NTC says draft rules won’t disrupt used phone market
Filipinos will still be allowed to buy and sell their personal used mobile devices without securing government permits under proposed regulations covering the commercial trade of refurbished phones, the National Telecommunications Commission (NTC) clarified.
On Tuesday, the regulator said its draft rules on the importation and sale of refurbished mobile devices would apply only to businesses dealing in commercial quantities, and not individuals selling or trading their own devices.
Such rules are also not intended to eliminate the secondhand phone market but to give consumers more options for more affordable, properly refurbished devices, the NTC added.
Commercial imports
Under a proposed memorandum circular issued in September, the NTC would allow the commercial importation and sale of refurbished mobile phones, tablets and similar devices that are type-approved, legitimately sourced and free from unauthorized modifications.
The devices would also have to be properly sanitized, graded according to their condition, compatible with Philippine mobile networks and fully functional before being offered to consumers.
Dealers would be required to provide a one-year repair or replacement warranty.
Businesses seeking to import or sell refurbished devices would have to secure a Dealer’s Permit for Used, Reconditioned or Refurbished Mobile Devices, subject to a proposed minimum capitalization requirement of P20 million.
The draft rules also set an annual permit fee of P2,500 per branch, alongside a P500 filing fee and a P1,500 inspection fee, likewise charged annually per branch.
Deep-enough pocket
The NTC explained that the capitalization requirement was intended to ensure that licensed importers and dealers had sufficient financial capacity to comply with product standards and honor warranty obligations.
It added that the proposed framework would also help protect consumers against smuggled, stolen, improperly refurbished and unsafe devices while providing a mechanism for the proper disposal and recycling of units no longer fit for use.
In an earlier statement, the commission cited the unauthorized sale of stolen mobile phones and the trade in tampered or defective devices among the concerns prompting the proposed regulations.
“The regulation is being considered to stop the unauthorized sale of illegally acquired or stolen mobile phones and the unscrupulous trade of tampered and defective mobile phones in the market,” the NTC had said.
