The Central Board of Indirect Taxes and Customs (CBIC) on June 07, 2024, notified regarding the Customs duty on Display Assembly of a cellular mobile phone.
Notification No. 57/2017-Customs dated June 30, 2017, provides a concessional basic customs duty (BCD) rate of 10% for Display Assembly for use in the manufacture of a cellular mobile phone and a Nil BCD rate on inputs or parts for use in the manufacture of a Display Assembly for use in the manufacture of a cellular mobile phone.
However, misdeclaration, as above, seems to have continued in certain cases, which were intercepted by the Directorate of Revenue Intelligence (DRI) and other field formations, with issuances of demand notices in a few cases recently. In the wake of the investigation by DRI and other field formations, the industry has made representations to MeitY for intervention in the matter.
Thus, in partial modification of circular No. 14/2022-Customs dated August 18, 2022, based on the request of MeitY, the recommendation of the Committee for the clarifications on the Interpretation of the Display Assembly of Mobile Phones and exercise of the powers under Section 151A of the Customs Act, 1962, it is hereby clarified as under:
The Display Assembly of a cellular mobile phone consists of the combination of the following parts/components: a) Touch Panel b) Cover Glass c) Brightness Enhancement Film d) Indicator Guide Light e) Reflector f) LED Backlight g) Polarizer.
[Circular No. 06/2024-Customs]
