CBIC Clarifies Import Duty on Mobile Phone Display Components

The Central Board of Indirect Taxes and Customs (CBIC) has clarified which components of the display assembly of mobile phones will attract a 10% import duty. Components such as the touch panel and LED backlight are now listed while integrated display assemblies can be imported at a concessional rate. This aims to prevent misdeclaration and streamline industry processes.

The Central Board of Indirect Taxes and Customs (CBIC) has issued a detailed clarification on the import duty applicable to various components of mobile phone display assemblies. Components like touch panels and LED backlights will attract a 10% import duty, while integrated display assemblies can be imported at a concessional 10% duty rate.

This move follows intercepts by the Directorate of Revenue Intelligence (DRI) that discovered cases of misdeclaration by importers. The CBIC has convened a committee along with the Ministry of Electronics and Information Technology (MeitY) to address industry challenges and recommend interpretations for display assembly components eligible for the concessional rate.

ICEA Chairman Pankaj Mohindroo lauded the circular, stating it brings much-needed clarity to the industry and helps avoid unnecessary litigation.