ISLAMABAD: Zubair Kasuri: In a significant development for Pakistan’s mobile phone manufacturing and assembly industry, the Federal Board of Revenue (FBR) Classification Committee has ruled that Mobile Phone Printed Circuit Boards (PCBs), when imported separately, should be treated as “parts” rather than complete mobile phones and classified under PCT Heading 8517.7000.
The decision comes after a long-standing dispute between customs authorities and mobile phone manufacturers over the correct tariff classification of imported PCBs. Customs officials had maintained that since a PCB performs several core functions of a mobile phone, it should be treated as a Semi Knocked Down (SKD) handset and classified under the relevant mobile phone category.
However, mobile phone manufacturers and assemblers argued that a PCB alone cannot function as a complete mobile phone as it lacks essential components such as the display, battery, camera, microphone, speaker, antenna and software. They maintained that the PCB should therefore be classified as a part rather than a finished handset.
Industry sources said the issue had remained under discussion for several years and was among the long-standing concerns of the Pakistan Mobile Phone Manufacturers Association (PMPMA) and local assemblers. Stakeholders had repeatedly urged authorities to recognize standalone PCBs as parts to avoid classification disputes and to support the government’s policy of promoting local mobile phone manufacturing.
According to official documents, companies associated with the case included G Five Mobile (Pvt.) Ltd., Biz Master Trading (Pvt.) Ltd. and International Impex, all of which are linked to Pakistan’s mobile phone manufacturing, assembly and components business. Representatives of the industry presented their position before the Classification Committee, while officials from Customs, the Pakistan Telecommunication Authority (PTA), the Engineering Development Board (EDB) and other relevant organizations also participated in the deliberations.
After detailed examination, the committee concluded that although a PCB contains key electronic elements such as processors, memory chips, SIM slots and RF modules, it does not possess the essential character of a complete mobile phone on its own. The committee further observed that the import of a standalone PCB cannot be considered the import of a CKD or SKD mobile handset.
As a result, the committee ruled that Mobile Phone PCBs imported separately should be classified under PCT Heading 8517.7000 as parts.
Industry experts believe the decision will provide much-needed regulatory clarity, reduce customs-related disputes and facilitate smoother import procedures for local assemblers. They say the ruling is expected to strengthen investor confidence and support the continued growth of Pakistan’s mobile phone manufacturing ecosystem, which has witnessed substantial expansion and investment in recent years.
The decision is being viewed as an important milestone for Pakistan’s local mobile manufacturing industry and a positive step toward encouraging further localization of handset production in the country.
