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‘Adverse’ customs actions hit supplies to India’s mobile industry

Amid the rising chorus for boycotting Chinese products and the government’s proactive steps to lower dependence on imports, India’s growing mobile and electronics industry seems to be at the receiving end of the sudden aversion to imports from the northern neighbour.

In a letter to Finance Minister Nirmala Sitharaman, the Indian Cellular and Electronics Association (ICEA) has said that all China-origin imports of the electronics industry have come under adverse action by the customs at the ports without prior warning, which has impacted the supply chain.

“There was a refusal to clear followed by delays, and now, talk about 100 per cent examination. The logistics of seamless movement is in total disarray,” ICEA Chairman Pankaj Mohindroo wrote in the letter.

In another letter to Ajay Bhushan Pandey, Secretary, Department for Revenue, and Ajit Kumar, Chairman, Central Board of Indirect Taxes & Customs (CBIC), ICEA has noted that there is an across the board system delay in assigning DoE numbers, and queries are being raised for regular materials and all shipments are being subjected to open examination, including the opening of each box and repacking, among other issues.

ICEA noted that essential parts, components and accessories required for manufacturing in the 200 plus factories which came up following the adoption of ‘Make in India’, ‘Digital India’ and ‘Phased Manufacturing Programme’ (PMP) in the mobile industry has been impacted.

The industry body raised concerns in the letter to the FM that if the supply chain is broken, there will be a severe shortage of essential communication equipment such as smartphones, tablets and laptops required for the health network, work-from-home and online education since alternative supplies are not available in the local and global markets amid the Covid-19 outbreak.

Mohindroo noted that these goods are contributing valuable customs duty and IGST to the Central and state exchequers.

He also mentioned that companies have received word from Chennai, Mumbai and Delhi airports about the new examination procedure for all China origin consignments of being subject to 100 per cent examination, and urged the FM that the 100 per cent examination of only China origin goods be stopped so that the supply chain moves without hurdles.

“There are enough checks on inputs in the system, and there is little likelihood of any danger from China origin imports. Of course, dumping actions have to be checked, and this is best done by the law,” he said. –Dailyhunt

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