NEW DELHI: India will begin imposing basic customs duty (BCD) on smartphones of 10% from July 1 making imported devices more expensive than locally made ones, a move that will bring relief to international investors like Foxconn and iPhone maker Wistron, as well as Indian companies that have invested heavily in setting up factories in the country.
In a bid to protect local manufacturers, the government has imposed a 10 percent basic customs duty (BCD) on cellular mobile phones and specified parts of cell phones like charger, battery, wire headset, microphone and receiver, key pad and USB cable from Saturday, an official statement said here.
The decision came on the day the government rolled out Goods and Services Tax across the country.
The BCD of 10 percent will also be imposed on certain other electronic goods, the finance ministry statement said without specifying the items.
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 for customs duty enhancement on them.
“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,” the statement clarified.
“Further, inputs and raw material for manufacture of parts of above specified electronics goods including mobile phones will also continue to be exempt from BCD,” it added.
