Indian Industry Welcomes Removal of Duty on Open Cell for Manufacture of LCD and LED Television Panels, Suggests Cut in TV GST to 18% to Curb Smuggling

· Open Cell for Manufacture of LCD and LED Television Panels Customs Duty Reduced to Nil from 5%

· Zero Duty for PCBA, Chip on Film and Cell for the mfr of Open Cell of LCD and LED TV Panels

· Exemption Applicable upto 30 Sept 2020

The Government has finally removed the Custom Duty on Open cell for manufacture of LCD and LED TV Panels.

The rampant smuggling and mis-declaration of Open cell as tempered glass to under value imports was coming in the way of organized manufacturing. There is no incentive now to mis-declare Open cell which is now at zero duty for manufacture of TV panels using the latest LCD/ LED technology. The change will also make imports competitive since zero duty from ASEAN under FTA was in competition with the general duty of 5%. An Industry Association had brought to the notice of the Government that the official imports were far-far lower than the actual consumption in India, where practically the entire population of 249 million households is adopting the LED as the standard screen in the drawing room. The reform will lead to the death of the grey market and push to organised manufacturing. The same pattern was earlier visible in the early-2000 when the grey market in Mobile phone market was killed by zero duty imports. This was followed by the birth of mobile manufacturing which now accounts for a production turnover of Rs 170,000 crores.

The sunset of the zero-duty on Open cell one year from now on 30^th September, 2020 by which time investment in this segment is expected. The move to include key parts like Printed Circuit Board Assembly (PCBA) ensures that the zero-duty dispensation is developed properly.

The Industry urged the Government to follow up with reduction in GST to 18% from the so-called sin rate of 28% for the entire category of TV industry, besides the fact that Communication and Entertainment is an essential service, the high rate is leading to rampant evasion of duty by non-declaration as well as mis-declaration of value in the domestic trade.

The Industry Association also said that the import of duty-free television sets from ASEAN countries especially Vietnam needs a review so that India too gains from the Agreement. It requested both the Commerce and Finance Ministries to move forward the review of ASEAN FTA announced by the Government recently

[Notification No. 30/2019-Customs, Dated 17 September, 2019]

Seeks to amend notification No. 50/2017-Customs dated 30.06.2017 to reduce basic customs duty on Open cell (15.6” and above) for use in the manufacture of Liquid Crystal Display (LCD) and Light Emitting Diode (LED) TV panels and certain goods for use in the manufacture of Open cell of Liquid Crystal Display (LCD) and Light Emitting Diode (LED) TV panels.

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and sub-section (12) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 785(E), dated the 30th June, 2017, namely:-

In the said notification,

(I) In the Table, for S. No. 515A and the entries relating thereto, the following serial numbers and entries shall be substituted, namely: -

(1)	(2)	(3)	(4)	(5)	(6)
"515A	8529	Open cell (15.6" and above) for use in the manufacture of Liquid Crystal Display (LCD) and Light Emitting Diode (LED) TV panels of heading 8529	Nil	-	9
515B	8529	The following goods for use in the manufacture of Open cell of Liquid Crystal Display (LCD) and Light Emitting Diode (LED) TV panels of heading 8529, namely: -	Nil	-	9";
		(i) Chip on Film;
		(ii) Printed Circuit Board Assembly (PCBA);
		(iii) Cell (glass board/substrate).

(II) In the first proviso, after clause (c), the following clause shall be inserted, namely: -

"(d) the goods specified against serial numbers 515Aand 515B of the said Table after the 30th day of September, 2020.".

F.No.354/20/2017-TRU (Pt.)