In order to promote the production of mobile phone components in India, the Indian government decided to increase tariffs on imported LCD modules early. South Korea’s Samsung Electronics recently sent a letter to the Indian government stating that it would consider placing the original plan for mass production of smart phones in India.
According to India’s “Economic Times” (Economic Times), according to Indian government regulations, mobile phone manufacturers such as Samsung Electronics Co. originally only had to produce mobile phone touch LCD panel components in India before March 31, 2020. Will not face high tariffs.
The report quoted a senior Samsung executive who read this letter and said that if the Indian government imposes tariffs on LCD modules and increases production costs, Samsung will have to suspend the production of its flagship products Note 9 and S9 in India.
Samsung has invested 100 million US dollars to set up a mobile phone touch LCD panel assembly plant in India, which is expected to operate on April 1, 2020, and can produce automatic organic light-emitting diode (AMOLED) panels.
However, the Indian government earlier this month issued a new two-month timetable order for the Phased Manufacturing Programme (PMP), requiring all manufacturers to start manufacturing mobile phone touch LCD module components in India in February 2019. Otherwise, the import of these components will be subject to a 10% tariff, including additional taxes will reach 11%.
The Indian mobile phone market is currently the world’s second largest market after China. However, after Chinese manufacturers’ imported goods control the Indian market, the Indian government has launched a phased production plan, hoping that increasing tariffs will force mobile phones and mobile phone LCD modules to zero. Components and related productions can be produced locally in India.
The Indian government has previously imposed tariffs on mobile phone chargers, batteries, headsets, microphones, receivers, USB cables and other components. Then in fiscal year 2018, it has promoted Indian production (Make in India) and levied tariffs, harming certain mobile phone manufacturers that have established factories in India, including Taiwanese businessmen.
In view of the fact that the Indian government’s PMP plan to impose early tariffs may harm the mobile phone industry, the Consumer Electronics and Manufacturing Association of India (CEAMA) and the Indian Mobile Phone and Electronics Association (ICEA) are lobbying the government to postpone the deadline for the production of mobile phone LCD modules in India. The end of 2020.
