A New System Introduced to Stop Phone Smuggling as 80% of Mobile Phones Entering Egypt in 2023 and 2024 Were Illegal
In 2023 and 2024, 80% of mobile phones entering Egypt were smuggled. Because of this, manufacturers say they cannot keep working in the Egyptian market or invest more while illegal imports continue, said Mohamed Shamroukh, CEO of Egypt’s National Telecommunications Regulatory Authority (NTRA), on Thursday.
Unfair Competition for Local Phone Makers
Mobile phone makers in Egypt face unfair competition because imported phones are not subject to customs duties or value-added tax (VAT), Shamroukh explained during a press conference.
He mentioned that 2.5 million people have already downloaded the Telephony app, which was launched two days ago. This app helps users check if their phones are smuggled or legally taxed. It also allows people to register phones for personal use or import requests.
Just before this new system started, traders smuggled 594,000 iPhones and 725,000 Samsung phones into Egypt to avoid paying taxes and duties.
Legal Measures
To tackle smuggling, the Ministry of Communications and the Egyptian Customs Authority have filed 13,000 legal cases. Shamroukh said this new system is not meant to limit Egyptians bringing phones for personal use, but to stop the misuse of this privilege.
Support for Local Manufacturing
Six companies, including Oppo, Xiaomi, Samsung, and Realme, make 80% of the phones used in Egypt. Together, they could produce over 10 million phones, but they struggle because of competition from untaxed imported phones.
The new system lets traders and individuals import phones without needing agents. Shamroukh stressed the importance of growing Egypt’s local phone manufacturing and tech industry to create high-quality products and strengthen the economy.
Published: 3rd January 2025
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