Customs duty on Display Assembly of a cellular mobile phone

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....phone-reg Madam/Sir, Reference is invited to S. No. 5D of notification No. 57/2017-Customs dated 30.06.2017 that provides a concessional basic custom duty (BCD) rate of 10% for Display Assembly for use in manufacture of a cellular mobile phone and a Nil BCD rate on inputs or parts for use in manufacture of a Display Assembly for use in manufacture of a cellular mobile phone. 2. While the notification No. 57/2017-Customs clearly prescribed the applicable BCD rates on Display Assembly of cellular mobile phone and its parts, instances of misdeclaration of Display Assembly imported as parts were reported. On request, the Ministry of Electronics and Information Technology (MeitY) shared a Technical Document, vide O.M. No. W-14/2/2020-IPHW dat....

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....reafter, MeitY has conveyed that while the notifications gave prospective clarity with respect to extension of concessional BCD rate of 10% for display assembly, the issues exist regarding the interpretation of display assembly for the past period. 6. MeitY has particularly raised issues of ambiguity in the interpretations of Circular No. 14/2022-Customs dated 18.08.2022, and requested DoR to examine the interpretation of display assembly of cellular mobile phone as per circular No. 14/2022-Customs dated 18.08.2022, by considering a revised list of items that are included/excluded from the display assembly of a cellular mobile phone. The matter was examined by a Committee constituted with officials from both CBIC and MeitY, which recommend....

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....Assembly of a cellular mobile phone, attracting a BCD rate of 10%: a) Frame / Support structure including front, back, or side - any form / material). Support frame may include hooks, fangs, and integrated sockets b) Receiver Mesh, Speaker Net c) Foam, sticker, protective film, mylar, conductive cloth d) SIM Socket e) SIM Tray f) Antenna Pin g) Side Keys like power key, slider switch, volume button (iii) Display Assembly of a cellular mobile phone may be imported with or without the items listed at (a) to (c) in para 7 (ii) above. Although, these items/components have no essential function in display and only perform auxiliary function of providing strength, support, protection from dust, acting as adhesive material, protecti....