Question : SALE OF MOBILE HAND SETS IN GREY MARKET

(a) whether 70 per cent of the mobile hand sets are being sold through the grey market;

(b) if so, whether these sets are being smuggled in large quantity and sold in the local market at rates much lower than the domestic market rates;

(c) whether the Indian Cellular Association (ICA) have urge upon the Government to take appropriate measure to curb the grey market by rationalising the duty on import of mobile hand sets and to check the loss in revenue to the Government which is expected to be Rs. 5390 crore by the year 2006; and

(d) if so, the concrete steps taken by the Government in this regard?

MINISTER OF STATE (REVENUE) IN THE MINISTRY OF FINANCE & COMPANY AFFAIRS(SHRI GINGEE N. RAMACHANDRAN)

(a) & (b): Smuggling being a clandestine activity, it cannot be said with certainty that large quantity of mobile hand sets is being smuggled into the country. Since the duty liability on mobile hand sets that are smuggled into the country is not discharged, their prices may be lower than mobile hand sets sold legally, wherein all taxes are paid. However, details of seizures of mobile hand sets made during last 2 years & current year (upto January, 2003) is as under.

Year	No. of cases booked	Value of seizure (Rs. in Crores)
2000-2001	2946	13.3052
2001-2002	2457	15.7496
2002-2003	946	13.8430

(Upto January,
2003)