NEW DELHi: The electronics industry has written to the government complaining about “adverse action by customs at ports" against imports coming in from China and requested them to let the shipments in.
The India Cellular and Electronics Association (ICEA), which represents the electronics industry in India, has written to the Finance Minister, Department of Revenue at the Finance Ministry and the Central Board of Indirect Taxes and Customs (CBIC), complaining about supply chain disruptions at ports.
The industry body said the move came “without prior warning" and containers aren’t being cleared, causing delays. According to the ICEA, there are disruptions at several ports of entry and it affects the industry’s ability to do business. Recent reports have indicated that certain consignments of good coming in from China had been blocked at ports recently, due to “security concerns", though the government has denied passing any such order.
The ICEA’s letter says that logistics are in “total disarray", reminding the government that the industry has lost Rs40,000 crore worth of production and only 40% normalcy has been possible so far after the lockdowns ended. “India is at a very crucial moment with the launch of PLI (production linked incentive) and two other schemes, which requires a high level of motivation in the HQs’s of global and local companies," the industry body states in the letter.
Further, the letter states that there is “talk of" 100% examination of containers whereas usually “goods are cleared automatically without examination" for importers who are recognised under the Authorized Economic Operator (AEO) programme. “We understand that even goods already cleared and loaded in trucks for transport to the users' warehouse are being recalled and examined," the ICEA wrote.
“There are enough checks on inputs in the system, there is little likelihood of any danger from China origin imports. Of course, dumping actions have to be checked, this is best done by law," the letter adds.