Colombo (PTI): Worried over the growing grey market for mobile phones due to illegal imports from countries like China and India, Sri Lankan Customs has decided to confiscate such cell phones being brought in as accompanied or unaccompanied baggage or as gift.

The Sri Lanka Customs has announced that all goods for commercial purposes/commercial quantities have to be imported in accordance with the provision of the Import Control Act and regulations framed there under.

It said all the goods for commercial purposes, imported or bought in as accompanied or unaccompanied baggage and gifts, contrary to the Act, would be forfeited.

It added that the importer of such goods would also be liable to penalties/forfeited under Section 129 of the Customs Ordinance. This was enforced with effect from May 15.

The action follows demand by local mobile phone importers for strong law enforcement to combat illegal mobile phone imports into the Island country.

Dinesh Anthony, Sr Sales Manager of Abans Office Automation, a dealer for many mobile phone brands, said these smuggled hand phones come from Dubai, China and India to Sri Lanka, the state-owned "Daily News" newspaper reported.

It is estimated that over 20,000 mobile phones are entering the country through illegal channels every month.

"We are optimistic that this initiative will help in combating the grey market in Sri Lanka with strong implementation Directo/ Chief Executive Officer of Softlogic Communications Samantha Rajapaksa told the "Daily News".

Softlogic an authorised dealer for Nokia phones in Sri Lanka.

The Sri Lankan Government has imposed a 6 per cent tax and VAT for mobile phones imported to Sri Lanka.