Massive crackdown required on grey market of open cell TV panels: ICEA

Lauding the government's decision to roll back 5 per cent import duty on open cell TV panels used to make television sets, industry body ICEA on Wednesday said now a massive crackdown is required on the component's grey market in the country. "The rampant smuggling and mis-declaration of open cell as tempered glass to undervalue imports was coming in the way of organized manufacturing. There is no incentive now to mis-declare open cell which is now at zero duty for manufacture of TVs," Indian Cellular and Electronics Association (ICEA) Chairman Pankaj Mohindroo said in a statement.

India's largest TV manufacturer Samsung had exited India in October 2018 after imposition of 5 per cent duty on open cell TV panels. "Even after roll back of import duty, a massive crackdown on open cells grey market is required. They under-invoice open cells and also avoid GST," Mohindroo said.

The government has also waived customs duty on import of printed circuit board assembly (PCBA) and cell (glass board/substrate) which are used to manufacture open cell TV panels. "With the BoM (Bill of Material) share of open cells is approximately in the range of 60-70 per cent of the total cost of finished LED/LCD TVs, it was hardly competitive for domestic manufacturers to continue assembling/ manufacturing activity. In fact, significant manufacturing capacities have been lost in recent past leading to loss of jobs and value creation," Mohindroo said.

He also urged the government to cut GST to 18 per cent from 28 per cent for the entire TV industry as the high rate was leading to rampant evasion of duty by non-declaration as well as mis-declaration of value. Mohindroo added that import of duty-free television sets from ASEAN countries especially Vietnam needs a review so that India too gains from the free trade agreement.