Mobile phones' import duties may be classified in Azerbaijan
By Rashid Shirinov
The import duty rates for mobile phones being imported to Azerbaijan may be classified by the price range, a source in the telecommunication market of the country told Trend.
The volume of the duties will vary depending on the devices of high, medium and low price segments. For instance, the duty on iPhone model will be higher than a fee for a cheaper phone.
“Currently, this issue is being discussed. If a decision over application of the different rates is made, it is technically possible to implement by using the advantages of the IMEI numbers registration system that allows to determine the models and parameters of mobile devices,” the source said.
Currently, the price range of mobile phones available on the market roughly varies between $30 and $930. “The point is that mobile phones of low price segment, such as Nokia 105 ($30), should be registered for 5-manat duty ($3), while the figure for iPhone 6 or iPhone 7 should be 80-150 manats ($50-93)," the source said.
The new model, which is being considered, has also other features and complexities. “In order to check whether a person went abroad or not, it will be required to integrate it into the system of border service. Likewise, to determine if the fee was paid, and to permit registration of the phone, integration with the system of customs will be needed.”
The interlocutor also told about possible creation of a website where a person could learn what duties he will have to pay for importing a mobile phone of a particular model for personal use. “In this case, there will be no restrictions, and everyone will be able to import as many phones as they wish.”
These measures are designed to protect the market, because each person importing mobile phones to the country will stand on a par with entrepreneurs. Today, the duty applies only to entrepreneurs, who pay the fee of 36 percent from the cost of the mobile phone, and additionally $1 for registration of IMEI number.
This innovation will bring the principle of equity to the Azerbaijani market – both entrepreneurs and physical persons will pay the same amount of import duties.
“Today, only 10-15 percent of the mobile phones, brought by entrepreneurs in the country, are imported officially,” the source said. Most of these phones belong to medium and low price segment. Meanwhile, most of the phones of high price range enter the market either through ‘grey’ channels or by physical persons.
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Rashid Shirinov is AzerNews’ staff journalist, follow him on Twitter: @RashidShirinov
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