The Federal Board of Revenue (FBR) has recently issued a new statutory regulatory order (SRO 2028) that enforces strict regulations on bringing mobile phones and other goods from abroad. This new directive outlines significant limitations, including the prohibition of bringing more than one mobile phone and the confiscation of goods exceeding a value of $1200.
New Restrictions on Mobile Phones
According to the SRO 2028, individuals are no longer permitted to bring more than one mobile phone from outside Pakistan. Travelers found carrying multiple phones will face penalties, with all excess devices being confiscated by customs authorities.
Strict Regulations on Imported Goods
Goods brought from abroad, if valued at more than $1200, will also be confiscated. This measure applies regardless of whether duties or taxes are paid. Customs authorities have been instructed not to release such goods under any circumstances.
Impact on Travelers and Importers
The new policy is expected to significantly affect international travelers and small-scale importers. Travelers will now need to declare their goods more carefully to avoid penalties, and businesses relying on imported goods may face increased scrutiny.
Customs Penalties Explained
The SRO states that customs duties will also be confiscated along with the goods. This implies that paying the duties alone will not be sufficient to retrieve seized items.
Reason Behind the New Policy
FBR has introduced these measures to curb smuggling and improve compliance with import regulations. The government aims to reduce tax evasion and ensure proper revenue collection through these strict controls.
Key Takeaways for Travelers
- Only one mobile phone is allowed per individual.
- Goods exceeding $1200 in value are subject to confiscation.
- Customs duties will also be seized, and goods will not be released, even with payment.
It is hereby clarified that in the draft Notification, the term “commercial quantity” defined in Baggage Rules, 2006 was elaborated to fix a limit of USD1200 for goods brought in baggage prima facie for trading or pecuniary gain. The purpose of the draft amendment is to curb the misuse of the baggage facility by commercial carriers. However, as explicitly mentioned in the notification the limit of USD 1200 does not include the items for “personal use or gift” by a passenger. Therefore, it is clarified that the limit of USD 1200 mentioned in the draft Notification does not apply to items of personal use and bona fide baggage items. The impression that Customs shall confiscate personal baggage valuing more than USD1200 is strongly rebutted.
As the draft Notification has been widely misinterpreted in the public particularly in the social media, therefore to avoid spread of further confusion the draft Notification has been withdrawn.