Good news for the Made In India campaign as momentum and engagement grows
The Central Board of Excise and Customs (CBEC) brought some good news for local manufacturers of mobile phones, laptops, which will also give a boost to Prime Minister Narendra Modi's 'Make in India' initiative.
The apex indirect taxes body, CBEC, has said that only those manufacturing goods in India can enjoy a concessional 2% duty regime without availing of tax credit on inputs, not importers who will have to pay 12.5% countervailing duty.
Apart from domestic mobile phones, laptops and tablets manufacturers, coal producers will also gain from this directive. Earlier, this advantage to local manufacturers was taken away by the Supreme Court judgement. In a case related to SRF Ltd, the top court had directed that importers could avail of lower duty regime if they did not take tax credits.
Reportedly, this had risked plans of foreign investors such as Foxconn Technology Group and Softbank to set up manufacturing facilities in the country and had also placed at a disadvantage the existing plants of Samsung Electronics Co. and Huawei Technologies Co.
"In case of mobile phones, appropriate duty would need to be paid on inputs to be able to avail the benefit of concessional rates on final products. Accordingly, assembly of parts alone may not be a beneficial proposition," Bipin Sapra, a partner at EY, told Economic Times.
The Modi-led India government has been trying to boost domestic manufacture of electronic goods in view of large domestic market being serviced mainly by imports.
The financial daily reported that India shipped in almost $37 billion worth of telecom instruments, computer hardware and peripherals, electronic instruments and components, and consumer electronics goods in FY15, a 14% rise over the previous year.
A ET news report read t hat mobile phones attract excise duty of 1% and a 1% National Calamity and Contingency Duty if no central value added tax (CENVAT) credit on inputs used is claimed, while a 12.5% countervailing duty is levied on imported devices.
"The government has reinforced its commitment to promoting manufacturing in India by restoring the duty incentives to manufacturers of certain commodities," Sapra told ET.
Ultium Cells LLC/Li-Cycle: Sustainable Battery Manufacturing
Ultium Cells LLC - a joint venture between General Motors and LG Energy Solutions - has announced its latest collaboration with Li-Cycle. Joining forces the two have set ambitions to expand recycling in North America, recycling up to 100% of the scrap materials in battery cell manufacturing
What is Ultium Cells LLC?
Announcing their partnership in December 2019, General Motors (GM) and LG Energy Solutions established Ultium Cells LLC with a mission to “ensure excellence of Battery Cell Manufacturing through implementation of best practices from each company to contribute [to the] expansion of a Zero Emission propulsion on a global scale.”
Who is Li-Cycle?
Founded in 2016, Li-Cycle leverages innovative solutions to address emerging and urgent challenges around the world.
As the use of Lithium-ion rechargeable batteries in automotive, industrial energy storage, and consumer electronic applications rises, Li-Cycle believes that “the world needs improved technology and supply chain innovations to better recycle these batteries, while also meeting the rapidly growing demand for critical and scarce battery-grade materials.”
Why are Ultium Cells LLC and Li-Cycle join forces?
By joining forces to expand the recycling of scrap materials in battery cell manufacturing in North America, the new recycling process will allow Ultium Cells LLC to recycle cobalt, nickel, lithium, graphite, copper, manganese and aluminum.
“95% of these materials can be used in the production of new batteries or for adjacent industries,” says GM, who explains that the new hydrometallurgical process emits 30% less greenhouse gases (GHGs) than traditional processes, minimising the environmental impact. Use of this process will begin later in the year (2021).
"Our combined efforts with Ultium Cells will be instrumental in redirecting battery manufacturing scrap from landfills and returning a substantial amount of valuable battery-grade materials back into the battery supply chain. This partnership is a critical step forward in advancing our proven lithium-ion resource recovery technology as a more sustainable alternative to mining, " said Ajay Kochhar, President, CEO and co-founder of Li-Cycle.
"GM's zero-waste initiative aims to divert more than 90% of its manufacturing waste from landfills and incineration globally by 2025. Now, we're going to work closely with Ultium Cells and Li-Cycle to help the industry get even better use out of the materials,” added Ken Morris, Vice President of Electric and Autonomous Vehicles, GM.
Since 2013, GM has recycled or reused 100% of the battery packs it has received from customers, with most current GM EVs repaired with refurbished packs.
"We strive to make more with less waste and energy expended. This is a crucial step in improving the sustainability of our components and manufacturing processes,” concluded Thomas Gallagher, Chief Operating Officer, Ultium Cells LLC.