If you buy a mobile phone cover, you may see a slight change in prices in the coming days. The government is preparing to impose an anti-dumping duty on cheap mobile covers imported from China. The Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce, has recommended imposing the duty on mobile covers imported from China for five years.
According to the recommendation, a duty of $72 will be imposed on every 1,000 covers, which translates to an additional charge of around Rs 7 per cover.
Why Have Chinese Mobile Covers Become So Cheap?
The matter began after Indian mobile cover manufacturers complained that covers were being imported from China at very low prices. They said this was making it difficult for Indian companies to compete in the market.
During its investigation, the DGTR found that imports of mobile covers from China had increased sharply within a few years.
In 2021-22, around 10 lakh mobile covers were imported into India from China. By 2023-24, the figure had risen to around 765 lakh, meaning imports from China increased several-fold in just two to three years.
Not only did the volume of imports increase, but prices also fell significantly. In 2021-22, the average price of a mobile cover imported from China was around Rs 18. During the period under investigation, 2024-25, the price had fallen to just Rs 2.14.
How Did This Affect Indian Companies?
The influx of cheaper Chinese covers increased pressure on Indian manufacturers. According to the report, the market share of Indian companies fell from 98 per cent to around 49 per cent, while the share of Chinese covers rose from 2 per cent to around 51 per cent.
There are more than 40 units manufacturing mobile covers in India. The DGTR investigation also found that around 10 of these units had shut down. In other words, while demand for mobile covers was rising, Indian manufacturers were unable to benefit from it.
Several companies were operating at only 27 to 30 per cent of their production capacity, while their unsold inventory also continued to increase.
Will Every Chinese Mobile Cover Attract The Duty?
The DGTR has excluded two Chinese companies from the proposed duty after finding that they were operating in accordance with the applicable rules.
Premium mobile covers made from aramid fibre will also be excluded from the duty as such covers are not manufactured in India.
Meanwhile, mobile cover manufacturer Spigen had sought an exemption for certain transparent covers, but the DGTR did not accept the request.
Will Mobile Covers Become More Expensive?
The biggest question is how much the proposed duty will affect consumers. Under the proposal, the duty would amount to around Rs 7 per cover. However, this does not mean that every mobile cover in the market will become directly Rs 7 more expensive.
According to estimates by the DGTR and the industry, the impact on retail prices is expected to remain below 1 per cent. Therefore, consumers may not see a significant increase in the prices of mobile covers.
Duty Has Not Been Imposed Yet
It is important to note that the DGTR has only recommended imposing the duty. It has not been implemented yet. The Finance Ministry will now take a decision on the recommendation. The duty will come into effect only if the ministry approves it and issues a notification.
This means that Chinese mobile covers have not become immediately more expensive. However, if the government accepts the recommendation, an additional duty could be imposed on cheap mobile covers imported from China in the coming period.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
