MeitY flags revenue dept’s move to levy customs duty on phone display parts

A letter from the ministry of electronics and information technology (MeitY) to the department of revenue in March of this year brought attention to potential discrepancies regarding the legality of customs duty assessments on the touch panel or cover glass, a crucial portion of mobile phones.

Government and industry leaders claim that the apparent disagreements between the two ministries are pertinent to the duty evasion notices that the Directorate of Revenue Intelligence (DRI) has issued to Chinese small and medium-sized businesses.

If the problem is not fixed right away, the effect would not be limited to Chinese companies and might hinder India’s plans to become a centre for the manufacture of electronics. A representative of the revenue department acknowledged receiving the letter and promised to look into the industry’s complaints.

The smartphone industry anticipates similar letters for other businesses. It issued a warning that the problem would damage the industry to the tune of Rs 20,000 crore and harm India’s reputation.

On July 13, the DRI sent Oppo a notice requesting Rs 4,389 crore in customs duties, citing incorrect misdeclaration of imported goods. According to a Vivo spokeswoman, the company also received a notice of this nature. The business is examining the notice, will work with law enforcement, and “adhere to the law.

An industry group that represents Indian smartphone manufacturers wrote to the revenue department, the Prime Minister’s Office, and the IT ministry in June in response to the MeitY letter, calling the duty requirements “preposterous.”

 

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