If you buy a mobile cover, you may see some changes in the coming time. The government may impose additional charges on cheap mobile covers coming from China to India. DGTR i.e. Directorate General of Trade Remedies under Ministry of Commerce has recommended imposition of duty for 5 years on mobile covers coming from China. Under this, it is said that a duty of $72 will be levied on every 1,000 covers. It means an additional charge of around Rs 7 per cover.

How did Chinese mobile covers get so cheap?

The case started with a complaint by companies manufacturing mobile covers in India. Companies said mobile covers are coming to India from China at very low prices. Due to this it is becoming difficult for them to maintain their position in the market.

After this, the DGTR started an investigation into the matter, after which it was revealed that the number of mobile covers coming from China to India has been increasing rapidly in the last few years. Let us tell you that in the financial year 2021-22, about 10 lakh mobile covers came to India from China. By 2023-24, this number has increased to about 765 lakh. This meant that the number of covers coming from China increased manifold within a few years.

Not only this, not only the number of covers has increased but the price has also come down a lot. In 2021-22, the average cost of covers from China was around Rs 18. At the same time, it will fall to around 2 rupees 14 paise in 2024-25.

What was the impact on Indian companies?

The arrival of cheap mobile covers from China also affected cover manufacturing companies in India. According to media reports, the market share of Indian companies has declined from 98 percent to about 49 percent. On the other hand, the share of covers coming from China has increased from 2 percent to about 51 percent.

Let us tell you that there are more than 40 mobile cover manufacturing units in India. DGTR’s investigation has also revealed that around 10 units have been closed. In which many companies could not utilize the full capacity of their factories. Some companies were operating at only 27 to 30 percent capacity. Along with this, the goods sold without them have also increased.

Will duty be imposed on every Chinese mobile cover?

The answer to this question is no. DGTR has said that two Chinese companies should be kept out of this duty. During the investigation, it was found that the business of these companies was being conducted as per the rules. Apart from this, the duty will not be applicable on expensive mobile covers made of aramid fiber. This is because such covers are not made in India. Mobile cover manufacturing company Spigen also sought to keep certain types of transparent covers out of duty. However, DGTR did not accept this demand.

Will the mobile cover be expensive?

Now the biggest question after this is if the duty is imposed, will it affect your pocket? Let us tell you that, as per the proposal, the duty on one cover may be around 7 rupees. But it does not mean that every mobile cover in the market will directly become expensive by Rs 7. As per DGTR and industry estimates, the impact of this duty may be less than 1 per cent on the final cost of cover. This means that even if the duty is imposed, the price of mobile cover will not change much.

The duty has not been implemented yet

It is important to understand that DGTR has only recommended imposition of duty. This duty has not yet been enforced. Now the finance ministry has to take a decision in this matter. The duty will be applicable only if the Ministry approves and its notification is issued.

This means that the current mobile covers from China have not become expensive immediately. But if the government approves this recommendation, additional duty may be imposed on some cheap mobile covers coming from China in the near future.

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