Import of Televisions From Vietnam

(a) and (b)  India Cellular & Electronics Association (ICEA) vide their letter dated 21.01.2019 informed that there is twenty five fold jump in the duty free import of Televisions from Vietnam (an ASEAN – India Free Trade Agreement (FTA) country), compared to 2017-18. ICEA has, inter-alia, suggested suspension of imports from Vietnam for three months as an immediate measure, pending comprehensive investigation.

As per Directorate General of Commercial Intelligence & Statistics (DGCI&S) data, the import of Televisions from Vietnam was INR 2,317 crore in the year 2018-19, as compared to INR 62 crore in 2017-18, which is about 37 fold jump. The import data of televisions from top 5 countries (including Vietnam) is annexed. India has entered into ASEAN – India Free Trade Agreement (AIFTA) with the Association of South East Asian Nations (ASEAN) to reduce the applied tariff rates. Under the AIFTA, import of televisions attract “nil” Basic Customs Duty (BCD) from ASEAN countries, including Vietnam, whereas BCD @20% is levied on import of televisions from non-FTA countries.

Government has taken several steps for promotion of domestic manufacturing of televisions, which include rationalization of tariff structure and exclusion of Flat Panel (LCD/ LED/ Plasma) Televisions from duty free allowance under the Baggage Rules. As a result, about 80% of the domestic demand of televisions is being met out of domestic production. As per the Consumer Electronics and Appliances Manufacturers Association (CEAMA), in 2018-19, out of domestic demand of 1.5 crore televisions, 1.2 crore televisions were manufactured domestically.

Customs authorities have been requested to strictly enforce the Rules of Origin for consignments coming from ASEAN countries. Further, the “Electronics and Information Technology Goods (Requirement of Compulsory Registration) Order, 2012” has mandated Indian Safety Standards for the notified electronic product categories, including the Liquid Crystal Display (LCD)/ Light Emitting Diode (LED) Televisions. The notified products must be registered with BIS before stock, sale, import, manufacture, etc., in India. The Customs authorities have been requested to strictly enforce the compliance of the Order.

(c)  ICEA has claimed that the actions suggested by them, including temporary suspension of import of televisions from ASEAN countries (including Vietnam) are likely to lead to an increase in production by about INR 3,000 crore per annum and add about 15,000 direct and indirect jobs.