F.No.W-43/4/2019-IPHW-MeitY Government of India Ministry of Electronics and Information Technology (IPHW Division) Electronies Niketan 6, CGO Complex, New Delhi. Dated: September 07, 2020 NOTIFICATION Subject: Public Procurement (Preference to Make in India) Order 2017-Notit Electronic Products in furtherance of the Order ing Reference: Department for Promotion of Industry and Internal Trade (DPIIT) OrderNo.P- 45021/2/2017-B.E.-II dated 15.06.2017, as amended by Orders dated 28.05.2018, 29.05.2019 and 04.06.2020 ‘The Government has issued Public Procurement (Preference to Make in India) Order 2017 vide the Department for Promotion of Industry and Internal Trade (DPIIT) OrderNo.P- 45021/2/2017-B.E.-II dated 15.06.2017, as amended by Orders dated 28.05.2018, 29.05.2019 and 04.06.2020, to encourage ‘Make in India’ and promote manufacturing and production of goods and services in India with a view to enhancing income and employment. 2. In furtherance of the Public Procurement (Preference to Make in India) Order 2017 [PPP- MII Order 2017] notified vide reference cited above, and in supersession of the Electronic Product Notification Nos.33(1)/2017-IPHW dated 14.09.2017 and 33(5/2017-IPHW dated 01.08.2018 issued thereunder, the Ministry of Electronics and Information Technology (MeitY) hereby notifies that preference shall be provided by all procuring entities to locally manufactured Electronic Products as per the aforesaid Order, as amended from time to time 3. For the purpose of this notification: a, The definition of Class-I local supplier, Class-II local supplier and Non-local supplier shall be as per paragraph 2 of the DPIIT PPP-MII Order 2017 No.P-45021/2/2017- PP(BE-I) dated 04.06.2020, as amended from time to time. The mechanism for calculation of local content has been prescribed for each notified Electronic Product in this notification, in accordance with paragraph 5 of the DPIIT PPP-MII Order 2017 No.P- 45021/2/2017-PP(BE-II) dated 04.06.2020, as amended from time to time. Page 1 of 30b. Paragraph 3A of the DPIIT PPP-MII Order 2017 No.P-45021/2/2017-PP(BE-II) dated 04.06.2020, as amended from time to time, shall be referred for percentage of Procurement for which preference to domestically manufactured Electronic Products is to be provided (in value terms). 4. Following Electronic Products are not Make in India) Order 2017: ied under the Public Procurement (Preference to 4.1 Desktop Personal Computers (PCs) (A) Definition: For the purpose of this Notification, a Desktop PC shall necessarily consist of a CPU, Memory, Hard disk drive, Keyboard, Mouse and a separate or integrated display unit and should be able to operate independently. (B) Mechanism for calculation of local content: The domestic Bill of Material (BOM) of Desktop PC would be the sum of the cost of main inputs as specified in Column 1 of the following table, provided the inputs individually satisfy the value addition requirement specified in Column 2 of the table: [Main inputs in BOM/stages __for/Value addition/local content required for the| manufacture of Desktop PC input to be classified as domestic BOM 1 2 [Main Board / Motherboard and CPU/GPU | Domestic PCB Assembly* and testing from imported/ domestically manufactured parts and components, including the value of Semiconduetors** and CPU/ GPU** and excluding the value of bare PCB. However, the weightage of total value of CPU shall not exceed 30% of the total BOM of the Desktop PC. Memory Module Domestic PCB Assembly* and testing from imported / domestically manufactured memory chips** and parts / components on imported/ domestically manufactured bare Page 2 of 30,PCB, excluding the value of bare PCB. lHard Disk Drive / Solid State Drive (SSD) Domestic PCB Assembly* and final product assembly and testing from imported / domestically manufactured parts and ‘components, excluding the value of bare PCB. ILCD/LED — Monitor Domestic assembly and testing of LCD / LED Monitor from parts consisting of imported/domestically assembled LCD / LED Panel and Domestic PCB Assembly*, Domestic plastic moulding and Domestic stamping of metal parts, excluding the value of bare PCB. IDVD Drive Domestic assembly and testing from imported / domestically manufactured parts and components. (Cabinet + SMPS Domestically manufactured Cabinet and Domestic PCB Assembly* and the final assembly and testing of SMPS from imported! domestically manufactured parts and components, subject to the condition that the domestically manufactured parts and components used in the assembly of “SMPS” will be minimum 20% (of the total value of parts and components used in the manufacture of “SMPS”). Keyboard/Mouse Domestic PCB Assembly* and the final assembly and testing from imported / domestically manufactured parts and ‘components. [Bare PCB Domestically manufactured from imported / lly manufactured inputs. Page 3 of 30i) Final Assembly / Testing and (i) Domestically assembled/tested and {ii) Design / Development (ii) Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above items shall be reduced from its value in domestic BOM. * It is essential that the Printed Circuit Board Assembly (PCBA) of the CPU(s)/ GPL Processor(s) paris/ components on the bare PCB using the SMT process should mandatorily be done in India, ** This shall be reviewed when the Semiconductor FAB in India is operational. 42 Thin Clients (A) Definition: For the purpose of this Notification, a Thin Client (IC) shall necessarily consist of a CPU, Memory, DOM, Keyboard, Mouse and a separate or integrated display unit and should be able to operate independently. (B) Mechanism for calculation of local content: The domestic Bill of Material (BOM) of a Thin Client would be the sum of the cost of main inputs as specified in Column 1 of the following table, provided the inputs individually satisty the value addition requirement specified in Column 2 of the table: Main inputs in BOM / stages foValue addition / local content required for thi manufacture of Thin Client jinput to be classified as domestic BOM. 1 2 [Main Board / Motherboard and CPU Domestic PCB Assembly* and testing from imported’ domestically manufactured parts and components, including the value of Semiconductors** and CPU** and excluding the value of bare PCB. However, the weightage of total value of CPU shall not Page 4 of 30exceed 30% of the total BOM of the Thin Client [Memory Module/ DOM Domestic PCB Assembly* and testing from imported/ domestically manufactured memory chips** and parts! components on imported’ domestically manufactured bare PCB, excluding the value of bare PCB MPS/ Power Adapter Domestically PCB Assembly* and the final assembly and testing of SMPS/ Power Adapter from imported/ domestically manufactured parts and components, subject to the condition that the domestically manufactured parts and components used in the assembly of “SMPS” will be minimum 20% (of the total value of parts and components used in the manufacture of “SMPS”). ILCD/ LED Monitor Domestic assembly and testing of LCD/ LED Monitor from parts consisting of imported/ domestically assembled LCD/ LED Panel and Domestic PCB Assembly*, Domestic plastic moulding and Domestic stamping of metal parts, excluding the value of bare PCB. {Cabinet Domestically manufactured. IKeyboard/Mouse Domestic PCB Assembly* and the final assembly and testing from imported / domestically manufactured parts and components, [Bare PCB Domestically manufactured from imported/ domestically manufactured inputs. Page § of 30i) Final Assembly/ Testing and (i) Domestically assembled/ tested and ii) Design/ Development (ii) Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above items shall be reduced from its value in domestic BOM. * It is essential that the Printed Circuit Board Assembly (PCBA) of the CPU{(s)/ processor(s)/ parts/ components on the bare PCB using the SMT process should mandatorily be done in India. ** This shall be reviewed when the Semiconductor FAB in India is operational. 4.3 Laptop Personal Computers (PCs) (A) Definition: For the purpose of this Notification, a Laptop PC (commonly known in the market as Laptop! Notebook/ Netbook/ Ultrabook, etc.) shall necessarily consist of a CPU, Memory, Hard disk drive, Keyboard, Touchpad and/ or Trackpoint, an integrated display unit, integrated battery and should be able to operate independently, (B) Mechanism for calculation of local content: The domestic Bill of Material (BOM) of a Laptop PC would be the sum of the cost of main inputs as specified in Column | of the following table, provided the inputs individually satisfy the value addition requirement specified in Column 2 of the table: | Main inputs in BOM/ stages for|Value addition/ local content required for the manufacture of Laptop PC jinput to be classified as domestic BOM Main Board/ Motherboard and CPU/GPU | Domestic PCB Assembly* and testing from imported/ domestically manufactured parts and components, including the value of Semiconductors** and CPU/ GPU** and excluding the value of bare PCB, However, the weightage of total value of CPU shall not Page 6 of 30exceed 35% of the total BOM of the Laptop PC. Power Module Domestic PCB Assembly* and testing from imported’ domestically manufactured parts, and components. Memory Module Domestic PCB Assembly* and testing from imported/ domestically manufactured memory chips** and parts/ components on imported! domestically manufactured bare PCB, excluding the value of bare PCB. Hard Disk Drive/ Solid State Drive (SSD) Domestic PCB Assembly* and final product assembly and testing from _ imported/ domestically manufactured parts and components, excluding the value of bare PCB. [Display Panel (LCD, LED, etc.) Domestic assembly into the Back Cover and Bezel and final testing from imported! domestically assembled Display Panel, LED Back light, Antennae, excluding the value of the Back Cover and Bezel. [DVD Drive Domestic assembly and testing from imported / domestically manufactured parts and components. [Power Adapter Domestic assembly with domestic PCB Assembly* and final testing from imported’ domestically manufactured parts and components, subject to the condition that the value of domestically manufactured parts and ‘components used in the assembly of “Power Adapter” will be minimum40% (of the total value of parts and components used in the manufacture of “Power Adapter”). Page 7 of 30Bare PCB Domestically manufactured from imported/ domestically manufactured inputs. Keyboard/ Touchpad and/ or Trackpoint Domestic assembly and testing from imported’ domestically manufactured parts and components. Battery Domestic assembly and testing from imported/ domestically manufactured parts and components. (Cabinev Chassis of Laptop including bottom | Domestically manufactured through injection ‘over, back cover, Keyboard face bezel and Display face bezel and Hinges moulding/ stamping using imported/ domestic inputs. (i) Final Assembly/ Testing and i) Design’ Development (i) Domestically assembled/ tested and (ii) Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above items shall be reduced from its value in domestic BOM. | * It is essential that the Printed Circuit Board Assembly (PCBA) of the CPU(s)/ GPU/ processor(s)/ parts/ components on the bare PCB using the SMT process should mandatorily be done in India ** This shall be reviewed when the Semiconductor FAB in India is operational. 4.4 Computer Monitors Definition: a) For the purpose of this Notification, a Computer Monitor (commonly known in the market as Monitor) shall necessarily consist of a LCD! LED Display assembly, Logic card, Power Supply Adaptor and Cabinet with Display Ports for connecting it to a Desktop PC or Laptop PC or Tablet PC. Page 8 of 30(B) — Mechanism for calculation of local content: The domestic Bill of Material (BOM) of a Computer Monitor would be the sum of the cost of main inputs as specified in Column 1 of the folloy satisfy the value addition requirement speci 12 table, provided the inputs individually sd in Column 2 of the table: [Main inputs in BOM/ stages Imanufacture of Computer Monitor for |Value addition/ local content required for the} linput to be classified as domestic BOM lLogic Cards/ Micro controller Domestic PCB Assembly* and testing from imported! domestically manufactured parts and components including value of Semiconductors** and excluding the value of bare PCB, |LCD/ LED Panel Domestic integration and testing of imported! domestically assembled LCD/ LED Panel*** into the Monitor Cabinet’ Chassis, excluding the value of the Cabinet! Chassis. However, the weightage of total value of LCD/ LED Panel shall not exceed 35% of the total BOM of the Computer Monitor. ‘ables Domestically manufactured and tested from imported/ domestically manufactured inputs. Power Adapter Domestic assembly with domestic PCB Assembly* and final testing from imported/ domestically manufactured parts and components, subject to the condition that the value of domestically manufactured parts and components used in the assembly of “Power Adapter” will be minimum 40% (of the total value of parts and components used in the manufacture of “Power Adapter”). Page 9 of 30Bare PCB Domestically manufactured from imported/ domestically manufactured inputs. |Cabinet/ Chassis The Monitor Bezel, Back cover, Stand, Base and Chassis wherein the plastic mouldings and the stamping of metal parts is done domestically using imported/ domestic inputs. i) Final Assembly/ Testing and (i) Domestically assembled/ tested and (ii) Design’ Development (ii) Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above items shall be reduced from its value in domestic BOM. * It is essential that the Printed Circuit Board Assembly (PCBA) of the CPU(s/ GPU processor(s)/ parts! components on the bare PCB using the SMT process should mandatorily be done in India. “* This shall be reviewed when the Semiconductor FAB in India is operational. *** This shall be reviewed when LCD/LED Panel manufacturing of Computer Monitors (of each size and type) in India is operational. 4.5 Tablet Personal Computers (PCs) A. Definition: For the purpose of this Notification, a Tablet PC shall necessarily consist of an Integrated Motherboard with on board CPU/Processor, Memory and Power Module; Display Panel (Touch Panel + LCD/LED Module) and integrated battery and should be able to operate independently. (B) Mechanism for calculation of local content: The domestic Bill of Material (BOM) of Tablet PC would be the sum of the cost of main inputs as specified in Column 1 of the following table, provided the inputs individually satisfy the value addition requirement specified in Column 2 of the table: Page 10 of 30manufacture of Tablet PC Main inputs in BOM/ stages for Value addition/ local content required for the, ified as domestic BOM input to be clas Integrated Motherboard with on board CPU: (GPU/ Processor Domestic PCB Assembly* and testing from imported/ domestically manufactured parts and components, including value of Semiconductors** and Processor/CPU/ GPU** and excluding the value of bare PCB. However, the weightage of total value of CPU shall not exceed 35% of the total BOM of the ‘Tablet PC. (Memory and Power Module Domestic PCB Assembly* and testing from imported/ domestically manufactured parts and components, excluding the value of bare PCB. IModule) [Display Panel (Touch Panel + LCD/ LED] Domestic assembly and testing from imported/ domestically manufactured Touch Panel, LCD/ LED Module or combination, subject to the condition that backlight assembly and testing of Display Panel shall be done domestically. Power Adapter (Bare PCB Domestic assembly and testing from imported domestically manufactured parts and components, subject to the condition that the value of domestically manufactured parts and components used in the assembly of “Power Adapter” will be minimum 40% (of the total value of parts and components used in the manufacture of “Power Adapter”). Domestically manufactured from imported/ domestically manufactured inputs. Page 11 of 30Icasing Domestically manufactured Casing. [Battery Domestic assembly and testing from imported’ domestically manufuetured parts and components, ies (Camera, Speaker, WiFi Antenna) Domestic assembly and testing from fete.) imported/ domestically manufactured parts, and components. (i) Final Assembly/ Testing and (i) Domestically assembled/ tested and (i) Design/ Development Gi) Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above items shall be reduced from its value in domestic BOM. * It is essential that the Primed Circuit Board Assembly (PCBA) of the CPU/ GPU/ processor/ parts/ components on the bare PCB using the SMT process should mandatorily be done in India, ** This shall be reviewed when the Semiconductor FAB in India is operational 4.6 Dot Matrix Printers (A) Definition: A Dot Matrix Printer is a type of impact printer that forms dot on paper by a metal pin of diameter 0.2 mm to 0.3 mm which is driven by electromagnet based on solenoid principle and required character matrix is produced by horizontal and vertical resolution of dot matrix, printhead. Dot Matrix Printer can create carbon copies and carbonless copies based on mechanical pressure of pin. (B) Mechanism for calculation of local content: The domestic Bill of Material (BOM) of a Dot Matrix Printer would be the sum of the cost of main inputs specified in Column 1 of the following table, provided the inputs individually satisfy the value addition requirement specified in Column 2 of the table: Page 12 of 30Main inputs in BOM/ stages manufacture of Dot Matrix Printer fo ‘Value addition/ local content required for thd input to be classified as domestic BOM Main PCB Domestic PCB Assembly* and testing from imported / domestically manufactured parts and components, subject to the condition that value of domestically manufactured parts and components used in the assembly of “Main PCB” will be minimum 15% (of the total value of parts and components used in the manufacture of “Main PCB”), excluding the value of bare PCB Bare PCB Domestically manufactured from imported/ | domestically manufactured inputs. SMPS Domestic assembly and testing from imported’ domestically manufactured parts and components, subject to the condition that value of domestically manufactured parts and components used in the assembly of “SMPS” will be minimum 20% (of the total value of parts and components used in the manufacture of “SMPS”), |carriage Motors and Paper Feed Motors Imported as sub-assembly and tested domestically along with main Printer Mechanism. Front Control Panel Domestic assembly and testing from imported/ domestically manufactured parts and components. Home Position/Paper End Sensors Domestic assembly and testing from imported’ domestically manufactured parts Page 13 of 30and components, Main Printer Cabinet and other small plastic] Domestic moulding of Printer Cabinet and ‘components, other parts, Printer Mechanism Assembly Domestic assembly using domestically manufactured Rubber Platens, small rubber parts, sheet metal components, plastic gears and other plastic parts with tured steel shafts and above mentioned sensors and Motors. Print Heads and Interconnecting Cables Imported as sub-assembly and tested domestically along with main Printer Mechanism. (i) Final Assembly/ Testing and (i) Domestically assembled tested and (ii) Design’ Development i) Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above items shall be reduced from its value in domestic BOM. © Iris essential that the Printed Circuit Board Assembly (PCBA) of the parts/ components on the bare PCB using the SMT process should mandatorily be done in India. Smart Cards (A) Definition: For the purpose of this Notification, Smart Card is usually a Credit Card sized plastic Card with an Integrated Circuit (IC) contained inside. The IC contains a microprocessor and memory. ‘Smart Cards can be contact, contactless or dual interface (both contact and contactless). Some of the applications of Smart Card are Identity Card, Banking Card, Health Card, Vehicle Registration Card etc. Page 14 of 30\(B) ‘The domestic Mechanism for calculation of local content for Contact Smart Cards Il of Material (BOM) of a Contact Smart Card would be the sum of the cost of main inputs as specified in Column 1 of the following table, provided the inputs individually satisfy the value addition requirement specified in Column 2 of the table: [Main inputs BOM/ stages _ for} manufacture of Contact Smart Card \Value addition/ local content required for the] linput to be classified as domestic BOM Plastic Card Body Domestic manufacturing including sheet cutting & punching, printing, lamination and testing using imported/ domestically manufactured raw material, parts and components. lic Chip Module Domestic assembly, packaging and testing of IC Chip Module using imported/ domestically manufactured raw material, parts and components*. IMilling and Embedding of IC Chip Modul n Plastic Card Milling and Embedding of IC Chip Module on Plastic Card done domestically. i) Final Assembly and Testing Design/ Development (i) Domestically assembled/tested and (ii) Intellectual Property (IP) resident in India for any of the above items, including fusion of domestically developed Operating System. The value of IP resident in India for any of the above items shall be reduced from its value in domestic BOM. * This shall be reviewed when the Semiconductor FAB in India is operational. Page 25 of 3011(B) Mechanism for calculation of local content for Contactless Smart Cards The domestic Bill of Material (BOM) of Contactless Smart Card would be the sum of the cost of main inputs as specified in Column I of the following table, provided the inputs individually satisfy the value addition requirement specified in Column 2 of the table: Main inputs in BOMMstages for manufacture of Contactless Smart Card Value addition/local content required for the input to be classified as domestic BOM Plastic Card Body {Card inlay (Antenna) Domestic manufacturing including sheet cutting & punching, printing, lamination and testing using imported/ domestically ‘manufactured raw material, parts and components, Domestic assembly and testing from imported! domestically manufactured raw material, parts and components. IIC Chip Module Domestic assembly, packaging and testing of IC Chip Module using imported’ domestically manufactured raw material, parts and components. jing and Embedding of IC Chip Module on] [Plastic Card Milling and Embedding of IC Chip Module on Plastic Card done domestically. inal Assembly and Testing ) Design/ Development (i) Domestically assembled tested and (ii) Intellectual Property (IP) resident in India for any of the above items, including fusion of domestically developed Operating System. The value of IP resident in India for any of the above items shall be reduced from its value in domestic BOM. © This shall he reviewed when the Semiconductor FAB in India is operational, Page 16 of 3048 Products (A) Definition: For the purpose of this Notification, LED products are those whose function is to utilize light produced by LEDs and spanning applications in the areas of: (i) Illumination, (ji) Optical Displays including True LED TVs, (iii) Backlighting, (iv) Signalling & Indication and (v) ‘Transportation. (B) Mechanism for calculation of local content: ‘The domestic Bill of Material (BOM) of LED Products would be the sum of the cost of main inputs as specified in Column 1 of the following table, provided the inputs individually satisfy the value addition requirement specified in Column 2 of the table. However, the weightage of total value of (d) Heat Sink or Thermal Management Solutions, (e) Secondary Optics and (f) ‘System Fixture and Fitting shall not exceed 20% of the total BOM of the LED Product: [Main inputs in BOM/ stages for} Value addition/ local content required for manufacture of LED Products the input to be classified as domestic BOM if 2 LED Emitter Packaging from imported’ domestically fabricated Bare LED Die, subject to the condition that the Bare LED Die shall be domestically fabricated using _imported/ domestically manufactured inputs. ing Electronics Domestic assembly from —_ imported’ domestically manufactured parts and components, subject to the condition that the value of domestically manufactured parts and components (excluding the value of bare PCB) used in the assembly of “Driving Electronics” will be minimum 30% of the total value of parts and components used in the manufacture of “Driving Electronies”. [Bare PCB including MCPCB Domestically manufactured using imported’ domestically manufactured inputs. Page 17 of 30k or Thermal Management Solutions | Domestically manufactured using imported/ domestically manufactured inputs. 'Secondary Optics Domestically manufactured using imported/ domestically manufactured inputs. [System Fixture and Fitting Domestically manufactured. Final Assembly/ Testing Domestically assembled/ tested meeting Indian Standards as notified from time to time 4.9 Biometric Access Control/Authentication Devices (A) Defini For the purpose of this Notification, Biometric Access Control/ Authentication Device shall include inter-atia a Finger Print Sensor/ Iris Sensor, Controller Module and Power supply. It may or may not contain a display unit, Some of the applications of Biometric Access Control/ Authentication Device are Physical access control, Time and Attendance control ete. (B) Mechanism for calculation of local content: The domestic Bill of Material (BOM) of Biometric Access Control’ Authentication Device would be the sum of the cost of main inputs as specified in Column 1 of the following table, provided the inputs individually satisfy the value addition requirement specified in Column 2 of the table: Main inputs in BOM/ stages for | Value addition/ local content required for the manufacture of Biometric Access | input to be classified as domestic BOM Control/ Authentication Device [Finger Print Sensor/ Iris Sensor Domestically manufactured as notified (refer Paragraphs 4.10 and 4.11). Page 18 of 30,Main PCB (Controller Module) Domestic assembly and testing from imported / domestically manufactured parts. and components, excluding the value of bare PCB. [Bare PCB Domestically manufactured from imported / domestically manufactured inputs. Power Supply/ Battery(if separate) Domestic assembly and testing from imported/ domestically manufactured parts and components. [Display Unit Domestic assembly and testing from imported! domestically parts and ‘components, manufactured ptional features such as Camera, Keyboard Domestic assembly and testing from imported/ IRFID, Smart Card Reader, GPRS Module] domestically manufactured parts. and |Wi-Fi, Blue Tooth ete. components. [Plastic Housing Domestically manufactured from imported/ domestically manufactured inputs. USB Cables Domestically manufactured from imported/ domestically manufactured inputs. (i) Final Assembly and Testing Design/ Development (i) Domestically assembled tested and (ii) Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above items shall be reduced from its value in domestic BOM. Page 19 of 304.10 Biometric Finger Print Sensors (A) Definition: For the purpose of this Notification, Biometric Finger Print Sensor consists of a Controller Module, CMOS Sensor and Optics. The applications of the Biometric Finger Print Sensor are personal identification and verification, etc. (B) — Mechanism for calculation of local content: The domestic Bill of Material (BOM) of Biometric Finger Print Sensor would be the sum of the cost of main inputs as specified in Column | of the following table, provided the inputs individually satisfy the value addition requirement specified in Column 2 of the table: iain inputs BOMstages _forfValue addition/local required for the input to bel ‘manufacture of Biometric Finger Prinfelassified as domestic BOM Sensor Main PCB (Controller Module) Domestic assembly and testing using imported / domestically manufactured parts and components, excluding the value of bare PCB. jOpties Domestically manufactured from imported / domestically manufactured inputs. oMOS Sensor Domestic assembly, packaging and testing of CMOS Sensor using imported/ domestically manufactured inputs” [Bare PCB Domestically manufactured from domestically manufactured inputs. ported Plastic Housing Domestically manufactured from imported / domestically manufactured inputs. USB Cables Domestically manufactured from imported Page 20 of 30,domestically manufactured inputs (i) Final Assembly and Testing (i) Domestically assembled/ tested and (ii) Design/ Development (ii) Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above items shall be reduced from its value in domestic BOM. * This shall be reviewed when the Semiconductor FAB in India is operational. 4.11 Biometric Iris Sensors (A) Definition: For the purpose of this Notification, Biometric Iris Sensor consists of a Controller Module, CMOS Sensor and Optics. The applications of the Biometric Iris Sensor are personal identification and verification, etc. (B) Mechanism for calculation of local content: ‘The domestic Bill of Material (BOM) of Biometric Iris Sensor would be the sum of the cost of main inputs as specified in Column 1 of the following table, provided the inputs individually satisfy the value addition requirement specified in Column 2 of the table: (Main inputs in BOM/stages forjValue addition/local content required for the| lmanufacture of Biometric Iris Sensor input to be classified as domestic BOM 1 2 Main PCB (Controller Module) Domestic assembly and testing using imported / domestically manufactured parts and components except value of bare PCB. lOptics Domestically manufactured from imported/ Page 21 of 30,domestically manufactured inputs CMOS Sensor Domestic assembly, packaging and testing of CMOS Sensor using imported/ domestically manufactured inputs” [Bare PCB Domestically manufactured from imported/ domestically manufactured inputs. ¢ Housing, Domestically manufactured from imported! domestically manufactured inputs. lUSB Cables Domestically manufactured from _imported/ domestically manufactured inputs. (i) Final Assembly and Testing (i) Domestically assembled/ tested and Design/ Development (ii) Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above items shall be reduced from its valuc in domestic BOM. “This shall be reviewed when the Semiconductor Fab in India is operational. 4.12 et (A) Definition: For the purpose of this Notification, a Server shall necessarily consist of a Mother Board, CPU, Memory (RAM), Hard Disk Drive (HDDy/ Solid State Storage Drive (SSD), Power Supply Unit (SMPS), Chassis, Connecting Cables and Firmware & OS. (B) Mechanism for calculation of local content: The domestic Bill of Material (BOM) of a Server would be the sum of the cost of main inputs as specified in Column 1 of the following table, provided the inputs individually satisfy the value addition requirement specified in Column 2 of the table: Page 22 of 30manufacture of Server Main inputs in BOM/ stages forfValue adklition focal content required for the linput to be classified as domestic BOM [Server Board/ Mother Board and CPU(s)/ GPUs) Domestic PCB Assembly* and testing from imported’ domestically manufactured parts and components, including the value of Semiconductors** and CPU(s)/ GPU(s)** and excluding the value of bare PCB. lemory Module Domestic PCB Assembly* and testing from ported/ domestically manufactured memory chips** and parts/ components on imported! SSD) domestically manufactured bare PCB, excluding the value of bare PCB. IHard Disk Drive/ Solid State Storage Drive] Domestic assembly and testing from imported’ domestically manufactured parts and components. {Cabinet + SMPS. Domestically manufactured Cabinet and domestic assembly and testing of SMPS from imported / domestically manufactured parts and components, subject to the condition that value of domestically manufactured parts and ‘components used in the assembly of “SMPS” Will be minimum 25% (of the total value of parts and components used in the manufacture of “SMPS"), [Bare PCB Domestically manufactured from imported/ domestically manufactured inputs. |Accessories (Power Cables, Connectors, etc.) Domestic assembly and testing from imported/ domestically manufactured parts and components, Page 23 of 30{’) Final Assembly and Testing Design and Development (i) Domestically assembled/ tested and (ii) Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above items shall be reduced from its value in the domestic BOM. * It is essential that the Printed Circuit Board Assembly (PCBA) of the CPU(s)/ GPU(s) processor(s), paris! components on the bare PCB using the SMT process should mandatorily be done in India “* This shall be reviewed when the Semiconductor FAB in India is operational. 4.13 Cellular Mobile Phones (A) Definition: For the purpose of this Notification, a Cellular Mobile Phone (Feature Phone or Smart Phone) shall necess ily consist of a Main Printed Circuit Board (PCB), Battery Pack, Display Unit, Key Pad/ Touch Panel, Charger/ Adapter, Microphone & Receiver, Vibrator Motor) Ringer and Mechanics. (B) Mechanism for calculation of local content: The domestic BOM of Cellular Mobile Phones would be the sum of the cost of main inputs as specified in Column | of the following table, provided the inputs individually satisfy the value addition requirement specified in Column 2 of the table: [Main inputs in BOM/stages manufacture of Cellular Mobile Phone for Value addition/ local content required for the input to be classified as domestic BOM Main PCB* Domestic assembly and testing from imported! domestically manufactured parts and components including Processor and Semiconductor** BOM (ic the Semiconductor Chips and Modules on Main Page 24 of 30,PCB), and excluding value of bare PCB. [Bare PCB Domestically manufactured from imported/ domestically manufactured inputs. [Battery Pack Domestic assembly and testing of imported’ domestically manufactured inputs. \Charger/ Adapter Domestic assembly and testing from imported/ domestically manufactured inputs. |Wired Headset Domestic assembly and testing from imported/ domestically manufactured inputs. IMechanics*** Domestic assembly and testing from imported’ domestically manufactured inputs. [Die Cut Pans*** Domestic assembly and testing from imported/ domestically manufactured inputs. [Microphone and Receiver Domestic assembly and testing from imported/ domestically manufactured inputs. Key Pad Domestic assembly and testing from imported/ domestically manufactured inputs lusB Cable Domestic assembly and testing from imported/ domestically manufactured inputs. Camera Module Domestic assembly and testing from imported/ domestically manufactured inputs. [Connectors Domestic assembly and testing from imported/ domestically manufactured inputs. [Display Unit Domestic assembly and testing from. Page 25 of 30imported) domestically manufactured inputs, Touch Panel/ Cover Glass Assembly Domestic assembly and testing from imported/ domestically manufactured inputs. Vibrator Motor/ Ringer Domestic assembly and testing from imported’ domestically manufactured inputs. i) Final Assembly and Testing (i) Domestically assembled! tested and ) Design and Development (i) Intellectual Property (IP) resident in India for any of the above items. The value of IP resident in India for any of the above items shall be reduced from its value in the domestic BOM. * Ir is essential that the Printed Circuit Board Assembly (PCBA) of the processor/ on the bare PCB using the SM process should mandatorily be done in India. ** This shall be reviewed when the Semiconductor FAB in India is operational ***Refer Annexure 5. The Notification comes into effect immediately. This Notification shall remain valid till the revised Notification is issued 6. No Electronic Product Notification under the Public Procurement (Preference to Make in India) Order 2017 shall have retrospective effect. 7. Purchase Preference shall be provided as per the provisions cited in the Public Procurement (Preference to Make in India) Order 2017 dated 04.06.2020 for the procurement of aforesaid electronics products. 8. The notification would also be applicable to all Central Schemes (CS)/ Central Sector Schemes (CSS) for the procurement of electronic products made by States and local bodies, if project or scheme is fully or partially funded by Government of India. 9. Procedure for calculating local content/ domestic value addition 9.1 of Material sourced from domestic manufacturers (Dom-BOM) may be calculated based on one of the followings depending on data available. Each of these calculations should provide consistent result. Page 26 of 30/ / a. Sum of the costs of all inputs which go into the product (including duties and taxes levied on procurement of inputs except those for which credit/ set-off can be taken) and which have not been imported directly or through a domestic trader or an intermediary. b. Ex-Factory Price of product minus profit after tax minus sum of imported Bill of Material used (directly or indirectly) as inputs in producing the product (including duties and taxes levied on procurement of inputs except those for which credit/ set-off can be taken) minus warranty costs. ¢. Market price minus post-production freight, insurance and other handling costs minus profit afier tax minus warranty costs minus sum of Imported Bill of Material used as inputs in producing the product (including duties and taxes levied on procurement of inputs except those for which credit / set-off can be taken) minus sales and marketing expenses. 9,2 Total Bill of Material (Total-BOM) may be calculated based on one of the following depending on data available, Fach of these calculations should provide consistent result. a. Sum of the costs of all inputs which go into the product (including duties and taxes levied on procurement of inputs except those for which credit / set-off can be taken). b. _Ex-Factory Price of product minus profit after tax, minus warranty costs. c. Market price minus post-production freight, insurance and other handling costs minus profit after tax, minus warranty costs minus sales and marketing expenses. 9.3 The percentage of domestic value-addition may be calculated based on information furnished as per the following formula: Dam—HOM Percentage of local content/ domestic value-addition = =~ x 100 It is recommended that each agency assessing should calculate the domestic local content/ value- addition using at least two of the above formulae so as to validate the assessments in this regard and ensure that the domestic value addition that is claimed is consistent. 10. Verification of local content/ Domestic Value Addition a, The local supplier at the time of tender, bidding or solicitation shall provide self-certification that the item offered meets the minimum local content and shall give details of the location(s) at which the local value addition is made. b. In cases of procurement for a value in excess of Rs. 10 crore, the local supplier shall provide a cettificate from the statutory auditor or cost auditor of the company (in the case of companies) or from a practicing cost accountant or practicing chartered accountant (in respect of suppliers other than companies) gi ing the percentage of local content. Page 27 of 30c. In case a complaint is received by the procuring ageney or the concerned Ministry/Department against the claim of a bidder regarding local content/ domestic value addition in an electronic product, the same shall be referred to STQC. d. Any complaint referred to STQC shall be iisposed of within 4 weeks. The bidder shall be required to furnish the necessary documentation in support of the domestic value addition claimed in an electronic product to STQC. If no information is furnished by the bidder, such laboratories may take further necessary action, to establish the bonafides of the claim, eA complaint fee of Rs.2 Lakh or 1% of the value of the domestically manufactured electronic products being procured (subject to @ maximum of Rs. 5 Lakh), whichever is higher, to be paid by Demand Draft to be deposited with STQC. In case, the complaint is found to be incorrect. the complaint fee shall be forfeited. In case, the complaint is upheld and found to be substantially correct, deposited fee of the complainant would be refunded jout any interest, f. False declarations will be in breach of the Code of Integrity under Rule 175(1)(i)(h) of the General Financial Rules for which a bidder or its successors can be debarred for up to two years as per Rule 151 (iii) of the General Financial Rules along with such other actions as may be permissible under law 11. MeitY shall be the Nodal Ministry to monitor the implementation of the Electronic Products Notification, 12. In case of a question whether an item being procured is an electronic product to be covered under the Public Procurement (Preference to Make in India) Order 2017, the matter would be referred to the Ministry of Electronics and Information Technology for clarification, Secvnceths Cass (Saurabh Gaur) Joint Secretary to Government of India Tel.: 24363071 New Delhi, Dated: 07.09.2020 Copy to: 1. All Ministries/ Departments of Government of India Cabinet Secretariat 3, PMO. 4, NITI Aayog Page 28 of 30Joint Secretary(DPIIT), Member-Convener of Standing Committee of Public Procurement Order 2017 . Comptroller and Auditor General of India . SS&FA, Ministry of Electronics and Information Technology Director General, Standardisation Testing and Quality Certification (STQC) Internal Distribution Sovrelt Cam (Saurabh Gaur) Joint Secretary to Government of India Tel.: 24363071 Page 29 of 30Annexure Indicative List of Mechanics and Die Cut Parts A. Mechanics Battery Cover (HS 39209999) Front Cover (HS 39209999) Front Cover (With Zinc Casting) (HS 39209999) Middle Cover (HS 39209999) GSM Antenna’ Antenna of any technology (HS 39209999) Side Key (HS 85389000) Main Lens (HS 39209999) Camera Lens (HS 39209999) Screw (HS 73181500) Mic Rubber Case (HS 40169990) ‘Sensor Rubber Case/ Scaling Gasket including sealing gaskets! cases from Rubbers like SBR, EPDM, CR, CS, Silicone and all other individual rubbers or combination/ combinations of rubbers (HS 40 169990) 11.1 PU Case/ Sealing Gasket (HS 39269091) - Other articles of Polyurethane foam like sealing gaskets/ cases. 11.2. Sealing Gaskets) Cases from PE, PP, EPS, PC and all other individual polymers or combination’ combinations of polymers (HS 39269099) 12. SIM Socket/ Other Mechanical items (Metal) (HS 73269099) 13. SIM Socket/ Other Mechanical items (Plastic) (HS 39269099) 14. Back Cover (HS 39209999) cee en aweune =s B. Die Cut Parts Conductive Cloth (HS 39269099) Heat Dissipation Sticker Battery Cover (HS 39199090) Sticker-Battery Slot (HS 39199090) Protective Film for Main Lens (HS 39199090) Mylar for LCD FPC (HS 39199090) LCD Conductive Foam (HS 39269099) Film-Front Flash (HS 39199090) LCD Foam (HS 39269099) BT Foam (HS 39269099) een ayee Page 30 of 30