The government has introduced customs duty relief to reduce costs associated with importing various components and capital goods essential for manufacturing electronic products like smartphones and lithium-ion batteries. The Central Board of Indirect Taxes and Customs (CBIC) has released notifications to implement this duty waiver and expand the scope of goods eligible for concessional duty. One notification exempts five components used in manufacturing display assemblies for automotive, medical, and industrial purposes from basic customs duty until March 31, 2029, including cells, flexible printed circuit assemblies (FPCAs), backlight units, frames, and anisotropic conductive film (ACF).
Another notification extends zero customs duty until March 31, 2029, on six components used in producing inductor coil modules for wireless charging in cellular mobile phones. These components comprise nano-crystalline assemblies, E-shields, PET liners, PC shims, stranded and NFC coils, and neodymium-iron-boron (NdFeB) magnets. Additionally, a third CBIC notification replaces the existing list of machinery eligible for concessional customs duty for lithium-ion cell manufacturing with an expanded list of 85 capital goods, including coating machines, winding machines, welding systems, testing equipment, and other specialized manufacturing equipment. This initiative aims to enhance cost competitiveness, promote domestic value addition, and support the electronics and electric vehicles industry.
The customs duty waivers and concessions, valid until March 31, 2029, are intended to lower the import expenses of crucial components and capital goods, fostering cost competitiveness and encouraging greater domestic value addition. These measures align with the government’s strategy to bolster domestic capabilities in advanced electronics, battery manufacturing, and electric mobility supply chains.
