CBIC Clarifies 10% Import Duty for Mobile Display Components

The CBIC outlined specific mobile phone components that will be subjected to a 10% import duty. Components integrated with the display assembly will qualify for the concessional rate. This action addresses industry interpretation challenges and aims to prevent misdeclaration by importers, reducing unnecessary litigation.

The Central Board of Indirect Taxes and Customs (CBIC) on Friday detailed the various components, such as touch panels, cover glass, and LED backlights, that make up the display assembly of mobile phones and will now attract a 10% import duty.

Furthermore, components including the frame, SIM tray, and side keys like power and volume buttons, when fitted to the display assembly, can be imported at this concessional 10% customs duty rate. The CBIC clarified that a 10% basic customs duty (BCD) rate applies to display assemblies used in manufacturing cellular phones, while parts for these assemblies incur no BCD.

Following misdeclaration cases intercepted by the Directorate of Revenue Intelligence (DRI), a joint committee from CBIC and MeitY was formed to address the industry's interpretational challenges. The committee recommended that integrated display assemblies with fabricated or attached components like receiver mesh and speaker nets should be treated as display assemblies and be subjected to the 10% BCD rate. ICEA Chairman Pankaj Mohindroo described the circular as a significant relief, likely to reduce litigation within the industry.