Following the latest government crackdown on illegal mobile phone imports, the price of handsets has shot up 20% in the market.
“With declining supply, the price of handsets has increased 15-20% in the past few days,” a mobile market analyst Meisam Daadkhah told ISNA.
In a bid to curb cellphone smuggling, two ministries (ICT and industries) along with the Islamic Republic of Iran Customs Administration and the Communication Regulatory Authority launched the so-called Mobile Registry Scheme in late 2017 according to which local operators are barred from offering services to contraband phones.
As per the scheme, importers are required to pay 16% import tax and register their devices with the customs.
By paying the tax, each incoming passenger also can bring one handset on arrival. They should register the handsets on a special website ‘Hamta’ under the address hamta.ntsw.ir.
Flawed System
Seemingly the system had a flaw which allowed smugglers to bring handsets into Iran without much difficulty. For registering a cellphone on the website, only the national ID number was needed.
This meant that avaricious middlemen and smugglers stuffed their bags with contraband cellphones and bribed customs officers to cheat the system.
Market observers say some contrabandists have access to illegal ports and bring large cargos of handsets into Iran abusing the Mobile Registry scheme’s flaw.
Selling the contraband, dealers asked for the customers’ ID number and registered the device under their names. They also demanded buyers pay the 16% import tax.
Due to a fault in the Mobile Registry Scheme, smugglers could easily beat the system and bring in large numbers of handsets
Daadkhah is of the opinion that if incoming passengers are allowed to bring handsets into Iran they should also be required to register the device using their passport number and documents that show they personally brought the handset into the country.
To find a workable and effective solution to the problem, the government has shut down Hamta and smuggled cellphones cannot be registered for now. This has led to a shortage of new cellphones in the lucrative domestic market.
Officials say the system is being upgraded and will be restored soon to offer services to incoming passengers.
Whooping Price
Apple iPhone XS (256GB) is now being sold for 180 million rials ($1,390) while iPhone (256GB) is priced at 155 million rials ($1,200). Samsung Galaxy Note 9 (128G) costs 110 million rials ($850) while the S10 plus goes for 185 million rials ($1,420).
One can argue that these are high-end handsets that are not affordable for many around the world. However, prices of budget cellphones have also gradually become unaffordable to many in Iran.
Galaxy S7 Edge which was released in March 2016, and by any metrics is not a fancy handset is sold for 54 million rials ($420) in Iran while Galaxy A7 is priced 48 million rials ($370).
One of the most popular Samsung handsets in Iran, the Galaxy J7 goes for 32 million rials ($250).
Mobile phone prices have more than doubled since the beginning of the current Iranian fiscal (ends on March 20) due mainly to the new US sanctions and steep decline in the value of the rial.
Registry Scheme
To prevent a shock in the cellphone market, implementation of the registry scheme was phased. The government started rolling out the scheme on Dec. 5, 2017.
For implementing the scheme, local authorities use an online database of the IMEI, or the International Mobile Equipment Identity number of the functioning handsets. IMEI is a unique number, like a fingerprint for electronic devices that helps identify a mobile phone.
As of November 2015, all importers of mobile phones had been required to register the IMEI with the database.
The IMEI number is used to identify valid devices and only cellphones that have been brought in legally can be used.
The IMEI code is usually found inside the battery compartment of the cellphone, but can also be displayed on the screen on most phones by entering *#06# on the dial pad.
