Illegally assembled TVs flood markets ahead of Diwali
NEW DELHI: If the marketing curveball of Diwali offers has caught your attention to buy a brand new LED TV, beware! You may be bargaining for a poor product.
An investigation by Directorate of Revenue Intelligence (DRI) has found that unscrupulous dealers across the country are importing LED TVs by disassembling them into various parts to evade duty. This unauthorized tinkering with the original assembly is adversely affecting the quality of TV sets.
Raising concern over the issue, DRI has written to Central Board of Excise and Customs (CBEC) recommending that importers of parts be made to compulsorily register with Bureau of India Standard (BIS). Presently, only importers of whole TV sets are required to have a BIS registration.
CBEC sources say not having BIS registration for importers of parts is helping unscrupulous dealers to get away with such fraudulent imports and also escape scrutiny.
It came to light when DRI was conducting an investigation about certain dealers misusing BIS registration number of a top electronics manufacturer to illegally import LCD/LED/Plasma TVs from Malaysia and Thailand. As TV manufacturing facilities in these countries do not have a BIS registration, such products are not allowed to enter India. Through raids across the country DRI has till now seized over Rs 6 crore worth of such TV sets.
During the course of investigation, sources said, it was revealed that importers were now using the disassembling-reassembling modus operandi to circumvent such prohibitions and also evade duty. Importers are also making sure to import parts at one port and LED panels at another (mainly by air) to escape customs scrutiny.
In its letter addressed to the Joint Secretary (Customs), CBEC, DRI said, "It is obvious that import of panels and parts in such huge quantity is not meant for replacement market and such imports are taking place for assembly of complete TV sets only. Genuine manufacturers of TV sets in India are compulsorily required to be registered with BIS... It is felt that such registration is mandatory for import of parts also. However, it is felt that there is a need to have explicit provisions/clarification to this effect... to prevent any misuse by trade importers."
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