Battery Energy Storages for EVs to get 10% Special Rate, Mobile Phone Power Banks to Continue at 20%

CBIC Clarification: 10% BCD on Battery Energy Storage Systems (BESS)

1. Background

· S. No. 325 of Table I of Notification No. 45/2025-Customs dated 24.10.2025 prescribes a concessional Basic Customs Duty (BCD) rate of 10% on goods falling under tariff item 8507 60 00.

· The tariff rate for these goods is 20%.

2. Exclusions from the concessional rate

The 10% BCD concession excludes:

· Battery packs used in the manufacture of electrically operated or hybrid vehicles.

· Lithium-ion batteries or battery packs of cellular mobile phones.

· Power banks.

3. Issue addressed by CBIC

· Different assessment practices were being followed by Customs field formations for Battery Energy Storage Systems (BESS).

· Some formations were classifying stationary, grid-scale and industrial BESS as “Power Banks” and consequently denying the concessional BCD rate.

4. CBIC clarification

· The term “Power Bank” applies only to lithium-ion battery devices equipped with charging/discharging ports and designed to function as external charging devices for cellular mobile phones or portable electronic devices.

· Stationary, grid-scale and industrial lithium-ion BESS are not covered by the Power Bank exclusion, provided they fall under tariff item 8507 60 00.

5. Effect of this clarification

· Eligible stationary, grid-scale and industrial BESS under tariff item 8507 60 00 will attract 10% BCD instead of the 20% tariff rate, subject to the conditions of the notification.

· Such BESS cannot be denied the concession merely by treating them as “Power Banks”.

· The clarification corresponds to S. No. 528C of the erstwhile Notification No. 50/2017-Customs dated 30.06.2017.

[Circular No. 45/2026-Customs dated 9 October, 2026]

Subject: Clarification regarding scope of the term "Power Bank" under S. No. 325 of Table I of notification No. 45/2025-Customs dated 24.10.2025 (corresponding to S. No. 528C of the erstwhile notification No. 50/2017-Customs dated 30.06.2017).

Reference is invited to S. No. 325 of Table I of notification No. 45/2025- Customs dated 24.10.2025, vide which a concessional Basic Customs Duty (BCD) rate of 10% has been prescribed for goods falling under tariff item 8507 60 00, other than battery pack for use in the manufacture of electrically operated vehicle or hybrid vehicle; lithium-ion battery or battery packs of cellular mobile phones; and power banks. Tariff rate of goods covered under HSN 8507 60 00 is 20%.

2. It has come to the notice of the Board that divergent assessment practices are being followed by field formations in respect of Battery Energy Storage Systems (BESS) falling under tariff item 8507 60 00. It has been reported that some field formations are treating stationary/grid-scale/industrial BESS as "Power Bank" and are denying the concessional BCD rate of 10% available under the above entry.

3. The matter has been examined. It is hereby clarified that, for the purpose of S. No. 325 of Table I of notification No. 45/2025-Customs dated 24.10.2025 (corresponding to S. No. 528C of the erstwhile notification No. 50/2017-Customs dated 30.06.2017), the term "Power Bank" applies only to such lithium-ion battery devices with charging/discharging ports designed for use as an external charging device for cellular mobile phones or portable electronic devices. Accordingly, stationary, grid-scale or industrial lithium-ion BESS falling under tariff item 8507 60 00 are not covered by the exclusion applicable to "Power Bank" under the said Entry.

4. Difficulty faced, if any, in the implementation of the above clarification may be brought to the notice of the Board.

F. No. 190354/133/2025-TRU