The Government had constituted Inter Ministerial Committee [IMC] comprising of officers from Ministry of Electronics and Information Technology (MeitY), the Department of Commerce (DoC), Department of Telecommunication (DoT) and Department of Revenue (DoR) to identify electronic / IT / telecom products, which are not Information Technology Agreement [ITA] – I bound, for customs duty enhancement on them.

With effect from 01.07.2017, the Government has imposed 10% basic customs duty (BCD) on:

a) Cellular mobile phones and specified parts of cellular mobile phones like charger, battery, wire headset, Microphone and Receiver, Key Pad, USB Cable etc.

b) Certain other specified electronic goods.

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.

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.

Notification Nos. 56/2017-Customs, 57/2017-Customs and 58/2017-Customs, all dated 30.06.2017 have been issued in this regard.

Basic customs duty on cellular mobile phones and specified electronic parts expanded, while certain parts and inputs remain exempt. Imposition of basic customs duty on cellular mobile phones and specified electronic goods and parts applies from 1 July 2017 by notifications issued 30 June 2017, covering finished phones and specified peripherals; exemptions continue for identified components (PCBA, camera module, connectors, display and touch assemblies, vibrator motors) and for inputs and raw materials used to manufacture parts of the specified electronics.