CBIC clarifies 10% import duty on mobile phone displays

The CBIC lists parts or components that make up a mobile phone’s display assembly and will be subject to a 10% import duty. These parts include the touch panel, cover glass, and LED backlight.

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CBIC lists mobile phone display assembly components that attract a 10% import duty. Concessional customs duty of 10% on integrated display assembly. The CBIC issued a circular imposing a 10% BCD on display assembly for cellular mobile phone manufacturing.

It also stated that components such as the frame, SIM tray, and side keys such as the power/volume button, when fitted/attached to the integrated display assembly, can be imported at a reduced customs duty of 10%.

According to a circular issued by the Central Board of Indirect Taxes and Customs (CBIC), a concessional basic customs duty (BCD) rate of 10% is currently imposed on display assemblies for use in the manufacture of a cellular mobile phone, while a nil BCD rate is imposed on inputs or parts for use in the manufacture of a display assembly for use in the manufacture of a cell phone.

It stated that certain cases of misdeclaration by importers were intercepted by the Directorate of Revenue Intelligence (DRI) and other field formations, and demand notices were issued in some cases.

With the industry facing “interpretational challenges” in the display assembly of cellular mobile phones, a committee comprised of officials from both CBIC and MeitY recommended a principle that could be used to determine the interpretation of display assembly in order to extend the concessional BCD rate.