New Delhi, Mar 02: In the wake of budgetary reduction in overall duties on cellular handsets, mobile manufacturers tomorrow will take stock of the impact of these developments on prices and chart a future course of action aimed at curbing the grey market. The Indian Cellular Association (ICA) would look at the recommendation of the government vis a vis the cut in duties and chart a course to accelerate its impact that would soon transform into a further price reduction in handsets.
ICA is the apex body of manufacturers, distributors and retailers of mobile handsets, mobile terminals and mobile it products. The body, headed by Pankaj Mohindroo from Agrani Industries, has been formed to provide value and service to the mobile handset industry in India. The founding members include Agrani Convergence Ltd, Alcatel, HCL Infosystems, Mitsubishi, Motorola, Panasonic, Philips, Samsung, Salora India, Siemens Ingram Micro, Redington and Sony Ericsson.
The Union budget for 2002-03 exempted cellular phones from countervailing duty (CVD), while increasing customs duty on these products to 10 per cent from five per cent. The budgetary proposals had brought down overall duties to about 14 per cent from 26.7 per cent.
The apex body also plans to encourage customers to buy handsets from authorised dealers by issuing 'Best Practice' certificates to affiliated dealers. The scheme will cover around 14,000 retailers associated with the ICA. The organisation is in talks with the dealer and retailer network to promote the sale of used handsets in good quality.
Bureau Report