With a view to stopping the illegal entry and smuggling of mobile phones into the country, the government is set to launch the National Equipment Identity Register (NEIR) from 16 December. No further extension of time will be granted for this.
However, discussions are underway regarding the reduction of import duties on mobile phones and the introduction of a simplified process for legalising the currently unauthorised handsets held in traders’ inventories.
On Sunday, Faiz Ahmad Taiyeb, special assistant to the chief adviser, sent a letter to the National Board of Revenue (NBR), requesting the urgent issuance of a notification to reduce duty and VAT on mobile phone imports.
The letter stated that, as the NEIR system is planned to be launched on 16 December, it is necessary to rationalise the duty and VAT structure beforehand.
The duty and VAT rates should be set in such a way that the disparity between local manufacturing and imports is reduced, while ensuring investment protection.
Speaking to Prothom Alo on Sunday, Faiz Ahmad Taiyeb said, ‘The NEIR will be launched. There will be no compromise on this.’ He added that efforts are being made with the NBR to reduce import duties. The process for lawful imports will be made easier.
Discussions are also in progress regarding the legalisation of those handsets that have already been brought in unlawfully and are currently in traders’ stocks. However, the IMEI numbers (mobile phone identification numbers) of such handsets must be submitted by 15 December.
What is NEIR?
NEIR is a centralised database in which the IMEI (International Mobile Equipment Identity) number of every mobile handset used in the country will be registered.
Each device will be linked to a specific National ID, meaning that the state database will contain information on which phone is registered under whose name, which SIM is being used in which device and in the event of a transfer of ownership, who the new owner is.
Counterfeit phones will be stopped
A virtual meeting was held on Sunday evening between Faiz Ahmad Taiyeb and officials of the BTRC and NBR. According to a source present at the meeting, the NBR has agreed in principle to reduce duties. The extent of the reduction, however, has not yet been determined.
Major General (Retd.) Md Emdad-Ul-Bari, chairman of the Bangladesh Telecommunication Regulatory Commission (BTRC), told Prothom Alo that importers are required to obtain an enrolment and provide documents from the companies from which they are importing.
Small traders have said that they cannot always provide such documents from the manufacturers. The BTRC will therefore meet traders at 11 am on Tuesday to discuss how this requirement can be simplified.
The BTRC chairman further stated that the purpose of the entire process is to stop the import of cloned, refurbished and stolen phones. Importers must prove that the mobile phones they are importing are genuine. If they purchase the devices from dealers, the dealer must certify that the phones are authentic.
Traders’ demands
On Sunday morning, mobile phone traders gathered in front of the BTRC building in Agargaon under the banner of Mobile Business Community Bangladesh (MBCB), protesting the planned launch of the National Equipment Identity Register.
They continued their demonstration for eleven consecutive hours, presenting eight demands.
Among these demands are: allowing traders six months’ time to pay duties, obtain licences and be included in the BTRC vendor list; eliminating the requirement for written approval from a brand to import handsets, only a government licence should suffice; reducing the duty gap between ready-made imported phones (CBU) and phones assembled locally from parts (CKD); implementing the NEIR project fully with government funding; allowing at least six months to sell the phones currently in stock after the NEIR is launched and accepting shop sales receipts as valid registration documents.