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Anti-dumping duty on PCBs hits IT hardware PLI beneficiaries.


Date: 20-06-2024
Subject: Anti-dumping duty on PCBs hits IT hardware PLI beneficiaries
New Delhi: Companies making IT hardware under the production-linked incentive (PLI) scheme are hurt by an anti-dumping duty on bare printed-circuit boards (PCBs) that, many industry executives said, is making their products uncompetitive globally.

India imposed a 30% anti-dumping duty (ADD) on bare PCBs – an essential component in any electronics product – for five years in March on the commerce ministry’s recommendations following complaints from six local PCB makers, represented by the Indian Printed Circuit Association, over cheap inbound shipments from China and Hong Kong.

“The ADD levied on imported PCBs increases the production cost of domestically manufactured PLI scheme products, making them less competitive in the global market,” said an industry executive, who did not wish to be named.

Executives ET spoke with said the cost impact due to the ADD is between 3-4% for lighting products, 1% for IT hardware products, and 2-3% for telecom products.

This is especially hurting those firms that have undertaken domestic PCB assembly, where components like transistors and resistors are mounted on top of the bare PCB, as part of the localisation schedule of the revised IT hardware PLI scheme.

Source Name : Economic Times
 

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