India rejects Apple’s offer to sell reused iPhones

The Dollar Business Bureau 

After the Ministry of Finance rejected the waiver of compulsory local sourcing regulations for Apple Inc to establish single-brand outlets in India, the Ministry of Commerce on Monday said it will put forward the iPhone maker’s case again and a decision based on the consensus will be taken soon. 

The Commerce Minister Nirmala Sitharaman, at the same time, said the ministry is not in the favour of the phone maker’s proposal to import refurbished iPhones and sell in the country. 

She also said that the ministry has made it clear that the 30 percent domestic sourcing requirements can be put aside only for high-end technology products. 

While briefing the journalists, Sitharaman said, “Now the Finance Ministry has already taken a different position, we will certainly talk to them. I want more clarity on it. We will talk and make sure to come out with some decision soon.” 

Clearing her stand on Apple Inc’s proposal, she said that the Commerce Ministry is not asking them to change their manufacturing rules, but making sure that the rules are clear for single-brand retailing.

"This is one of the issues on which our ministry has genuine concerns. Therefore, I want a consensus to be reached within the government,” the Minister added.

The Finance Ministry is not in favour of easing the 30 percent local sourcing rules, as the iPhone maker is seeking pre-conditions for establishing single-brand retail outlets in India. 

The US-based technology major has sought relaxation from the government on the basis that it manufactures state-of-the-art and advanced technology products for which sourcing from domestic market has not been clearly specified.