Mobile display assembly with or without support to attract basic custom duty of 10 per cent: CBIC

The Central Board of Indirect taxes & Custom (CBIC) has mentioned the Display Assembly of a cellular handset, imported with or without again support, will attract Basic Custom Duty (BCD) of 10 per cent. However, if it comes with numerous parts, the speed of duty will probably be 15 per cent.

The Directorate of Revenue Intelligence (DRI) lately booked firms similar to Vivo and Oppo on the problem of mis-declaration of sure objects. In the case of Vivo India, DRI mentioned mis-declaration resulted in wrongful availment of ineligible duty exemption advantages amounting to Rs 2,217 crore. Mis-declaration by Oppo resulted in wrongful availment of ineligible duty exemption advantages amounting to Rs 2,981 crore.

According to the round, though the again support body of metallic/ plastic has no important operate in display and solely offers power, safety and structural stability, the mere attachment of a again support body of metallic/plastic on the display assembly doesn’t alter the important attribute of display in any method, and the assembly would proceed to be handled as a Display Assembly of a mobile cell phone. Therefore, “if display assembly of cell phone is imported with merely a again support body of metallic/ plastic hooked up to it, the assembly continues to be a Display Assembly of a mobile cell phone and a BCD charge of l0 per cent shall be utilized,” it mentioned. However, if the again support body of metallic/plastic is imported individually, it’s going to attract a BCD charge of 15 per cent.

Also, if another merchandise together with the sim tray, antenna pin, speaker web, energy key, slider change, battery compartment, Flexible Printed Circuits (FPCs) for quantity, energy, sensors, audio system, finger print, and many others, come fitted with a Display Assembly, with or without a again support body of metallic/plastic, then the entire assembly attracts a BCD charge of 15 per cent, the round mentioned.

CBIC mentioned although notification has been issued, there have been cases of mis-declaration. Also, the Ministry of Electronics and Information Technology (MeitY) shared a Technical Document that offered the distinguished constituents of a Display Assembly of a mobile cell phone, which was shared with area formations for ease of evaluation.

The doc states that the Display Assembly is an assembly of parts and sub-components similar to Touch Panel, Cover Glass, Brightness Enhancement Film, Indicator Guide Light, Reflector, LED Backlight, Polarizers, and many others, that are put collectively to type a single assembly, having the principal operate of displaying photographs and textual content.

Further, the Display Assembly might come with or without the again support body of metallic/ plastic. It steered if the display assembly comes with extra components similar to mechanics or another objects, within the type of an assembly, the entire assembly is liable to attract BCD on the charge of 15 per cent. CBIC got here out with the most recent round based mostly on all of the consultations.