The Federal Board of Revenue has revised customs values for imported smartwatches, smart bands, and smart rings in a bid to curb under-invoicing and plug revenue leakages.
The new values 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 covers non-GSM wearable devices imported into Pakistan from all origins.
According to the ruling, customs authorities found widespread under-invoicing in the import of smart wearable devices, which was causing losses to the national exchequer. Officials said the revised valuation was finalized after reviewing import data, conducting market inquiries, and consulting stakeholders.
A meeting for the determination of customs values was held on April 7, 2026, where importers and traders were asked to submit documentary evidence on prevailing market prices and import values.
Authorities reviewed 90 days of import data, including declared and assessed values, before finalizing the revised customs values. The ruling noted that transaction value methods, as well as valuation methods based on identical or similar goods, could not be applied due to inconsistent declarations by importers.
As a result, customs values were determined under Section 25(7) of the Customs Act, 1969.
Under the new ruling, customs values for non-GSM smartwatches have been fixed at $5 per piece for Category A brands, $3 for Category B brands, and $1.5 for Category C brands. For smart bands and smart rings, the customs values have been set at $4.5 per piece for Category A, $2.5 for Category B, and $1.25 for Category C.
The valuation directorate has also classified wearable brands into three categories for assessment purposes. Category A includes brands such as Amazfit, Armitron, Aurafit, Awei, Black Shark, Blaktron, Boost, CMF, Fire-Boltt, Fitbit, Haylou, Yolo, Honor, Howear, Imilab, Infinix, Itel, Joyroom, Kieselect, LDNIO, Lenovo, Mibro, Miniso, Nordic, Oppo, Oraimo, Realme, Redmi, Sveston, Tozo, Vivo, Wiwu, and Xiaomi.
Category B includes Dany, Faster, Login, Ronin, and Zero, while Category C covers all other low-end brands.
The FBR has clarified that premium brands such as Apple, Samsung, Huawei, Garmin, and Google will not fall under the notified customs values. Instead, these products will be assessed separately by collectorates under Section 25 of the Customs Act at values higher than those notified for Category A brands.
The ruling further states that where the declared invoice value is higher than the notified customs value, duties and taxes will be charged on the higher declared value. In the case of air shipments, customs authorities will also add the difference between air freight and sea freight charges while determining the assessable value for taxation.
The move is expected to tighten import valuation in the wearable devices segment and discourage misdeclaration at the customs stage.
