Article: Clarification on Classification and Customs Duty for Interactive Flat Panel Displays (IFPDs) and Monitors – Circular No. 12/2025-Customs dated 7th April 2025.

In response to concerns raised by industry stakeholders and customs field formations, the Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 12/2025-Customs, dated 7th April 2025, to provide clarity on the classification and applicable Basic Customs Duty (BCD) on Interactive Flat Panel Displays (IFPDs) and other monitors. This circular aims to address confusion that followed the changes introduced in the 2025-26 Union Budget, particularly concerning tariff item 8528 59 00.

Background: Change in Duty Structure

Prior to the 2025-26 Budget, all goods under tariff item 85285900 attracted a uniform BCD of 10%. However, from 2nd February 2025, the duty on Interactive Flat Panel Displays (IFPDs) was doubled to 20%, as specified under Section 103(a) read with the Second Schedule of the Finance Act, 2025. This change was implemented to curb the misuse of the classification and ensure appropriate revenue collection on high-end, feature-rich displays like IFPDs.

To ensure that the increased rate applied only to IFPDs, and not to general monitors, the government continued the 10% BCD for monitors other than IFPDs, under the condition that they complied with Import of Goods at Concessional Rate (IGCR) rules, as per Sl. No. 515C of Notification No. 50/2017-Customs.

However, industry associations flagged issues with this IGCR condition, particularly because many imported monitors are not used in further manufacturing—a key requirement under the IGCR provisions.

Amendment to Remove IGCR Condition

Recognizing the practical difficulty, the CBIC issued Notification No. 23/2025-Customs, dated 4th April 2025, amending the entry at Sl. No. 515C of Notification No. 50/2017-Customs to remove the IGCR condition. This move simplifies compliance and confirms that the intent was never to impose the 20% rate on general-purpose monitors.

Distinction Between IFPDs and Other Monitors

To avoid classification disputes and ensure consistent application of the customs duty structure, the CBIC, based on inputs from the Ministry of Electronics and Information Technology (MeitY) (OM dated 13.03.2025), provided a detailed technical comparison between IFPDs and other monitors:

This table provides clear guidance for distinguishing IFPDs from traditional monitors during customs assessment and classification.

Classification and Duty Rates Clarified

The circular further confirms the tariff classification and applicable duty rates as follows:

• IFPDs and Monitors (other than IFPDs):
  • HS Code: 8528 59 00
  • BCD:
    • IFPDs: 20%
    • Monitors other than IFPDs: 10% (now without IGCR condition)
• Parts of IFPDs such as:
  • Touch Glass Sheets
  • Touch Sensor PCBs

These are to be classified under HS Code 8529, and attract a BCD of 5%, as per Sl. No. 515D of Notification No. 50/2017-Customs.

Impact and Compliance Considerations

This clarification brings much-needed uniformity and certainty to the classification and duty structure for display devices. Importers, customs brokers, and field officers must now carefully evaluate product specifications using the outlined technical guide to avoid misclassification. Importers of non-interactive monitors can continue to benefit from the lower duty rate without the burden of IGCR compliance.

In case of any implementation difficulties, stakeholders have been advised to contact the Board.

Conclusion

Circular No. 12/2025-Customs streamlines the customs administration of display devices by removing outdated conditions and providing precise technical criteria for distinguishing IFPDs from general monitors. This step reflects the government's effort to balance revenue protection with trade facilitation, offering clarity to both industry and customs authorities.