that specific components critical for the production of smartphone have been classified as “restricted”. They were previously classified as “free”, which meant that importing the product does not require approval from the DGFT. However, in the case of “restricted” goods, the importer is required to obtain a license from the authority. Accordingly, shipments of several key components for smartphones, like camera modules and flat panel displays have been held up by customs over the past few weeks.
“Serious disruption in the already strained supply chain has been caused. The matter is getting resolved between DGFT, MeitY and DOR (Department of Revenue),” Pankaj Mohindroo, chairman of the India Cellular and Electronics Association (ICEA), told the Economic Times.
Manufacturers of handsets say their operations have been disrupted by the shortage of flat panel display modules which essential for the manufacturing of mobile phones, tablet computers and TVs, among other products. “These components are not manufactured in India and hence these product segments are completely dependent on imports,” an industry executive said.
Accordingly, manufacturers are calling on the Government Secretary at the Ministry of Electronics & Information Technology (MeitY), Ajay Prakash Sawhney, to intervene immediately to resolve the matter. Meanwhile, the ICEA has also written to the Minister, pointing out that notification was issued without prior consultation with the industry.
India is the world’s second-largest mobile phone producer. The latest disruptions come after supply chain and component shortage issues which have already plagued the industry.
