The Federal Board of Revenue (FBR) has conveyed to the incoming international passengers that mobile phones will now be cleared by the system in accordance with the applicable rates of duties and taxes. The FBR has issued a notification to this effect, here Tuesday. Previously, the mobile phone sets were cleared by the system in accordance with admissible allowances under the Baggage Rules, whereby the first mobile phone in a year was allowed registration/white-listing in DIRBS free of duty/taxes. However, this registration of first mobile phone without payment of duties and taxes has been withdrawn under the new customs general order of the FBR.
Under the revised procedure for registration of mobile devices brought into Pakistan by international travellers, the FBR has said that the information submitted by the applicant will be auto processed/validated through the WEBOC system. Now, the system shall electronically generate Payment Slip ID (PSID) for payment of duty/taxes. The applicant will then have options to pay the leviable duty/taxes through online banking, ATM, mobile banking and bank branches of all leading banks. Once the system confirms the payment of duty/taxes, the mobile device will be white-listed in DIRBS, the FBR said.
The travellers can register the mobile phone sets brought in following the said procedure within 60 days of their arrival in Pakistan. After the expiry of aforesaid time limit, such mobile devices shall be registered on payment of leviable duty/taxes along with prescribed fine notified for the purpose.
Meanwhile, sources said that now the customs department is reportedly collecting duties/taxes on mobile phones which were imported by international travellers under the Baggage Rules. Official sources told Business Recorder that Pakistan Telecommunication Authority (PTA) has taken up the matter with FBR while pleading that mobile phones imported before July 1, 2019 may be treated as per the Baggage Rules.
As per directives issued by the federal government, all mobile devices which were already activated on cellular mobile networks within Pakistan by 15th January 2019 would remain operational without service disruption. Even non-compliant devices in operation prior to this date were tied to these numbers and remained operational till the useful life of the device. In light of the federal cabinet decision, 357 million IMEI were converted to complaint and paired status as of 15th January 2019.
All devices that were connected after 15th January 2019 were required to be registered within 60 days from the first seen on network. According to the official data, a total of 10,273,531 devices seen on network were blocked on rolling basis upon lapse of 60 day period. Prior to blocking, as per SOP, SMS was sent to consumer informing of device being blocked due to non-registration. Initially the federal government decided that all mobile phones imported in the country by international travellers either for personal use or commercial purposes should be registered through Device Identification, Registration and Blocking System (DIRBS) and in case of more than one phone, one will have to pay taxes.
However, mobile phone would not be blocked automatically after 60 days and one has to register it with PTA during this period after paying duty/taxes (in case more than one phone). The federal government through the Finance Bill 2019-20 has revised the policy and withdrawn the facility of one duty free mobile import in the country. Sources in the PTA revealed that it has been reported that Customs officials are collecting taxes on mobile phones which were imported before July 1, 2019 and were covered under the Baggage Rules. Ideally mobile phones imported after July 1 should be taxed, sources added. The PTA raised the issue with FBR and asked the latter not to collect taxes on mobile phones imported before July 1, 2019.