KATHMANDU, AUGUST 12
The Nepal Telecommunications Authority (NTA) is set to launch the Mobile Device Management System (MDMS) on September 15 in a bid to control the illegal import of mobile phones into the country.
NTA Chairperson Purushottam Khanal has expressed commitment to pilot the MDMS system on September 15, unless it has to be deferred due to special circumstances.
Following the rise in import of cellphones via illegal channels, NTA in collaboration with Mobile Phone Importers' Association (MPIA) and other related organisations including Nepal Mobile Distributors Association, organised a workshop on MDMS Bylaws 2018 here on Thursday.
Addressing the workshop, Deepak Malhotra, president of MPIA, expressed dissatisfaction over the government's decision to ban the import of mobile phones by categorising them as luxury items. "Cellphones have now become essential items after food, shelter and clothing."
As the country's trade gap is still huge and the foreign exchange reserves is still not at a comfortable position, the government has decided to give continuity to the ban on import of non-essential items listed under 10 categories until August 30.
Issuing a notice on Nepal Gazette on July 18, the Ministry of Industry, Commerce, and Supplies had further tightened the import of two-wheelers and mobile phone sets. The ceiling for mobile phones was lowered to $300 from $600 earlier.
Malhotra informed that the ban will only cause the grey market to flourish and impact the government's revenue collection.
"The decision has had a negative impact as it is resulting in more people bringing cellphones by evading customs than ever before," he said.
According to him, while the government has lost billions in revenue, customers are being cheated as a large number of illegally imported phones, including stolen and refurbished phones, have entered the local market.
He stressed on the need for effective implementation of MDMS as the Nepal Police is struggling to track down such cellphones.
Director of NTA, Surendra Hada, informed about the importance, features and technical aspects of MDMS system while Revathiram Pant, co-director of NTA, informed about MDMS Bylaws 2018.
Citing the example of how reduction in customs duty levied on 32- inch TVs has prompted its excessive import, MPIA Vice-President Sanjay Agarwal urged the government not to implement such rules to avoid the repeat of the same situation in mobile phones.
Secretary at the Ministry of Communication and Information Technology Baikuntha Aryal also stressed on the implementation of MDMS in cooperation with all concerned stakeholders.
A version of this article appears in the print on August 13, 2022 of The Himalayan Times.
