Industry optimistic about low, if not zero, tariff on electronics exports

The sobering news is that Cupertino-based Apple Inc, which assembles the iPhone in India, has already ensured that bulk of its semiconductor requirement came from non-Chinese sources

The imposition of specific tariff on electronic manufacturing — which, for India, primarily means mobile devices, apart from servers, laptops, and personal computers (PCs) — is pegged on one key clause under Section 232 investigation by the US commerce department.

 

Section 232 of the Trade Expansion Act of 1962, administered by the US Department of Commerce, allows the President to restrict imports that threaten national security. The commerce department investigates potential threats, and if a threat is found, the President can impose tariffs or other trade restrictions.

 

Clause 4, which is relevant for India, says that the commerce department will