DGFT changes Status of Camera Modules and Flat Panel Displays From Restricted to Free

DGFT changes Status of Camera Modules and Flat Panel Displays From Restricted to Free The Directorate General of Foreign Trade (DGFT) on Thursday amended the status of specific components such as flat panel displays and camera modules from 'Restricted' to 'Free,' with immediate effect, bringing relief to smartphone producers who had anticipated large-scale disruption to local manufacturing. The status of particular components that were previously classed as 'Free' has been altered to 'Restricted', according to a DGFT notification dated February 9 and effective immediately. Since February 9, shipments of crucial components for smartphones, including as flat panel displays and camera modules, have been held up by customs. If handset factories aren't emptied within the next several days, industry experts have warned that production will be halted. India Cellular and Electronics Association (ICEA) stated, “…Directorate General of Foreign Trade, following a meeting between the Ministry of Electronics & IT, Ministry of Finance and Ministry of Commerce & Industry, has agreed to remove restrictions on displays and camera modules that were brought in via a DGFT notification dated 09 February, 2022.”  Apple, Oppo, Vivo, Xiaomi, Lava, and Foxconn and Flex are among the top smartphone manufacturers represented by ICEA. “It (government) changed the categories of displays and camera modules from “restricted” to “free” – thus avoiding any disruption in the supply chain…,” ICEA added. Import permission is not required for goods classed as 'Free' in the import policy. 'Restricted' items, on the other hand, require permission or a licence from the authorities to be brought into the country. The latest disruption fears came as the industry was already beset by supply chain and component shortages, which hampered launches and caused price spikes. In an earlier letter to Ajay Prakash Sawhney, secretary of the Ministry of Electronics and Information Technology (MeitY), the ICEA stated that the February 9 notification was made without consultation or prior notice to the industry. The 'flat panel display' modules are vital to mobile phones, TVs, laptop & tablet computers, and all-in-one PCs (touch and non-touch), according to handset firms, and are not made in India. As a result, many product groups are entirely reliant on imports. Source: The Economic Times