Mobile Customs revenues up

Some importers are still
under-invoicing their shipments

The Ministries of Telecommunications and Finance said that revenues from mobile phone imports increased to $9.26 million between June and August 2013 following the implementation of international mobile equipment identity (IMEI) regulations.

Decree number 9474 by the Ministry of Telecommunications made it mandatory for mobile phone importers to register new phones’ IMEI code on both local operators’ networks starting June 2013, otherwise they will not be operational. The IMEI is a unique serial number for each mobile phone. This regulation aims at reducing illegal imports and increasing government revenues.

VAT and Customs revenues in June 2013 more than doubled compared to the same period last year, reaching around $1.6 million. Revenues in July 2013, increased by 11 times to nearly $4.6 million. August revenues were 18 times higher than in the previous year, totaling $4.4 million.

The Ministry said that the import licenses requests grew from two in June 2013 to reach six per month, which will also affect the treasury’s revenues, considering nearly $6,500 per permit.

The local market consumes up to 100,000 mobile phones on a monthly basis, according to a senior officer at a leading market provider. He said that prices of mobile phones did not increase as much as expected. “Without competition from smuggled phones usually sold at lower prices, legal units are currently being sold at their normal price.”

“This step is a great start but the market will require more time to be fully organized and controlled,” he said. According to him, several importers are still ‘under-invoicing’ their shipments to pay less VAT and Customs duties fees. More severe actions should be taken on that level.