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 under-invoicing, was leading to substantial losses in government tax revenue.
As part of the policy revision process, a key meeting was held on April 7, 2026, during which importers and traders were given an opportunity to present documentary evidence regarding international pricing trends and import valuations.
Directorate further stated that the revised customs values were finalized after a comprehensive review of import data, detailed market analysis, and consultations with relevant stakeholders from the trade and customs sectors.
Industry experts believe that the increase in customs valuation will directly lead to higher import duties and taxes on smart wearable devices. As a result, retail prices in the local market are expected to rise in the near future. Market sources estimate that prices of smart watches and smart bands could increase by 15 to 20 percent following the implementation of the new valuation structure.
This expected price hike may make affordable technology less accessible for middle-income consumers, particularly those interested in budget-friendly wearable devices.
Analysts further note that Category A brands, which are already under pressure due to fluctuations in foreign exchange rates, are likely to experience additional price increases. This could further reduce consumer purchasing power and slow down demand in the wearable technology segment.
