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India Intends To Tax 10% Of PCB

Apr 27, 2018

The Indian government is studying the printed circuit board (PCB) for the key components of smart phones and has imposed a new import tariff of 10%, which has become one of the latest measures promoted by the New Delhi authorities to promote Made in India.


Taiwan PCB industry analysis, this move has little effect on the cross-strait industry, but the fear of increasing the cost of assembly plants in India, mainly because there is no complete PCB settlements and conditions, hydropower, regulations and other three major crises still to be improved, but the taxation is not profitable Mobile phones made in India.


The report quoted two sources as saying that Indias Ministry of Electronics and Information Technology has been working on a project to impose a 10% tariff on imported PCBs with built-in components. Last year, India sold a total of 134 million smartphones, making it the second-largest smartphone market in the world after China.


The PCB is the base of important parts such as the processor, memory, and wireless chipset in the smart phone. PCBs with built-in parts will account for half the cost of the entire smart phone. At present, most smart phone manufacturers import PCBs with built-in components into India and assemble them locally.


Government and industry sources said that if the Indian Ministry of Finance agrees with this proposal, it may be implemented in the next few days, when the cost of PCBs imported with built-in parts will increase, forcing manufacturers to switch to welding these parts in India.


Such measures may in the short term stimulate Apple and other manufacturers to expand manufacturing and assembly capacity in India, and bring advantages to South Koreas Samsung Electronics and Lava, a local company, that have already machined these parts on PCBs.

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