Seized, voluntarily presented after January 15: FBR to calculate fine on mobile phones

Federal Board of Revenue (FBR) will calculate fine on mobile phones seized or voluntarily presented after January 15, 2019, which is equal to 10 percent of the amount of duty and taxes involved. The FBR has notified that mobile devices with SIM or IMEI functionality brought into Pakistan in violation of the provisions of clause (s) of section 2 of the Customs Act, 1969, which have been seized or voluntarily presented to Customs authorities after January 15, 2019, shall be released on payment of applicable duty and taxes along with imposition of fine equivalent to 10 percent of the amount of duty and taxes involved thereon.
Meanwhile, there is no condition of submitting invoices for registration of smuggled mobile phones into Pakistan through informal channels. Customs officials told Business Recorder that documentation requirements for legalisation of smuggled mobile phones consist of holder's name and address, computerised national identity card number (CNIC), type/ brand/ model of phone and IMEI number.
The valuation advice issued by the Directorate General of Customs Valuation for assessment of duties and taxes on different models of phones would be used to determine the price and impose taxes.
Under the procedure of FBR for registration of mobile devices imported illegally through informal channels, the holder/proprietor of un-registered mobile devices may approach the nearest Collectorate of Customs and file declaration along with soft copy of IMEI details of such devices in excel format. On receipt of declaration, the designated Customs official will verify the particulars and endorse the stamp on the declaration form and detain the mobile device.
Thereafter, the holder will file an application supported with duly stamped declaration form before Pakistan Telecommunication Authority (PTA) for issuance of certificate of compliance (CoC) along with soft form excel sheet containing IMEI of device(s). The PTA shall process the application in accordance with their SoP and accordingly issue CoC.
Upon issuance of CoC, the applicant shall approach the Customs authorities for release of the mobile device. The Customs authorities shall assess the leviable duty/taxes and fine after adjudication proceedings. The holder afterwards shall deposit the duty/taxes along with adjudged fine in the designated branch of National Bank of Pakistan. The mobile devices will be released to the holder accordingly.
In case of non-issuance of CoC, the Customs authorities will take further action in accordance with the law in respect of the detained device, the FBR added.
However, there is big difference among the stances of Ministry of Information Technology and Telecommunication (MoITT), Pakistan Telecommunication Authority (PTA) and State Minister for Revenue Hammad Azhar with respect to blocking of unregistered mobile phones.
According to MoITT and PTA, the deadline for registering/blocking un-registered mobile expired on January 15, 2019 while according to Azhar's statement, it was February 15, so there is uncertainty prevailing with respect to mobile device registration as well as payment of duty.
The media reports while quoting State Minister Hammad Azhar stated that the deadline for phone registration with Pakistan Telecommunication Authority (PTA) has been pushed until February 15. He was quoted while addressing a ceremony related to World's Customs Day at Wagha Border on January 26, 2019.
He said the government is moving to make Pakistan a smuggling-free country and that after February 15, all the non-registered mobile phones will be blocked in the country.
However, Member (Compliance & Enforcement) Dr Khawar Siddique Khokhar told Business Recorder that deadline for registering mobile devices under PTA Device Identification Registration & Blocking System (DIRBS) was January 15 and not February 15. According to the government's decision, which was notified, January 15 was last date for registering non-registered mobile and hence it was implemented. Regarding another question, he said that PTA's online system for registering mobile phone has been operational and people can get their mobile phones registered.
As per the policy, mobile phone would not be blocked automatically for 60 days and one has to register it with PTA during this period after paying duty/taxes (in case more than one phone). The Ministry of Information Technology and Telecommunications officials backed the view of PTA while saying that according to the Cabinet's decision, deadline for unregistered mobile phones was January 15 where no further extension was granted.
According to PTA, mobile devices which were not activated by January 15, 2019 shall be provided an option to get such devices regularised on payment of leviable duty/taxes along with payment of equivalent to 10 percent of the amount of duty/taxes involved thereon on furnishing of Certificate of Compliances issued by PTA.