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Our Bureau

Kolkata, Oct 3

The Indian Cellular Association (ICA) has appealed to the Government to lower the import duty on cellular accessories - such as batteries, chargers, blue tooth and hands free – from the current rate of 34 per cent to eight per cent.

A formal representation in this regard will soon be made to the Union Ministry of Finance.

Addressing a news conference here today, Mr Pankaj Mohindroo, National President of ICA, said that the high rate of import duty on cellular accessories had given rise to a huge market for counterfeit cellular batteries and other accessories. A rationalisation of the duty structure on cellular accessories, especially batteries, would go a long way in containing the spread of counterfeit cellular accessories in the market.

Batteries comprise nearly 50 per cent of the domestic market for cellular accessories, which has been estimated to be worth Rs 3,000 crore and has been growing at around 40 per cent annually.

Mr Mohindroo said the industry was engaging the relevant authorities with a view to containing the “rampant spread” of counterfeit products. According to him, nearly nine crore original mobile handsets were sold in the country in 2006-07, along with service packs that included original batteries. However, about 70-75 per cent of the replacement battery market was still dominated by counterfeit products.

Mr Mohindroo stressed upon the importance of standardisation of cellular accessories and allied products. He also alleged that “massive under-invoicing” was taking place with regard to cellular batteries that were being brought into the country through Jawaharlal Nehru Port Trust and Kolkata Port Trust. He appealed to the Directorate of Revenue Intelligence to look into the matter.

According to him, at present, about 50-60 million handsets were being manufactured in India annually. This number was expected to go up substantially in the years ahead, he said.

More Stories on : Telecommunications | Excise and Customs | Exports & Imports | Industry Associations

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‘Cut import duty on cell phone accessories’

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