Dot Overhauls Telecom Equipment Classification To Enhance Domestic Manufacturing
Updated: Jul 29, 2024 04:38:16pm
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Dot Overhauls Telecom Equipment Classification To Enhance Domestic Manufacturing
New Delhi, Jul 29 (KNN) The Department of Telecommunications (DoT) has initiated efforts to revise the classification system for traded telecom equipment, aiming to enhance domestic manufacturing and address customs duty collection issues, according to official sources.
This move follows recommendations from the Telecom Regulatory Authority of India (TRAI) to modernise coding systems and improve data capture for telecom equipment imports and exports.
The DoT is collaborating with the commerce department and the Directorate General of Foreign Trade (DGFT) to update the Harmonised Commodity Description and Coding System (HSN), a globally standardised tariff nomenclature used for trade classification.
An official stated, "The revision seeks to better categorise traded telecom equipment, identify trade patterns, and enable the government to create more targeted policies for networking and telecom equipment manufacturing."
The update is expected to streamline and expand the telecom products covered by two production-linked incentive (PLI) schemes in the sector.
TRAI has recommended that the DoT advocate for adopting a 12-digit HS Code across all sectors. Currently, India uses an eight-digit system, which provides less detailed product information compared to major exporting nations that employ 10 or 12-digit systems.
The DoT maintains a list of 52 HSN codes, with six modifications made in 2022-23 to clarify item classifications. Further updates are anticipated in response to TRAI's call for regular monitoring and periodic revisions.
TRAI's recommendations from September 2023 include creating a centralised portal for online grievances against HSN code misdeclaration and establishing an inter-ministerial committee for code updates.
The Telecom Export Promotion Council (TEPC) has identified 48 HSN codes for telecom equipment, ranging from modems to VSAT terminals, excluding smartphones.
India's efforts to upgrade its trade classification have been ongoing for years. Commerce department data reveals that 379 HSN codes are simply classified as 'Other,' leading to policy-making challenges due to lack of clear origin information for many items.
In the telecom sector, this lack of precise classification has reportedly allowed some importers to register goods under certain HS codes to avoid higher customs duties.
The initiative aims to address these issues and provide a more accurate picture of telecom equipment trade, potentially leading to more effective policies and improved customs duty collection.
(KNN Bureau)