Cetmas Allegations Factually Incorrect, Counters Cii

The Confederation of Indian Industry (CII) yesterday termed Consumer Electronics & TV Manufacturers Association's (CETMA) statements against it as "factually incorrect".

Consumer Electronics & TV Manufacturers Association on Thursday walked out of CII, accusing the chamber of being an association that no more "works for the welfare of the country and industry."

Consumer Electronics & TV Manufacturers Association's complaint was that the tariff on colour picture tubes (CPT), a key component for the colour television industry, has been kept at peak level of customs duty (35 per cent) and is at par with finished products. And according to Deepak Jhaveri, president, Consumer Electronics & TV Manufacturers Association, CII was not taking up this issue.

 

The customs duty on CPTs is 38.5 per cent, Jhaveri told Business Standard.

However, CII in a statement issued here yesterday said, "It had recommended in the pre-budget proposals of 2000-01 that anomalies in customs duty structure need to be corrected and that an ideal duty structure should be one where the raw materials, components and intermediate products attract a lower duty than finished products."

The apex chamber's statement said, "This is on record on CII's pre-budget memorandum."

Adding that this is exactly CETMA's argument _ that CPTs must carry lower customs duty _ the CII statement says that there has never been a difference of opinion between CETMA and CII.

CETMA had written a letter to CII on April 20, 2000, stating that CII had not taken up the issue of customs duty reduction of CPTs to 25 per cent to correct the anomaly in duty structure. The CII statement also mentioned that "CETMA has stated that 21 inch CPT had been shifted from Open General Licence to Special Import Licence , which had worsened the situation." CII said this statement is "factually incorrect".

"In fact, 21 inch colour picture tube _ which was last year under SIL _ has been shifted to OGL (free category) with effect from April 1, 2000, which is in the best interests of the members of CETMA. "What CETMA had mentioned in their letter was the complete opposite of what was announced in the EXIM policy," the CII statement said.

On CETMA's allegation that CII had not supported the cause of Consumer Electronics & TV Manufacturers Association, CII said that CII's Associations Council (ASCON) provided a platform for Consumer Electronics & TV Manufacturers Association on March 7, 2000 in the Capital "where Deepak Jhaveri, president of Consumer Electronics & TV Manufacturers Association, met the minister of state for fiancee and his senior officials at a meeting organised in CII headquarters and presented his industry's case."