New Delhi- India Cellular & Electronics Association (ICEA welcomes the recent circular by the Department of Revenue on interpretation of Display assembly based on recommendation of the Ministry of Electronics & IT and said it will give a positive message to all investors – Indian and global.
Mobile manufacturing was the first to come forward and adopted a Phased Manufacturing Program(PMP) to create the manufacturing capabilities and increase domestic value addition in the country. As per the PMP, Basic Customs Duty (BCD) on Display assembly was imposed on 1st October 2020 and parts of display assembly remained exempted.
MeitY has also submitted a document to the Department of Revenue that detailed the prominent constituents of Display assembly on which BCD will be exempted. However, field formations arrived at an interpretation which was at variance from the document and began investigations against most manufacturers. ICEA took up this issue with the relevant authorities and highlighted not just the matter, but the fact that such an interpretation would not be particularly helpful to India’s image of a country that was seriously pursuing policies to offer a predictable and stable business environment. This clarification, we hope, will set all such challenges to rest.
“This circular is a big relief to the Industry and will avoid unnecessary litigation. ICEA particularly acknowledges the Hon’ble Minister of Electronics & IT, Sh. Ashwani Vaishnav and Prime Minister’s Office for leading the way to find a resolution to this challenge. We also remain deeply appreciative that the Department of Revenue has acknowledged the view of MeitY on this critical issue” said Mr. . Pankaj Mohindroo Chairman ICEA.
Mr. Mohindroo further mentioned “This sets a new example in collaborative approach of the government under the dynamic leadership of the Hon’ble Prime Minister which not only understands but acts proactively to solve genuine challenges faced by the Industry. We remain committed to achieving the Hon’ble Prime Minister’s vision for becoming a global hub in mobile phone manufacturing.”
This pro industry move is at the heart of achieving “Ease of Doing Business”, based on consultations with the industry, and brings predictability to the cost of doing business in India which will eventually help the country realize its dream of US$300 billion manufacturing by 2026.
