Ashwini Vaishnaw said “This rationalization of custom duties brings
much needed certainty and clarity for the industry and in customs
processes. I thank Hon’ble PM & FM for this step towards strengthening
the mobile phone manufacturing ecosystem”
Customs duty charged on residuary category/ others applicable to
goods for use in manufacture of mobile phones has been reduced from
15% to 10%
Several items used in manufacture of mobile phones which were earlier
considered “Others” and charged at 15% will now be charged at 10%.
Customs duty on inputs or parts for use in manufacture of goods
specifically listed in these notifications has been reduced to Zero
New Delhi, 31st Jan 2024
Union Government has introduced changes in 3 categories through a notification in
custom duties. Customs duty charged on residuary category/ others applicable to
goods for use in manufacture of mobile phones has been reduced from 15% to 10%.
Several items used in manufacture of mobile phones which were earlier considered
“Others” and charged at 15% will now be charged at 10%. Examples: Battery cover,
Front cover, Middle cover, Main lens, Back cover, GSM antenna, PU case, Sealing
gasket, SIM socket, Screw, Other mechanical items of plastics and metal.
Changes done:
●
Changes introduced by these notifications fall in 3 categories:
●
Customs duty charged on residuary category/ others applicable to
goods for use in manufacture of mobile phones has been reduced from
15% to 10%
●
Several items used in manufacture of mobile phones which were earlier
considered “Others” and charged at 15% will now be charged at
10%. Examples:
▪ Battery cover
▪ Front cover
▪ Middle cover
▪ Main lens
▪ Back cover
▪ GSM antenna
▪ PU case
▪ Sealing gasket
▪ SIM socket
▪ Screw
▪ Other mechanical items of plastics and metal
Customs duty on inputs or parts for use in manufacture of goods specifically
listed in these notifications has been reduced to NIL.
The mobile industry has overwhelmingly welcomed the Government’s move
to reduce custom duties for the industry. The amendment is an important
policy change toward export-led growth, ensuring policy consistency, and
addressing competitiveness in manufacturing, which is a crucial victory for the
mobile phone manufacturing industry in India.
Pankaj Mohindroo, Chairman, ICEA, said,” This is a critical and welcome
policy intervention by the Government towards making mobile manufacturing
competitive in India. Building scale, riding on low input tariffs is key to
transforming India into a global hub for Electronics Manufacturing and Exports.
The mobile phone industry would like to express its heartfelt appreciation to
the Prime Minister’s Office, MoF and MeitY.”
“The adjustment of BCD to 10% on parts of mobile phones and mechanics and
die-cut parts and 0% on inputs of mechanics represents the start of a
paradigm shift in the policy orientation of the government towards export-led
growth and competitiveness.” Mr. Mohindroo remarked.
