Finance ministry looks to curb smuggling of top-end mobile phones

FinMin considers proposal to reduce basic Customs duty on phones with a cost, insurance and freight value of over Rs 35,000

The Finance Ministry is looking at a reworked proposal from mobile device makers on how to fight the rampant and growing smuggling of very high end phones.

The proposal suggests reducing the basic customs duty (BCD) on phones which have a CIF (cost, insurance and freight or price at landing in the port) value of over Rs 35,000-Rs 40,000.

The retail value of these phones is upwards of Rs 70,000. They constitute less than 5 per cent of the country’s smartphone sales.

An earlier proposal by the Indian Cellular and Electronics Association (ICEA) last December which suggested a cap of