IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 12 Mar 2013 | Removal date: open ended
Still in force

Public procurement localisation

 On 12 March 2013, the Ministry of Communications and Information Technology added Smart Cards to the list of manufactured electronic goods where a preference is given to domestic products in procurement due to security considerations by ministries.
 
The Notification specifies the minimum percentage of required domestic procurement, the percentage of the total value added that qualifies the product as domestically manfuactured and the inputs and processes that will be considered for assessing whether the product is classified as domestically manufactured.

The percentage of procurement for domestically manfuactured Contact and Contactless Smart Cards is 50%, while the percentage of total value added required in the Bills of Material (BOM) for the Smart Cards to be classified as domestically manufactured are:

  • For Contact Smart Cards, 30% of BOM in year 1, 45% in year 2 and 65% from year 3.
  • For Contactless Smart Cards, 40% in year 1, 50% in year 2, and 70% from year 3.

The Inputs in the BOM considered for the above would include the Card Body, integrated circuit chip, milling and embedding of the chip on the Card, assembly, testing and development.
 
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

471 Electronic valves & tubes; electronic components; parts
8542 Electronic integrated circuits.
854231 Processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits
854232 Memories
854233 Amplifiers
854239 Other
854290 Parts
475 Disks, tapes, storage devices & other media, not recorded
" class="default-popupover-item"> 8523 Discs, tapes, solidstate nonvolatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter
852341 Unrecorded
852351 Solidstate nonvolatile storage devices
852359 Other
476 Disks, tapes & other physical media, recorded
" class="default-popupover-item"> 8523 Discs, tapes, solidstate nonvolatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter
852329 Other
852349 Other
852380 Other
479 Cards with magnetic strips or chip
" class="default-popupover-item"> 8523 Discs, tapes, solidstate nonvolatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter
852321 Cards incorporating a magnetic stripe
852352 ìSmart cardsî

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