Representative photo | Photo source: Reuters
On June 7, CBIC listed the parts or components such as touch panel, glass cover and LED backlight that constitute the display assembly of a mobile phone and will be subject to 10% import duty. It was also stated that the components including the bezel, SIM tray and side keys such as power/volume button when mounted/attached to the display assembly, integrated display assembly can be imported at a concessionary duty rate of 10%.
In a circular, the Central Board of Indirect Taxes and Customs (CBIC) has stated that currently, a preferential rate of basic customs duty (BCD) of 10% is levied on the assembly of displays for exploit in mobile phones and zero BCD is levied on the assembly of displays for exploit in mobile phones. . inputs or parts for exploit in the manufacture of a display assembly for exploit in the manufacture of a cellular mobile telephone.
It was found that some cases of false declarations filed by importers were intercepted by the Directorate of Revenue Intelligence (DRI) and in some cases other field formations and demand notices were also issued.
As the industry faces “interpretive challenges” regarding display assembly in mobile phones, a committee comprising CBIC and MeitY officials has recommended a rule that can be used to determine the interpretation of the display assembly for extension of the concessional BCD rate.
If the display assembly is imported with elements/components including the receiver grid, speaker grid, support frame and antenna pin that are fabricated, embedded, fitted or attached to the assembly, the entire integrated assembly should also be considered as a mobile phone assembly display, which has attracted BCD rate of 10 percent.
ICEA Chairman Pankaj Mohindroo said that this circular comes as a substantial relief to the industry and will avoid unnecessary legal proceedings.
