ISLAMABAD: The Pakistan Telecommunication Authority (PTA) on Tuesday floated the draft ‘Mobile Device Manufacturing Regulations and Authorisation’ to market local manufacturing of handsets.
The draft regulations — in line with the government’s Mobile Device Manufacturing (MDM) Policy launched on June 2 this year — aims to encourage domestic production of low, medium and high-end smartphones.
Under the new licensing regime, foreign companies are going to be incentivised for investments within the manufacturing of mobile handsets in Pakistan. All stakeholders can file comments and feedback by Oct 5, 2020.
The PTA has said that this authorisation will inherit force from the date of its issuance and would be valid for a period of ten years in Pakistan only. The regulations exclude Azad Jammu & Kashmir (AJ&K) and Gilgit – Baltistan (GB).
PTA aims for transfer of technology within three years from issuance of authorisation
The draft states that one authorisation allows the manufacturer to travel for a selected mobile brand only. a producing plant is allowed to manufacturer mobile device models for a selected brand only and just in case of quite one brand belonging to different manufacturers separate manufacturing facility and authorisation is required.
The manufacturer has got to obtain ISO 9001 certification within one year from issuance of producing authorisation. The manufacturer will need to ensure transfer of technology of mobile device manufacturing within three years from issuance of authorisation by PTA for the proliferation of technology and skill development within Pakistan.
PTA has highlighted that transfer of technology includes complete transfer of chipset design, set design & fabrication, monitor design & fabrication and associated accessories like power cables, handsfree etc.
To promote localisation, PTA has made it mandatory for the manufacturer to make sure local packing materials are used and its cost has got to be two per cent of total manufactured device. While other local components include chargers, Bluetooth hands free, CPU board assembly, plastic body of the mobile set, display screens and battery.
At an equivalent time, all localisation has got to be manufactured as per the international standards.
The PTA draft also binds the manufacturer to offer a six month advance notice to the regulator to make sure it's complied with all legal obligations including the warranty period of its product, after sales services support etc.
Application fee for the manufacturing licence is $5,000 or equivalent in Pak rupees and therefore the total fee to urge the manufacturing authorisation is $50,000 or its equivalent in local currency.
At an equivalent time, any defaulter of PTA cannot apply for any authorisation licence and therefore the shareholders or members of the defaulter company etc. cannot have ownership or be a shareholder within the new company applying for any mobile manufacturing devices.
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