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DRI Clarifies: 10% Import Duty on Mobile Components

The Department of Revenue Intelligence (DRI) has clarified that input components attached to display assembly of a mobile phone shall attract a combined import duty of 10%, clearing the ambiguity surrounding duty calculations for over four years now.

The DRI cleared that certain components such as SIM Socket, SIM Tray, Antenna Pin, Side Keys like Power Key, Slider Switch and Volume Button which are not part of phone displays, may come fitted or attached with display assembly kits. In that scenario, “the assembly continues to be a Display Assembly of a cellular mobile phone and a BCD rate of 10% shall be applied on the whole integrated assembly,” it said in a circular on Friday.

“This circular is a relief to the industry and will avoid unnecessary litigation,” said Pankaj Mohindroo, chairman of the India Cellular and Electronics Association (ICEA) which represents major phone companies. “ICEA particularly acknowledges the Ministry of Electronics & IT and Prime Minister’s Office for leading the way to find a resolution to this challenge. We also remain deeply appreciative that the Department of Revenue has acknowledged and understood the critical issue” he said.

DRI’s notice puts an end to the prolonged confusion among mobile phone manufacturers, customs officers, the DRI as well as the electronics & IT ministry who have been struggling to clear the air since 2020 when the basic customs duty of 10% waslevied on import of display assemblies. In 2022, Chinese smartphone makers Vivo and Oppo, and Xiaomi India had received show cause notices asking for penalty of a combined ₹7259 crore, which they fought in the courts.

S-ET Image Source: Google

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