The cost of mobile phones in India could likely go up in the near future. India’s apex indirect tax has issued an order stating that more custom duty charges will be applied depending on the inputs used in the mobile phones. In case if a higher cost is levied on the components that are used in smartphones, then the OEMs could pass on an additional cost to buyers.
According to a report from PTI, it is expected that the import of display assembly of smartphones along with back support frames will be hiked with 10 per cent of basic custom duty. Notably if antenna pins, power keys, and other accessories get imported along with display assemblies then the custom duty will be charged higher up to five per cent and total charge would appear as 15 per cent, as per the order from Central Board of Indirect Taxes and Customs (CBIC).
The CBIC says, “If any other item like the sim tray, antenna pin, speaker net, power key, slider switch, battery compartment, Flexible Printed Circuits (FPCs) for volume, power, sensors, speakers, fingerprint etc, come fitted along with a display assembly with or without a back support frame of metal/plastic, then the whole assembly attracts a BCD rate of 15 per cent.”
CBIC further stated that if the display assembly comprises additional components, then it will be regarded as a violation of the exemption notification. Whereas the industry is saying that all the components that are attached to display content on a mobile phone should be regarded as a display assembly. Hence, there should be 10 per cent custom duty only.
To clarify about the list of display assemblies and its items, the Ministry of Electronics and Information Technology (MeitY) has provided a detailed list of display assemblies to make it easier to understand. To recall, Display Awareness is basically an assembly of the components and subcomponents of a cellular mobile phone. Moreover, the display assembly consists of a touch panel, cover glass, brightness enhancement film, indicator guide light, reflector, LED blacklight, polarizers, and LCD Driver mounted on a flible Printed Circuit among others.
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