2 May 2017
INDIA: Overseas-Sourced Mobile Phones to Face 5-10% Import Levy
Customs duties of between 5 and 10% will be levied on imported mobile phones under a government proposal to abolish their duty-free status. Following an apparent confirmation that such tariffs will not compromise India’s obligations under the terms of the World Trade Organisation’s Information Technology Agreement, a final decision on the levy is expected to be announced prior to the July 1 enactment the country’s Goods and Services Tax (GST).
The move comes as part of a government bid to boost the domestic production of mobile phones, while curtailing – mostly Chinese – imports in the sector and is in line with the aims of the Make-in-India initiative. It is also timely, given that the imposition of the GST will strip domestic phone producers of a number of their current advantages, including an exemption from countervailing duties on imported electronic components.