Apple’s supply chain production in India disrupted by customs clearance delays

Employees at Foxconn’s plants in Tamil Nadu and Andhra Pradesh, India, had little work to do this week as shipments of electronics between India and China were delayed. A source said workers were just staying in dorms because there was no job to do, Reuters reported.

Apple's supply chain production in India disrupted by customs clearance delays

Unnamed sources said the goods are now slowly clearing customs. Officials at India’s customs authorities said the delay was due to temporary increases in inspections, which are expected to ease soon.

Apple isn’t the only company to experience production delays due to additional inspections. Dell has about 130 shipments of cards in Indian ports, delaying the production of servers and desktop computers.

In February, some shipments from China to India were intercepted by Indian customs, although officials said the specific reason was that customs clearance required documents from port offices, which were closed because of the coronavirus pandemic. However, India’s Electronics and Mobile Industries Group told Reuters that regular importers usually automatically clear customs.

The dispute comes as Apple prepares to assemble its new iPhone SE in India in a bid to avoid a 20 per cent import tax on Chinese goods imported into the US.