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Home > News > Business > India proposes to impose a 10% tariff on imported mobile phone PCBs


India proposes to impose a 10% tariff on imported mobile phone PCBs

Tuesday,Apr 03,2018

 Recently, two Indian officials pointed out that the Ministry of Electronics and Information Technology of India intends to levy a 10% tariff on smart phone import circuit boards (PCBs) to enhance domestic manufacturing capabilities. This is also the latest plan of the government to promote the electronic industry in India. .

As a key part of a mobile phone, a circuit board is embedded with a processor, a memory, and a wireless chip set, which can be said to be the core of an electronic device, and accounts for about half of the cost of a smart phone. At present, most smart phone manufacturers import circuit boards with embedded components to India and then assemble them locally. Last year, India sold a total of 134 million smartphones, making it the second largest smartphone market in the world after China.
Prime Minister Modi of India proposed a phased manufacturing program (PMP) in 2016, hoping that the local smart phone manufacturing industry will increase its production value year by year. The Modi government has raised tariffs on low-value parts such as batteries and chargers, and has also increased tariffs on mobile phones at the beginning of the year.
Indian government and industry sources said that if the Indian Ministry of Finance agrees with this proposal, it may be implemented in the next few days, when the cost of PCBs that have imported built-in parts will increase, forcing manufacturers to switch to welding these parts in India.
Taiwan PCB industry analysis, this move has little effect on China's PCB industry, but it is feared that the cost of assembly plants in India will increase.



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