Chinese Phones, Auto-Parts Will Become More Costly As New Higher Import Duty To Be Imposed
Indian Govt is now all set to impose even stricter import duty on goods whose origin is in China. Extra import duty on several Chinese products have already been imposed due to the diplomatic tensions between these countries.
But brace for impact, as the taxes are soon going to rise even more.
Electronics products such as smartphones are expected to become more costly now.
Keep reading to find out more.
Higher Import Duty On Chinese Goods
After imposing 10% additional import duty, and restricting the import of several critical Chinese made products, Govt of India is now all set to increase the import duty even more.
As per a report by Telegraph India, “The items range from soybean to auto-components, electronics to vegetable oil, leather goods to textile products.”
What Is The Need?
Govt sources have found that import of goods with Chinese origin have increased from those countries, which have free trade agreements with India.
Hong Kong, Taiwan are prominent among them.
It seems that Chinese companies are now re-routing the products via these countries, to save on the taxes.
But Govt is determined to stop this.
A Govt official said, “We have found re-routing of products originating mostly from China through countries with which we have FTAs to take advantage of lower duties. These include electronics, leather products and textiles,”
Stricter Rules For Chinese Origin Items
As per the report, Govt officials will now carry an intense and strict audit of all items such as footwear, apparel, leather products, clocks and watches, electrical machinery and equipment which have their origin in China, but imported via other countries.
HS Code or Harmonized System of these imported items will be checked more thoroughly, and higher import duty will be imposed for these items.
Besides, this move will also help Govt to counter the fake products that are imported via other countries, but are make in China.
The market for counterfeit Chinese products is more than $15 billion yearly, and Govt of India is determined to stop this.
An unnamed Finance Ministry source said, “Despite complaints from importers of red tape, we still find a considerable re-routing as the spike in electronics imports shows,”
Very soon, a new self-certification protocol will be introduced, along with random checks to ensure that Chinese origin products are not re-routed to India from other countries.
We will keep you updated, as more details come in.