India Cellular & Electronics Association (ICEA) is giving a major emphasis on research and development of smartphones in the country and has said that it is in the final stages of sharing a plan with the government to create a strong .
Handset makers, government differ over export sops under RodTEP
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Synopsis
The Merchandise Exports Incentive Scheme (MEIS), which offered 2-4% of free-on-board export value as duty credit scrips to handset and component exporters, expired on December 31, and the government is mulling a rate of 0.2-0.7% on mobile phones under RoDTEP, which is replacing MEIS.
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NEW DELHI: Mobile phone companies have opposed a move by the government to reduce the rate of new export sops on handsets under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. But the government says the handset makers have no reason to complain, as they are being more than compensated because of the production-linked incentive (PLI) scheme.
Synopsis
“We are suggesting that import duty should be capped on either 20% or Rs 4000 of the bill value of a device, whichever is higher. This is because in high-end phones, import duty is creating a large arbitrage and promoting the grey market of these devices,” a senior industry executive told ET.
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New Delhi: India’s apex electronics makers body has urged the government to reduce the 20% basic customs duty on mobile phones, because of large scale manufacturing of handsets in India, imports are no longer a threat and the industry has the strength to face competition.
“We are suggesting that import duty should be capped on either 20% or Rs 4000 of the bill value of a device, whichever is higher. This is because in high-end phones, import duty is creating a large arbitrage and promoting the grey market of these devices,” a senior industry executive told ET.
Companies want separate 3% PLI incentives for PCB assembly
In fact, it said China, the world’s largest electronics producer, could be importing 30% of India made PCBAs in the future.
Synopsis
In a letter written to the Ministry of Electronics and IT (MeitY) on December 19, the India Cellular & Electronics Association (ICEA) sought a Rs 15,000-crore incentive package strictly for export of PCBAs and barring of products such as mobile phones and laptops which are already claiming PLI.
New Delhi: Electronics manufacturers have urged the government to introduce a separate production-linked incentive (PLI) of 3% on assembly of printed circuit boards (PCBs), which presents an export opportunity of $109 billion, second only to mobile phones, over the next five years.