"Mobile companies are estimated to have provided up to Rs 15,000 crore in bank guarantee and surety to government when they import components under new IGCR rule. NEW DELHI: Mobile manufacturers have demanded roll back of new import norms that mandate companies to provide bank guarantees for availing duty concessions.They claimed that due to new import rules this fiscal, funds to the tune of Rs 15,000 crore of mobile companies have been blocked and manufacturing in the country has become very complex. ICA has requested government to restore old rule in this case also for ease of doing business. As it is, the checks of registrations and penalties for misuse are more than sufficient to deter the black sheep. "The result is that the transaction cost and compliance cost, instead of coming down, has actually increased.

Source: Economic Times July 13, 2016 17:26 UTC