Xiaomi, LG and Micromax-backed lobby seeks extension of zero import duty on open cell TV panels

The Indian Cellular and Electronics Association (ICEA) has sought extension of the zero import duty on open cell television panels beyond September 2019.

In a letter to Revenue Secretary Ajay Bushan Pandey, the ICEA said that the reduction of custom duty on open cell from 5 per cent to zero per cent till September 2020 has given a huge fillip to domestic manufacturing of LED televisions and led to reduction in imports from ASEAN countries.

It has sought an extension on the zero duty on open cell imports for three years.

Citing the Ministry of Electronics and IT's recent proposal to to impose duty of 5 per cent on open cell panels and bring pure cell to zero per cent in a bid to encourage the process of polariser film and COF bonding for open cell, the industry body said that it is concerned about its implementation as the anomaly in differentiation of open cell with bonding and open cell without bonding -- pure cell -- still remains a challenge.

The industry body, representing LG, Xiaomi and Micromax among others, warned of the growth of the grey market if the proposal is put into effect.

"If the duty on open cell is not extended beyond September 2020, it will again lead to high imports of LED TVs under FTA, a huge blow to the Make in India programme of the Government of India. It will have an adverse impact on the Indian domestic manufacturers and the EMS companies," the letter by ICEA Chairman Pankaj Mohindroo said.

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