Budget 2021-22: Import duty on sub-parts of phones and chargers raised to 2.5%

The government has proposed raising basic customs duty (BCD) on import of sub-parts of mobile phones and battery chargers from nil to 2.5% in FY21-22.

“For greater value addition we are withdrawing a few exemptions on parts of chargers and sub-parts of mobiles. Further, some parts of mobile will move from nil rate to a moderate 2.5%,” finance minister Nirmala Sitharaman said during the budget speech.

With effect from April 1, 2021, BCD on import of printed circuit board assembly (PCBA), camera modules and connectors will be raised to 2.5%. For PCBA and moulded plastic for manufacture of charger or adapter, duty will go up from existing 10% to 15%. Whereas, other inputs and parts of chargers will attract 10% duty.

Completely built-up units (CBUs) of battery chargers attract 15-20% customs duty while handsets attract 22.5%. Certain sub-assemblies of phones such as display panels, printed circuit boards, mechanics and die cut parts are also liable for 10% duty to encourage greater value addition in India.

As of now, components totalling nearly 50% bill value of a mobile phone are liable to pay customs duty.