New Delhi: Foreign companies such as Apple that import finished goods or inputs from China to India could be spared the recently imposed 100% physical check of shipments from that country, people familiar with the matter told ET. The heightened scrutiny of Chinese imports, which has led to goods getting stuck at ports and airports, follows border hostilities between the two nations and a move to reduce India’s business and trade ties with its neighbour.
The Department for Promotion of Industry and Internal Trade (DPIIT) informally flagged the issue to the finance ministry after the US-India Strategic Partnership Forum raised its concern over the matter. The forum, which represents key US companies in India, has also written to the finance ministry on the issue.
“Their representation is being examined,” a government official said.
“There is no intention to cause any hardship to industry,” said one of the persons cited above.
‘No Formal Instructions’
The government maintains that there are no formal instructions to customs departments to carry out such checks and they may be making them because of intelligence alerts.
A mechanism that exempts US and possibly other non-China companies is being examined as system-based alerts, such as the one said to have been issued for the latest enhanced scrutiny, are generic in nature and cover all goods. Such alerts pertain to the country of origin, irrespective of the importing entity.
Indian customs began 100% physical examination of Chinese imports from Monday midnight. The shipments of a number of US tech and telecom companies have got stuck.
Major US companies such as Apple rely on imports of finished products or components from China to serve the Indian market. Chennai is one of the key hubs for imports of telecom parts and equipment as also medical devices and auto components.
There is growing apprehension among companies that delays will have an impact on production with parts of the supply chain dependent on Chinese imports, resulting in scarcity and increased prices. Several business lobby groups have called on the government to free up the movement of goods.
Industry is also wary of physical examination as repackaging goods is not only cumbersome and time consuming, but also entails additional costs as customs brokers have to engage extra manpower for this.
Source: indiatimes.com