Lok Sabha Question No. 163 (STARRED), answered on 2019-07-03
Subject: Import of Televisions from Vietnam
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Ajay (Teni) Misra

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA STARRED QUESTION No.*163

TO BE ANSWERED ON 03.07.2019

## IMPORT OF TELEVISIONS FROM VIETNAM

## *163      SHRI AJAY MISRA TENI:

Will the Minister of Electronics and Information Technology be pleased to state:

- (a) whether  the  Government  has  received  any  request  from  electronics  manufacturing industry with regard to banning of import of televisions from Vietnam after a twentyfive times jump in the import of the same from Vietnam within the last one year;
- (b) if so, the details thereof along with the decision taken by the Government thereon; and
- (c) the extent to which the electronics industry of the country is likely to be benefited by the said ban?

## ANSWER

MINISTER OF ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

- (a) to (c):   A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO LOK SABHA  STARRED QUESTION NO.*163 FOR 03.07.2019 REGARDING   IMPORT OF TELEVISIONS FROM VIETNAM

……..

(a)  and  (b):    India  Cellular  &  Electronics  Association  (ICEA)  vide  their  letter  dated  21.01.2019 informed that there is twenty five fold jump in the duty free import of Televisions from Vietnam (an ASEAN - India Free Trade Agreement (FTA) country), compared to 2017-18. ICEA has, inter-alia , suggested suspension of imports from Vietnam for three months as an immediate measure, pending comprehensive investigation.

As  per  Directorate  General  of  Commercial  Intelligence  &  Statistics  (DGCI&S)  data,  the  import  of Televisions from Vietnam was INR 2,317 crore in the year 2018-19, as compared to INR 62 crore in 2017-18, which is about 37 fold jump. The import data of televisions from top 5 countries (including Vietnam) is annexed. India has entered into ASEAN - India Free Trade Agreement (AIFTA)  with the Association  of  South  East  Asian  Nations  (ASEAN)  to  reduce  the  applied  tariff  rates.  Under  the AIFTA,  import  of  televisions  attract  'nil'  Basic  Customs  Duty  (BCD)  from  ASEAN  countries, including Vietnam, whereas BCD @20% is levied on import of televisions from non-FTA countries.

Government has taken several steps for promotion of domestic manufacturing of televisions, which include rationalization of tariff structure and exclusion of Flat Panel (LCD/ LED/ Plasma) Televisions from duty free allowance under the Baggage Rules. As a result, about 80% of the domestic demand of televisions is being met out of domestic production. As per the Consumer Electronics and Appliances Manufacturers Association (CEAMA), in 2018-19, out of domestic demand of 1.5 crore televisions, 1.2 crore televisions were manufactured domestically.

Customs  authorities  have  been  requested  to  strictly  enforce  the  Rules  of  Origin  for  consignments coming  from  ASEAN  countries.  Further,  the  'Electronics  and  Information  Technology  Goods (Requirement of Compulsory Registration) Order, 2012' has mandated Indian Safety Standards for the notified  electronic  product  categories,  including  the  Liquid  Crystal  Display  (LCD)/  Light  Emitting Diode (LED) Televisions. The notified products must be registered with BIS before stock, sale, import, manufacture,  etc.,  in  India.  The  Customs  authorities  have  been  requested  to  strictly  enforce  the compliance of the Order.

- (c):   ICEA has claimed that the actions suggested by them, including temporary suspension of import of  televisions  from  ASEAN  countries  (including  Vietnam)    are  likely  to  lead  to  an  increase  in production by about INR 3,000 crore per annum and add about 15,000 direct and indirect jobs.

*******

## Import of Televisions from Top 5 Countries

Annexure

Value (INR crore)

| Country                            | 2014-15   | 2015-16   | 2016-17   | 2017-18   | 2018-19   |
|------------------------------------|-----------|-----------|-----------|-----------|-----------|
| All Countries                      | 4,835     | 3,151     | 3,758     | 4,962     | 7,224     |
| China                              | 1,528     | 1,050     | 1,577     | 2,027     | 3,807     |
| Vietnam                            | 3         | 1         | 27        | 62        | 2,317     |
| Malaysia                           | 2,752     | 1,794     | 1,883     | 2,485     | 750       |
| Hong Kong                          | 5         | 5         | 16        | 12        | 81        |
| Taiwan                             | 4         | 4         | 2         | 5         | 56        |
| Total Imports from Top 5 Countries | 4,292     | 2,854     | 3,505     | 4,591     | 7,011     |

| %Imports   | Countries 89   | 91   | 93   | 93   | 97   |
|------------|----------------|------|------|------|------|

Source: DGCI&S