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Tariff Structure

The salient features of tariff structure presently applicable to Electronics Hardware Industry in India are as under:

  • Peak rate of Basic Customs Duty (BCD) is 10%.
  • BCD on 217 tariff lines covered under the Information Technology Agreement (ITA) of WTO is 0%.
  • All goods required in the manufacture of ITA items are exempted from BCD subject to actual user condition. Special Additional duty of Customs (SAD) has been reduced from 4% to Nil for all goods except populated PCBs, falling under any Chapter of the Customs Tariff, for use in manufacture of ITA bound goods vide Notification No. 11/2015-Customs dated 01.03.2015.
  • BCD on specified raw materials / inputs used for manufacture of electronic components and optical fibres and cables is 0%.
  • BCD on specified capital goods used for manufacture of electronic goods is 0%.
  • To promote indigenous manufacturing of TVs, BCD has been reduced to 0% on the following:
    1. LCD, LED or OLED TV Panels; Colour Picture Tube.
    2. Specified parts of LCD and LED TV Panels (including open cell, plate diffuser, film diffuser, back light unit module).
  • To promote indigenous manufacturing of Set Top Boxes (STBs):
    1. BCD on STBs increased to 10%.
    2. The domestic STB manufacturers had to pay CST equivalent to VAT rate (typically 12.5%). This has been resolved by extending the facility of Form ‘C’ to STBs vide O.M of Department of Revenue dated 13th August, 2014.
  • To promote indigenous manufacturing of Mobile Handsets:
    1. Parts, components and accessories for the manufacture of mobile handsets; sub-parts for the manufacture of such parts and components are exempted from BCD and Excise Duty.
    2. Differential Excise Duty dispensation is available to Mobile Handsets i.e. Countervailing Duty (CVD) @12.5% and Excise Duty @1% without CENVAT credit or 12.5% with CENVAT credit.
  • To promote indigenous manufacturing of Tablet Computers:
    1. Parts, components and accessories for use in the manufacture of tablet computers and their sub-parts for use in manufacture of parts, components and accessories are exempted from BCD, CVD and Special Additional Duty of Customs (SAD).
    2. Differential Excise Duty dispensation is available to Tablet Computers i.e. CVD @12.5% and Excise Duty @2% without CENVAT credit or 12.5% with CENVAT credit.
  • To promote indigenous manufacturing of Medical Electronic Products:
    1. Excise Duty / CVD and SAD is exempted on specified raw materials for use in the manufacture of Pacemakers.
    2. BCD on certain specified inputs for use in the manufacture of Flexible Medical Video Endoscopes has been reduced from 5% to 2.5%.
    3. BCD reduced to 2.5% with 6% CVD and Nil SAD on parts of Blood Pressure Monitors and Blood glucose monitoring systems (Glucometers) on actual user basis.

 

Files

Download
• Anti-dumping duty on imports of Solar Photovoltaic Cells, Modules and Thin films, DGAD, May 2014 (2.04 MB)
• Notification on disallowing Flat Panel (LCD/LED/Plasma) Television under Baggage rules, Ministry of Finance, August 2013
• Notification regarding exemption of duties for Custom Cleared shops on airports,Ministry of Finance, May2013 (46 KB)
• Central Excise Notification, Ministry of Finance, May 2013 (179 KB)

 

 

 

 

 

 

 

 

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