Seeking Clarification

[K.Shashi Nair]

Sir,

I have a unit in Chennai that manufacturers Mobile batteries. We import parts from Chennai such a Li-Ion cells, PCM's and few plastic parts, which gets assembled in my unit for making a Battery. This is being supplied to Rising Stars Mobile India Pvt Ltd, Sricity, AP.

While importing these parts we followed the following notifications

(a) Cu Notf 12/2016 dated 01/03/2016 Sr 431B which had Nil duty. It read : Inputs or parts for use in manufacturer of battery for mobile handsets including cellular phones.

Subsequently after amendments in notification, we followed

(b) Cus Notf 57/2017 dated 30/06/2017 Sr 7 which had nil duty. It read as 'Inputs or Raw Materials for use in manufacturer of following parts of Cellular Mobile Phone ; (ii) Battery Pack'

On 29/01/2019 a new notification 02/2019 was released that is now being followed:

(c) Cust Notf 02/2019 dated 29/01/2019 which has 5% duty. It reads as: 'Lithium ion cell for use in manufacturer of battery pack of cellular phone'

The question here is 12/2016 mentions as 'Manufacturer of Battery' which 57/2017 and 02/2019 mentions as 'Manufacturer of Battery Pack'

Can we treat Battery Pack is same is Battery in this case of 57/2017 and 02/2019.

A clarification from our end in this regard has come up from Chennai customs. Could you please help me with providing a necessary justification?

Thanks

Shashi Nair K

+919603869869 / +919581226869

AI Summary

Business Owner Seeks Clarification on Import Duty for Mobile Battery Parts Under Notifications 12/2016, 57/2017, and 02/2019 A business owner in Chennai, involved in manufacturing mobile batteries, seeks clarification on customs duty notifications related to importing parts. Initially, imports were duty-free under notifications 12/2016 and 57/2017, which referred to 'battery' and 'battery pack' respectively. However, a new notification, 02/2019, imposes a 5% duty on lithium-ion cells for 'battery packs.' The owner questions if 'battery' and 'battery pack' are interchangeable in this context. A response from an expert, Dr. Mariappan Govindarajan, suggests they are not considered the same. The owner seeks further justification for this interpretation from Chennai customs.