Board Clarifies Monitors and IFPD Classification
·
In
the 2025-26 Budget, BCD on Interactive Flat Panel Displays (IFPDs)
classified under tariff item 85285900 was increased from 10% to 20%
with effect from 2nd February, 2025 vide Section 103 (a) read with Second
Schedule of the Finance Act, 2025 and declaration under the Provisional
Collection of Taxes Act, 2023. However, all goods classified under
tariff item 85285900 other than IFPD was continued at 10% BCD with IGCR
condition vide entry at S. No. 515C of the Notification No.
50/2017-Customs dated 30.06.2017. This was to prevent circumvention of the
higher duty on IFPDs . The intent was not to charge
20% on monitors other than IFPDs.
·
To
ensure uniformity in tariff classification of the IFPD and other
monitors, it is hereby clarified that both IFPDs and monitor, other than
IFPDs are classifiable under tariff item 85285900. It is further
clarified that parts of IFPDs, such as Touch
Glass Sheets and Touch Sensor PCBs, shall be classified under HS 8529
attracting BCD rate of 5% as per entry at Sr. No. 515D of the
Notification No. 50/2017-Customs dated 30.06.2017.
[CBIC Circular No. 12/2025-Customsdated 7 April,
2025]
Subject:
Clarification on the classification and applicable Basic Customs Duty
(BCD) for Interactive Flat Panel Displays (IFPDs) and other monitors.
Prior to 2025-26 Budget, all goods classified
under tariff item 85285900 attracted basic customs duty (BCD) of 10%. In the
2025-26 Budget, BCD on Interactive Flat Panel Displays (IFPDs) classified
under tariff item 85285900 was increased from 10% to 20% with effect
from 2nd February, 2025 vide Section 103 (a) read with Second Schedule of the Finance
Act, 2025 and declaration under the Provisional Collection of Taxes Act, 2023. However,
all goods classified under tariff item 85285900 other than IFPD was
continued at 10% BCD with IGCR condition vide entry at S. No. 515C of the Notification
No. 50/2017-Customs dated 30.06.2017. This was to prevent circumvention of the higher
duty on IFPDs . The intent was not to charge 20% on monitors
other than IFPDs.
2. Industry associations have sought clarification
regarding compliance with IGCR condition under said entry at S. No. 515C of the
Notification No. 50/2017-Customs since the imported monitors are not used
in further manufacturing activity. After examining the issue, vide Notification
No. 23/2025-Customs dated 04.04.2025, the entry at S. No. 515C of the Notification
No. 50/2017-Customs dated 30.06.2017 has been amended to remove the IGCR condition.
For distinguishing IFPDs from monitors other than IFPDs, based on the technical
inputs from Ministry of Electronics and Information Technology (MeitY) received vide their OM dated 13.03.2025, the following
may be used as a technical guide :
|
Feature |
Monitors (other than IFPDs) |
Interactive Flat Panel Displays (IFPDs) |
|
Touch Capability |
Non-touch |
Touch-enabled
(multi-touch support) |
|
Screen Size |
Typically, 15"
to 43" |
Typically, 55"
to 110" |
|
Resolution |
HD to 4K |
4K or higher |
|
Interactivity |
Limited to keyboard/mouse
input |
Touch, stylus input,
and gesture control |
|
Built-in Software |
No built-in software |
Includes interactive
software tools |
|
Built-in Speakers |
External speakers
needed |
Includes high-quality
built-in speakers |
|
Wattage |
Typically, 25W-50W |
Typically, 198W-400W |
|
Input Power |
DC power (Adaptor) |
AC power |
3. References have also been received
from field formations and Industry association seeking clarification
regarding the appropriate classification of the IFPDs Vis-a vis monitors,
other than IFPDs and parts of IFPDs. in light of inconsistency in classification
practice of such goods. To ensure uniformity in tariff classification
of the IFPD and other monitors, it is hereby clarified that both IFPDs and
monitor, other than IFPDs are classifiable under tariff item 85285900.
It is further clarified that parts of IFPDs, such
as Touch Glass Sheets and Touch Sensor PCBs, shall be classified under HS
8529 attracting BCD rate of 5% as per entry at Sr. No. 515D of the Notification
No. 50/2017-Customs dated 30.06.2017.
4. Difficulties, if any, faced in the
implementation of these instructions may be brought to the notice of the Board.
CBIC-190354/47/2025-TRU Section-CBEC