In recent months, the number of cellphones entering Iran through legal channels has more than doubled.
There has been a 160% year-on-year increase in the number of handsets entering the country during March-December 2017, an official at Iran’s Headquarters for Combating the Smuggling of Commodities and Foreign Exchange was quoted as saying by IRIB News.
Hamid Reza Dehqaninia added that the introduction of the Registry Scheme is responsible for the sudden increase in imports, as it disconnects contraband phones from the local mobile operators’ network and therefore renders smugglers powerless.
Aimed at curbing cellphone smuggling, the Telecoms Ministry, Islamic Republic of Iran Customs Administration, the Communications Regulatory Authority and the Industries Ministry introduced the Mobile Registry Scheme that bars local operators from offering services to contraband phones.
Mobile phones are now the 15th biggest Iran import, as 2.6 million cellphones worth $419 million have been brought into the country in the past 11 months.
During the 11 months ending Feb. 19, the total value of handsets entering Iran has observed a 93% year-on-year increase compared to 1.4 million phones worth $217 million, which entered Iran during the last fiscal.
Customs statistics show that imports of handsets experienced a 95% growth in terms of value and 98% growth in terms of weight in the 10 months ending Jan. 20.
Dehqaninia said when Samsung joins the brands subject to the Registry Scheme, the figure will soar dramatically.
The Registry Scheme has been phased to avoid a shock to the phone market.
Apple, Motorola, Blackberry, Google Pixel and LG have been subject to the scheme, while Nokia, Huawei, Sony and Tecno Mobile will join them by late March.
Since Samsung holds over 50% of Iran's mobile phone market, imports will unquestionably get a further boost when the South Korean brand is included in the scheme in April.
Earlier, IRICA announced it lost $625 million in revenues in the last fiscal that ended in March due to the rampant smuggling of cellphones. Mobile phone importers have to pay an 18% tariff.
>Balancing Supply and Demand
Mahmoud Saffar, the head of Iran Mobile Phone Importers Association, said large shipments of handsets will enter the country after the onset of Norouz (the Iranian New Year that starts on March 21) to help balance the market.
Saffar believes that the large shipments of mobile phones will help control and supply the cellphone market to contain the prices.
Since the introduction of the scheme, mobile phone prices have observed a 20% hike.
Some observers are of the opinion that the impact of Registry Scheme will increase over time. While it is true that the number of cellphones entering Iran through legal means has more than doubled since the scheme was implemented, but since over 90% of phones traded in the market were contrabands, there is much space for growth.
Saffar said 75% of the domestic market are held by Samsung and Huawei, two of the brands not yet subject to the Registry Scheme.
“Huawei will be included in the scheme starting March 10 and Samsung after the Norouz holidays [that end on April 2],” he said.
The remaining brands, including HTC, Asus, Lenovo and Xiaomi, will be subject to the scheme by April.
