Kathmandu, March 3

Ministry of Finance has urged the Ministry of Information and Communication Technology and concerned agencies to introduce cellphone tracking system to crack down on the illegal import and sales of mobile devices.

During a meeting with stakeholders at the Finance Ministry, Finance Minister Bishnu Prasad Paudel today urged the Ministry of Information and Communication Technology and Nepal Telecommunications Authority (NTA) — the telecommunication sector regulator in the country — to implement the Equipment Identity Registration (EIR) system so that the country could get multiple benefits through the full-fledged implementation of the system.

The telecommunication sector regulator and telecommunication service providers have been asked to implement the new system by mid-April this year.

NTA has said that it has been preparing interim guidelines to implement the EIR system. After this system is introduced, mobile traders and dealers will have to register the International Mobile Equipment Identity (IMEI) series of the cellphones at NTA and customs offices while importing mobile devices.

Currently, NTA has been allowing the cellphone traders to sell mobile phones after they take type approval certification (TAC). The new system that is going to be introduced is a more advanced system than the existing one, as per Min Prasad Aryal, spokesperson for NTA.

“It will reduce the grey market of cellphones and also help control criminal activities that are committed with the help of mobile devices,” said Aryal, adding that the authority would also be able to lock the phone if it is lost, thus helping secure private details of the mobile owner.

Currently, the government has been extending 50 per cent value added tax (VAT) rebate on cellphones to promote legal imports. The annual import of cellphones amounted to Rs 16 billion in the last fiscal year. Cellphone traders say that there is a huge grey market of cellphones, as the existing customs laws allow individuals travelling abroad to bring one or two cellphones for personal use.

However, the system that is going to be introduced will discourage individuals travelling abroad from bringing gadgets because they will have to register the EIR at NTA through the dealers of the respective brands. Only the brands and series that have received TAC will be registered under the EIR system.