- //Update 1(04/07/2020 10:39 am) Foxconn says that customs issues have been fixed
With Indo-China tensions continuing to rise, businesses are starting to feel the heat. After 59 popular Chinese apps were banned by New Delhi this week, reports suggest that India’s additional scrutiny of imports from China is now disrupting operations of a number of companies.
Foxconn reportedly is one such firm that is affected by the current situation. Other companies are also facing delays as customs officials are refusing to clear imports from China without additional inspection. However, according to sources quoted by Reuters, there’s no formal order from the government to that effect. The report claims that US tech giants, Apple and Dell, are among the worst affected. Xiaomi and several other companies have been badly affected as well.
According to the report, more than 150 containers were reportedly held up at the Chennai port, although, some of those shipments are now being cleared by the Customs. According to one of the sources quoted by Reuters: “Foxconn was in a very bad state … Lots of workers stayed at the dormitory because there was no work”.
Neither the affected companies nor the government responded to Reuters’ request for a comment. However, one finance ministry official claimed the the additional inspection measures were temporary and will ease soon. “We cannot keep checking 100 percent of shipments forever … Shipments of non-Chinese companies being impacted will be cleared on priority”, they said.
The news comes at a time when manufacturing activities in the country have just started picking up following the coronavirus lockdown. Prominent industry bodies have expressed concerns that further disruptions to placate anti-China sentiments will hurt the Indian economy even further.
Update 1 (04/07/2020 10:39 am)
Foxconn, one of Apple’s suppliers in India, has issued a statement saying that the problems with customs clearances for Chinese imports have been solved.
The company said in a stock filing that issues have been resolved and it has complied with all local regulations.