frequently declaring artificially low values for wearable devices in customs documents. This practice, known as