3G USB Connector and Charging Port 821-0551-covered by Warrany iPhone 3G

My iPhone 3G USB Dock Connector and Charging Port 821-0551-A is malfunctioning, due to a mechanical defect I assume, and hence the phone is not charging.
Is this part covered by the Apple Warranty?
I purchased the iPhone less than a year ago, in Israel, via Cellcom, and they claim that mechanical problems do not fall under warrenty, and as an Apple reseller recommend that I Jailbreak my phone and fix this, or purchase a new phone (#?!) instead of a replacement part that costs $2.99.
Kindly confirm if mechanical defects in the 3G USB Dock Connector and Charging Port 821-0551- Are, or are not part of the warranty so that I may see if the local dealers advising me to break my contract with Apple, is warrented.
iphone 3GS iPhone OS 3.0