On 5 May 2016, the Indian Ministry of Finance through Notifications No. 30,/2016, 31/2016 and 32/2016 amended the applicable import duty as was earlier announced in the Budget 2016-17 on the below products -
- Special Additional Duty withdrawn on charger or adapter, battery, wired headsets and speakers of mobile handsets including cellular phones
- Basic customs duty(BCD) on mobile phone components including "charger or adapter, battery, wired headsets and speakers of mobile handsets including cellular phones" is withdrawn. The total import duty on such components is reduced from 29.44% to 12.5%, which rationalizes it with the import duty of mobile phones.
- 2% SAD on import of populated PCBs for manufacture of mobile phones also withdrawn
- BCD on perform of silica for manufacture of telecommunication grade optical fibres/cables is being reduced from 10% to 5%
- BCD exemption withdrawn on populated PCBs imported to be used in the manufacture of broadband modems, routers, set top boxes, digital video recorders/network video recorders, television reception apparatus, CCTV cameras/IP camera, and lithium ion batteries. However the sub-parts for the manufacture for these PCBs will still be exempt from basic customs duty.
- BCD exemption on parts, testing tools, tool-kits for maintenance, repair, and overhauling of aircraft has been extended to include components and engines of airplanes as well
- BCD exemption is provided under HS 8803 on components or parts, including engines of aircraft if such parts or components are re-exported post repair, maintenance or overhauling
- The importer of the parts, components, tools and equipment will be required to maintain and submit an account of such products imported and actually used in the repair or maintenance. Further, on parts and equipment that are not used for such repair or maintenance or overhaul may be subject to import duty, as specified by the Commissioner of Customs