Indian Government Issues a 10 Percent Basic Customs Duty (BSD) on Imported Mobiles and Mobile Parts

On the same day of Goods and Service Tax (GST) roll out across the country, the Government also imposed a 10 percent basic customs duty (BCD) on cellular mobile phones and specified parts of cell phones such as chargers, battery, wired headphones, microphones, keypad, USB cables, and receivers.

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An official statement from Government stated: “The Government had constituted Inter-Ministerial Committee comprising of officers from Ministry of Electronics and Information Technology, the Department of Commerce, Department of Telecommunication and Department of Revenue to identify electronic / IT / telecom products, which are not Information Technology Agreement, for customs duty enhancement on them.”

Also, the basic customs duty charges of 10 percent will also be applicable for “certain other specified electronic goods,” but the government did not disclose the items.

“The present exemption from basic customs duty on specified parts of mobiles, namely, Printed Circuit Board Assembly (PCBA), Camera Module, Connectors Display Assembly, Touch Panel / Cover Glass Assembly, Vibrator Motor / Ringer will continue,” read the statement.

“Further, inputs and raw material for the manufacture of parts of above-specified electronics goods including mobile phones will also continue to be exempt from BCD,” the statement added.

The changes will be implemented from today. With this move, Government is indirectly asking international companies such as Foxconn and Wistron to manufacture devices in India itself.

Furthermore, Indian Cellular Association President, Pankaj Mohindroo said: “The replacement of differential duty with BCD will protect and enhance India’s credibility about its resolve to build robust mobile phones and component manufacturing industry. The 500 million production target for 2019 will become a reality with this and a few more critical measures like an appropriate export promotion dispensation.”

Already various international brands are setting up manufacturing plants in India to produce the mobile phones locally, which is also expected to lower the prices of devices. For example, Apple’s official phone maker, Wistron has already set up a plant in Bengaluru and also allegedly selling the iPhone SE assembled in India.

Also, a report from Indian Cellular Association (ICA) revealed that excess of 175 million units valued Rs. 90,000 crore were produced in India in FY17. The number is up from 100 million handsets worth Rs. 54,000 in FY16. Also, a counterpoint research report claims 80 percent of mobile phones sold in India in March are locally made.

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17 Comments on "Indian Government Issues a 10 Percent Basic Customs Duty (BSD) on Imported Mobiles and Mobile Parts"

 

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Kiran Fernandes | Goa
July 2, 2017 2:13 am 2:13 AM

Crap. So that means from now on, any electronics we buy from aliexpress, will be charged 10%? What about graphics cards N stuff for the computer? I’ve bought alotta stuff from sites like Gearbest, aliexpress, ebay dot com, Amazon dot com, etc.
At least, abolish income tax ffs

Arena
July 2, 2017 9:14 am 9:14 AM

It’s not like that….it will be same as before,but now value is fixed. Moreover it’s for Mass importers, whole phone importers, common man has no effect when buying 1-2 pieces under 50-100 dollars. All depends on mode of shipping. If it’s free then easy pass on with delay, if it’s express service like DHL, then they pay in advance for clearance. Have to see what changed…costly and important stuff goes through DHL,FedEx, TNT..for sure they will be charged.

Kiran Fernandes | Goa
July 2, 2017 1:40 pm 1:40 PM

Ah nah I don’t tell them to use DHL FedEx as they’re overpriced and customs are a bi .

Girish Gowda
July 1, 2017 10:06 pm 10:06 PM

10% is too less. Should have been 20%.

Prithvi
July 1, 2017 7:01 pm 7:01 PM

Charge 50% for Chinese manufacturers’ accessories and provide an incentive for Made In India accessories.

Sudhakar
July 1, 2017 9:24 pm 9:24 PM

It must charge 90% tax for chinese companies like xiaomi, oppo, vivo, karbonn, g-five, micromax, meizu and lenovo.

Kiran Fernandes | Goa
July 2, 2017 3:55 am 3:55 AM

And 150% for Nokia and Samsung devices too.

Sudhakar
July 2, 2017 1:41 pm 1:41 PM

And 300% for xiaomi and similar chinese companies too.

Sudhakar
July 2, 2017 12:45 pm 12:45 PM

What about 300% for xiaomi, oppo, vivo, karbonn, g-five, micromax, meizu and lenovo?.

Kiran Fernandes | Goa
July 2, 2017 11:04 pm 11:04 PM

yeah that’d be great. Are you gonna implement it? no?

Mak
July 1, 2017 9:15 pm 9:15 PM
First Indian manufacturer’s have to match the level of quality of the product’s as the Chinese oem provide . Giving Incentives will not amount to good quality outputs until the manufacturer is from Indian origin as here we only see quantity not quality and you mr. Prithvi I think you are using all the things manufactured by Indian manufacturer ????? Go and search in your home I bet there will be at least 1 chinese item if not , Then I will write to Pmo for giving you award for your achievement and Will also write about your thought of… Read more »
Anirban
July 1, 2017 11:28 pm 11:28 PM

Well said….. Stupids remains stupid always.

Sunny | Lucknow
July 1, 2017 10:59 pm 10:59 PM

Whoaaa look whose heart beats for Chinese maal, lol. Gareebi bhi kya kya din dikhati hai 🙁

Kaushik
July 4, 2017 2:34 am 2:34 AM

TBH the best competition to Chinese brands today are Taiwanese brands (Asus, HTC, InFocus, Sharp) and not the Japanese, Indian or Korean ones.

Nikhil
July 1, 2017 8:44 pm 8:44 PM

Rightly said

Etios
July 1, 2017 7:57 pm 7:57 PM

All the Chinese companies have set up factories in India, so nobody can be charged at your 50% rate.

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