Import used machinery reported by Economic Times according to the latest notification by the Ministry of Environment, forest and climate change (MoEF) custom duty on used plant Machinery having a residual life of at least 5 years used for electronics and electrical items would not require explicit permission from the “hazardous and other waste committees”
Until Now if someone wants to import used machinery for mobile handset or other electronic component manufacturing would have to wait for the committee to meet every few months for permission to start process but now just need to submit some sorts of necessary documents
and imitate the process importing the used machinery for production of electronic and electrical products. No need for explicit permission of the said committee.
The government of India taken a good initiative to make easier to import used machinery with will help to boost up the increased demand of electronics manufacturing sector especially in Mobile handset and component manufacturing companies.
ICA had highlighted the import-related issues in such types of capital equipment and machines faced by various mobile handset and other component manufacturers in India.
Industry experts said that the MoEF keeps a check on the import of used second hand good as well hazardous wastes but as capital equipment’s and machines like Surface Mount Technology (SMT) used widely in components mounting and fabrication on PCB,s ( Printed Circuit Board) are not waste are hazardous and can be used to assembly and production of other products.
To fulfill the boosted production demands of mobile production in India a lot of companies done a huge investment in this sector in the last few years. The mobile handset manufacturing units increased to 120 plus which was 2 in the year 2014.
The import of second-hand Machines will keep pace with the rise in demand for Electronic Manufacturing sector especially in mobile handset and it component manufacturing units and also helps the limiting the cost of the product which has come down due to the replacement of new equipment’s.
The cost of Setting a Complete SMT line is approx. 9 to 10 crores in India. It means a huge investment initially required to start production of Mobile Handset unit.
Importing of send hand equipment at low coat will now be a good option as earlier it was very complicated and lengthy due to permission issue by Hazardous committee.
You also remember that a few months back Indian governments imposed 10% addition custom duty of assembled printed circuit Boards due to that cost of the product will impacting. To save cost due to increased import duty companies are localizing the products and setting a second-hand machinery plan will be a good option.
The demand for localization of electronic products exotically increased and due to that the world leading electronic contact manufacture giants like Foxconn. Flextronics etc. do a lot of investments in India and expending their existing capacities up to doubling.
Due to favorable government policies, their companies are making India as an export hub where they will export assembled product to other global locations.it will help to create huge new employment in India to complete the production requirements. Few Mobile manufacturers like Lava, Vivo, Samsung have already established their production units in India.
This will be the milestone for the manufactures that want to localization of their electronic product but due to very high cost of new equipment unable to take steps.