In: Economics
Smartphone industry analysis speak bout export and import smartphone write t 4000 word
Mobile phone and electronics manufactures have sought exempetion
from the new "faceless assessment" system for clearing
import/export shipments, which which they say have increased the
processing time upto 8-12 days as against 2-3 days
previously.
“We request all AEO (authorized economic operator) and In-Bond
Manufacturing entities import/export be permitted “green channel”
for self-assessment and automatic clearing for both import and
export shipments to promote faster capacity addition and greatly
improve ease of doing business,” the India Cellular and Electronic
Association said in a letter dated September 4, addressed to the
Central Board of Indirect Taxes & Customs (CBIC).
ICEA represents most global and Indian manufacturers including
Xiaomi, Vivo, Oppo, Apple, contract manufacturer Foxconn, Lava,
Micromax and Karbonn. Under the new digital system, the shipment
may be at port A, but documents digitally uploaded into the customs
online system are assigned randomly by an algorithm to an
assessment officer (AO) at port X, ICEA explained.
“Our members say that AO asks very detailed queries and documents
which go back and forth multiple times. This is causing the
processing lead time to increase to 8-12 days in many cases, 6-7
days on average. This has disrupted schedules across the board,” it
said.
ICEA also added that the surge in trade volume expected after
production-linked incentive (PLI) applicants start manufacturing in
India will make this problem worse. “Given the combined capacity
forecast by PLI applicants, the import / export load that various
ports (New Delhi Airport / ICDS, Chennai, Bangalore Airport / ICDS)
will surge to 3000-4000 air pallets per week at airports and about
700-800 containers per month in ICDS,” the body said.
By our estimates, this will occupy storage capacity available to
the extent of 60% of these stations due to the delays in assessment
will make the problem worse, it added.The PLI scheme with a total
outlay of Rs 41,000 crore will provide graded incentives to 5
global and 5 Indian companies to manufacture mobile phones in
India. Close to 20 applications from the likes of Smasung, Apple
and Dixon have been received for the scheme.
“The basic objective is to reduce compliance costs and manage
inventory. There is no fear of revenue loss since AEOs are selected
based on rigorous criteria and subjected to a comprehensive audit
later on,” ICEA said in the letter.
AEO is a party involved in the international movement of goods
approved by Customs and compliant with international security
standards.