PTA drafts rules for local mobile manufacturing

Aftab Ahmed

Islamabad: The federal government has expedited efforts to implement Mobile Device Manufacturing Policy – to promote local manufacturing and assembly of mobile handsets in the country as the Pakistan Telecommunication Authority (PTA) seeks feedback from all stakeholders draft rules and regulations for local mobile phone manufacturing.

Economic Coordination Committee (ECC), in its meeting held in March this year, had approved the Mobile Device Manufacturing Policy to promote local manufacturing and assembly of mobile phone handsets.

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The ECC had approved the removal of Regulatory Duty for CKD/SKD manufacturing by PTA-approved manufactures under input/output Co-Efficient Organization (IOCO) approved import authorization. It also removed fixed Income Tax on CKD/SKD manufacturing of mobile devices up to USD 350 category and increase in Fixed Income Tax on USD 351-500 USD category by Rs 2000 and>USD 500 by Rs.6300 on CKD/SKD manufacturing only.

The ECC had removed fixed Sales Tax on CKD/SKD manufacturing of mobile devices and allowed PTA activation of handsets manufacturing in the country under import authorization of inputs by IOCO in the CKS/SKD kit (8517.1211) and not under HS Code 8517.7000, i.e., parts. It also stressed that the local industry should ensure localization of parts and components as per the roadmap included in the draft policy.

“To promote local manufacturing and assembly, and to discourage smuggling of mobile handsets, Pakistan Telecommunication Authority has prepared draft Mobile Device Manufacturing Regulations and Authorisation Template in the light of Mobile Device Manufacturing Policy issued by the Government of Pakistan on 2nd June 2020,” PTA said in an official statement.

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The telecommunication regulator invited telecom consumers, stakeholders, and the public to provide their comments on the draft available at the PTA website link by October 5, 2020. In the case of no feedback, the draft will be final.

“PTA has taken substantial steps to promote local manufacturing of handsets. PTA is envisaging domestic production of the low, medium, and high-end smartphones, and foreign companies will be incentivized to invest in the manufacturing of mobile handsets in Pakistan,” it added.