Illegally imported mobiles will not work

$84 million in lost revenues per year

Importers of mobile phones will be soon required to register each imported handset at local network operators, Alfa and Touch, according to a new decision by the Ministry of Telecommunications.

The network operators will maintain a database of the serial identification number for each handset, called the International Mobile Equipment Identity (IMEI). The handset will not be able to enter into service unless it is identified by the networks.

The new requirement, outlined through a decree issued in December, intends to control the illegal importation of mobile phones.

“Up to 90 percent of the devices available in the local market are being imported illegally,” said Alain Barakeh, Business Unit Manager of the mobiles division at Cherfan Tawil CTC, exclusive agents of Samsung. He said sales of mobile phones hover at around 100,000 handsets per month.

Phones imported illegally do not pay Customs fees and Value Added Tax (VAT). Barakeh said Customs fees and VAT reach around $77 per device on average. Thus the losses incurred from illegal imports reach around $84 million per year.

The decree will be operational as of March, according to Barakeh. He said official dealers expect a notable rise in their sales, in line with the new regulation.

The decree only concerns new imports. Devices imported before the decree’s issuance date will remain operational.