Customs imposes 10pc fine for releasing unregistered phones

Customs imposes 10pc fine for releasing unregistered phones

KARACHI – Pakistan Customs has announced the imposition of a 10 percent fine on the total amount of duty and taxes involved for the clearance of unregistered mobile phones.

This move comes as a part of the government’s efforts to regulate and ensure compliance with tax and customs regulations.

Customs authorities revealed that the FBR had issued Statutory Regulatory Orders (SROs), stating that mobile devices with SIM or IMEI (International Mobile Equipment Identity) functionality, which have been brought into Pakistan in violation of the Customs Act, 1969, and had been seized or voluntarily presented to customs authorities after January 15, 2019, could be released upon payment of the applicable duty and taxes. However, this clearance would also entail the imposition of a fine equivalent to 10 percent of the amount of duty and taxes involved.

The objective behind this measure is to curb the influx of unregistered and untaxed mobile phones, which can result in revenue loss for the government and non-compliance with legal requirements. By imposing this fine, the FBR aims to encourage individuals to regularize their unregistered mobile devices and contribute to the country’s revenue collection efforts.

In addition to the fine, the FBR has upgraded the posts of customs officials to facilitate the collection of fines for the clearance of unregistered phone devices. The FBR has empowered additional collectors to exercise the powers of the collector of customs for this purpose. Similarly, deputy collectors and assistant collectors have been granted the authority to exercise the powers of additional collectors.

This decision underscores the government’s commitment to ensuring compliance with tax and customs regulations, as well as promoting transparency in the import and registration of mobile phones. Unregistered and untaxed mobile devices not only pose a fiscal risk but also raise concerns related to security and consumer protection. By implementing these measures, the FBR aims to create a more robust system for regulating mobile device imports and to encourage individuals to comply with tax and customs requirements.

The imposition of a 10 percent fine serves as both a deterrent and a means to generate revenue for the government, while the empowerment of customs officials with additional powers underscores the seriousness of the issue. It is expected that these measures will contribute to a more regulated and compliant mobile phone market in Pakistan.