India's Trade Barrier Retaliation Against Chinese Goods Raises Concerns Over Impact on Korean Companies

[Image source=Yonhap News]

[Asia Economy Reporter Jin-gyu Lee] As the Indian government conducts a full inspection of Chinese imports in retaliation against trade barriers, Korean companies are also experiencing difficulties in customs clearance procedures for their imports.

According to the local industry in India on the 28th, the customs clearance of Chinese mobile phone parts at New Delhi airport was delayed recently, causing Samsung Electronics to nearly halt the operation of its mobile phone production line at the Noida factory.

Mobile phones are not stocked in large quantities, and due to the delay in customs clearance of mobile phone parts, key components were not supplied for several days. On the 27th, Samsung Electronics-related shipments were finally given priority clearance, avoiding the risk of factory shutdown.

The mobile phone factory in Noida is the world's largest, where Samsung Electronics doubled the size of its existing factory in 2018 and is nurturing it as a next-generation base for global market expansion. The maximum annual production capacity is 120 million units.

Not only at the airport but also at major Indian ports, customs clearance of Korean companies' imports is being delayed. The limited customs authority personnel are overloaded, causing disruptions in the clearance of imports from other countries as well.

At major ports such as Navi Sheva near Mumbai and Pipavav in western Gujarat, the volume of Korean company containers delayed in customs clearance was higher than that of Chinese goods. This caused delays in the clearance of LG Electronics' home appliance-related parts.

The Federation of Korean Industries in India (Korcham India) sent official letters to the Confederation of Indian Industry (CII), the Indian Investment Promotion Agency, and customs authorities at airports and ports, appealing the difficulties faced by Korean companies and conveying industry concerns. Through the letter, Korcham India stated, "If delays in customs clearance cause disruptions in export schedules, the affected companies could suffer serious damages," and requested, "Please support the prompt completion of customs inspections."

This content was produced with the assistance of AI translation services.