A DGFT notification dated February 9, and effective immediately, had said that the status of specific components, which were previously classified as ‘Free’, has been changed to ‘Restricted’. This had meant that shipments of key components such as flat panel displays and camera modules for smartphones were held up by customs since February 9. Industry executives had warned that handset factories will have to suspend production in the next couple of days if they aren’t cleared.
“…Directorate General of Foreign Trade, following a meeting between the Ministry of Electronics & IT, Ministry of Finance and Ministry of Commerce & Industry, has agreed to remove restrictions on displays and camera modules that were brought in via a DGFT notification dated 09 February, 2022,”India Cellular and Electronics Association (ICEA) said in a release.
ICEA represents top smartphone makers such as Apple, Oppo, Vivo, Xiaomi, Lava and contract manufacturers like Foxconn and Flex.
“It (government) changed the categories of displays and camera modules from “restricted” to “free” – thus avoiding any disruption in the supply chain…,” ICEA added.
Goods classified as ‘Free’ in the import policy do not require permission from DGFT for import. However, ‘Restricted’ goods require authorization or licence from the authority for being imported into the country.
The latest fears of disruption had come with the industry already plagued by supply chain and component shortage issues, which have hurt launches and forced price hikes.
The ICEA, in a previous letter to ministry of electronics & information technology (MeitY) secretary Ajay Prakash Sawhney, had said that the February 9 notification was issued without any consultation, or prior information to the industry.
Handset companies had said that the ‘flat panel display’ modules are essential to mobile phones, TVs, notebook & tablet computers and all-in-one PCs (touch and non-touch), and were not manufactured in India. Hence these product segments are completely dependent on imports.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
