V. PROPOSALS INVOLVING CHANGES IN EFFECTIVE BASIC CUSTOMS DUTY RATES IN RESPECT OF PHASED MANUFACTURING PROGRAM [PMP] WITH RESPECT TO SPECIFIC ELECTRONIC GOODS
S.No. | Chapter, heading, sub-heading, or tariff item | Commodity | From | To |
2022-23 | 2023-24 | 2024-25 | 2025-26 |
PMP for Wrist Wearable Devices (Smart watches) |
Following parts [S. No. 1 to 7] for manufacture of wearable devices falling under tariff item 8517 62 90 of the Customs Tariff |
1. | 8517 79 10 | Printed Circuit Board Assembly (PCBA) | NIL | NIL | 10% | 15% | 15% |
2. | 8544 | Charging Cable | 10% | NIL | 5% | 10% | 15% |
3. | 39, 73, 85 | Specified parts of wearable devices | As per CTH | NIL | 5% | 10% | 15% |
4. | 8507 60 00/ 8507 80 00 | Battery | 15% | NIL | 5% | 10% | 15% |
5. | 8517 79 90 | Display Assembly | NIL | NIL | NIL | 5% | 10% |
6. | 8501 | Vibrator Motor | 10% | 10% | 10% | 10% | 10% |
7. | Any Chapter | Parts, sub-parts, and raw materials for use in the manufacture of the S. Nos 1 to 6 above | As per CTH | NIL | NIL | NIL | NIL |
8. | 8517 62 90 | Wrist Wearable Devices (Commonly known as Smart Watches) | 20% | 20% | 20% | 20% | 20% |
Note: IGCR conditions shall apply for the items in S. No. 1 to 7 above. |
PMP for Hearable Devices |
Following parts [S. No. 1 to 6] for manufacture of hearable devices falling under sub-headings 8518 21, 8518 22, 8518 29 or 8518 30 of the Customs Tariff |
1. | 8518 90 00 | PCBA for Hearable Device | 10% | NIL | 10% | 15% | 15% |
2. | 8544 | USB Cable | 10% | 15% | 15% | 15% | 15% |
3. | 73, 74, 85 | Specified parts of hearable devices | As per CTH | NIL | 5% | 10% | 15% |
4. | 8507 60 00/ 8507 80 00 | Battery | 15% | NIL | 5% | 10% | 15% |
5. | 8518 90 00 | Speaker Assembly (Pre-assembled speaker driver with protective mesh, but not including PCBA or battery) | 10% | NIL | NIL | 5% | 10% |
6. | Any Chapter | Parts, sub-parts, and raw materials for use in the manufacture of the S. Nos 1, 3, 4, and 5 above | As per CTH | NIL | NIL | NIL | NIL |
7. | 8518 21, 8518 22, 8518 29, 8518 30 | Hearable Devices Note | - Hearable devices mean: - (i) true wireless stereo (TWS), headphones, earphones and similar devices like earbuds, neckbands, headsets, etc., whether or not combined with a microphone, being capable of connecting through a wireless medium; and (ii) portable bluetooth speakers comprising of an amplifier and loudspeaker(s) with maximum output power not exceeding 40 Watts, having battery as a source of power and capable of wireless connectivity through bluetooth. | 15% | 20% | 20% | 20% |
Note: IGCR conditions shall apply for the items in S. No. 1 to 6 above. |
PMP for Smart Meters |
Following parts [S. No. 1 to 6] for manufacture of smart meters falling under tariff item 9028 30 10 of the Customs Tariff |
1. | 9028 90 10 | Assembled / Populated PCB for Smart Meters | 7.5% | 20% | 20% | 20% | 20% |
2. | 8517 69 90 | Communication Module | 10% | NIL | NIL | 5% | 10% |
3. | 8536 49 00 | Relay | 10% | 5% | 10% | 10% | 15% |
4. | 8517 71 00 | Antenna | NIL | NIL | NIL | 5% | 10% |
5. | 8524 11 00/ 8524 91 00 | LCD & Backlight for LCD | 15% | NIL | 5% | 10% | 10% |
6. | 8506 50 00 | Battery | 10% | NIL | 5% | 10% | 10% |
7. | Any Chapter | Parts, sub-parts, and raw materials for use in the manufacture of the S. Nos 1 to 6 above | As per CTH | NIL | NIL | NIL | NIL |
8. | 9028 30 10 | Smart Meters | 15% | 25% | 25% | 25% | 25% |
Note: IGCR conditions shall apply for the items in S. No. 1 to 7 above. |
Full Text:
Budget 2022-23 + FINANCE Bill, 2022
Phased customs duty changes on electronic imports introduce staged rates for components and finished devices to incentivise local manufacture. Proposed amendments establish phased basic customs duty schedules under the Phased Manufacturing Program for wrist wearable devices, hearable devices, and smart meters, specifying year-by-year duty rates for identified components, sub-assemblies and finished units. IGCR conditions apply to enumerated component entries. The schedules distinguish classification-based parts and ''any chapter'' inputs, generally providing lower or nil duties initially for parts to encourage local assembly while setting distinct trajectories for imported finished products and assemblies.
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