Batteries for Electrical Vehicles under PMP with Duty @5%

·    Parts (Lithium-ion Cell and PCBA) @5%

·    Input for Parts at above @0%

·    Retaliatory Tariff Postponed on US Imports at Fifth Time to 2 March 2019

[Notification No. 03/2019-Customs dated 29 January 2019]

Seeks to further amend notification No. 50/2017-Customs dated 30th June, 2017 to prescribe effective BCD rate on Electric Vehicle (EV) and their specified part and raw material for manufacture of Lithium ion cells.

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, 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, 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, in the Table,

(i) against S. No. 495,

(a) in column (2), for the words “Any Chapter”, the figures “8507” shall be substituted;

(b)  in column (4), for the words “Nil”, the figures “5%” shall be substituted;

(ii) against S. No. 512, for the entry in column (3), the following entry shall be substituted, namely: -

“(a) Parts, components and accessories except: -

(i) Lithium ion cell (falling under tariff item 8507 60 00) and;

(ii) Printed Circuit Board Assembly (PCBA) (falling under tariff item 8507 90 90) for use in manufacture of lithium-ion batteries other than batteries of mobile handsets including cellular phones falling under tariff item 8507 60 00;

(b)   Sub-parts for use in manufacture of items mentioned at (a) above.”;

(iii) after S. No. 523 and the entries relating thereto, the following S. No. and entries shall be inserted, namely:-

(1)

(2)

(3)

(4)

(5)

(6)

“523 A.

Any Chapter

Parts, sub-parts, inputs or raw material for use in manufacture of Lithium ion cells falling under tariff item 8507 60 00

Nil

-

9”;

(iv) against S. No. 524, in column (3), after the words, “Motor vehicles”, the brackets and words “(excluding electrically operated vehicles)” shall be inserted;

(v) for S. No. 525 and the entries relating thereto, the following S. No. and entries shall be substituted, namely:-

(1)

(2)

(3)

(4)

(5)

(6)

525

8702 or 8704

Electrically operated vehicles, if imported, -

 

 

 

 

 

(1) As a Knocked Down kit containing all the necessary components, parts or subassemblies, for assembling a complete vehicle with, -

 

 

 

 

 

(a) disassembled Battery Pack, Motor, Motor Controller, Charger, Power Control Unit, Energy Monitor Contractor, Brake system, Electric Compressor not mounted on chassis;

10%

-

-

 

 

(b) pre-assembled Battery Pack, Motor, Motor Controller, Charger, Power Control Unit, Energy Monitor Contractor, Brake System, Electric Compressor not mounted on a chassis or a body assembly

15%

-

-

 

 

(2) in a form other than (1) above

25%

-

-

(vi) against S. No. 526, in column (3), after the words, “Motor vehicles and other motor vehicles”, the brackets and words “(excluding electrically operated vehicles)” shall be inserted;

(vii) after S. No. 526 and the entries relating thereto, the following S. No. and entries shall be inserted, namely:-

(1)

(2)

(3)

(4)

(5)

(6)

“526 A.

8703

Electrically operated Motor cars and other motor vehicles, principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars, if imported,-

 

 

 

 

 

(1) As a Knocked Down kit containing all the necessary components, parts or sub- assemblies, for assembling a complete vehicle, with,-

 

 

 

 

 

(a) disassembled Battery Pack, Motor, Motor Controller, Charger, Power Control Unit, Energy Monitor Contractor, Brake system, Electric Compressor not mounted on chassis;

10%

-

-

 

 

(b) pre-assembled Battery Pack, Motor, Motor Controller, Charger, Power Control Unit, Energy Monitor Contractor, Brake System, Electric compressor not mounted on a chassis or a body assembly.

15%

-

-

 

 

(2) In any other form,-

 

 

 

 

 

(a) with CIF value more than US$ 40,000

100%

-

-

 

 

(b) other than (a) above

60%

-

-“

(viii) for S. No. 527 and the entries relating thereto, the following S. No. and entries shall be substituted, namely:-

(1)

(2)

(3)

(4)

(5)

(6)

527

8507 60 00

Lithium ion cell for use in manufacture of Lithium ion accumulator other than the following, namely:-

(a) Battery pack of cellular mobile phone; and

(b) Power bank.

5%

-

9”;

(ix) against S. No. 528, in column (3),

(a) the entry against item No. (i) shall be omitted;

(b) after item (iv), the following items shall be inserted, namely: -

“(v) Power Control unit (inverter, AC/DC converter, condenser); (vi) Energy monitor;

(vii) Contactor;

(viii) Brake system for recovering; (ix) Electric Compressor”;

(x) after S. No. 528 and the entries relating thereto, the following S. No. and entries shall be substituted, namely:-

(1)

(2)

(3)

(4)

(5)

(6)

“528 A

8507

Battery pack for use in the manufacture of electrically operated vehicle or hybrid vehicle

5%

-

9”;

(xi) against S. No. 529, in column (3), the entry against item no. (i) shall be omitted;

(xii) against S. No. 531, in column (3), after the words, “an auxiliary motor,”, the brackets and words, “(excluding electrically operated motor cycles and cycles)” shall be inserted;

(xiii) after serial number 531 and the entries relating thereto, the following S. No. and entries shall be inserted, namely:-

(1)

(2)

(3)

(4)

(5)

(6)

531A

8711

Electrically operated motor cycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side cars, and side cars, if imported, -

 

 

 

 

 

(1) As a knocked down kit containing all the necessary components, parts or sub- assemblies, for assembling a complete vehicle, with,-

 

 

 

 

 

(a) disassembled Battery Pack, Motor, Motor Controller, Charger, Power Control Unit, Energy Monitor Contractor, Brake system, Electric Compressor not mounted on chassis;

10%

-

-

 

 

(b) pre-assembled Battery Pack, Motor, Motor Controller, Charger, Power Control Unit, Energy Monitor Contractor, Brake System, Electric compressor not mounted on a chassis or a body assembly

15%

-

-

 

 

(2) in a form other than (1) above

50%

-

-

2. In the third proviso, for the words and figures “31st day of January, 2019”, the words and figures “2nd day of March, 2019” shall be substituted;

3. This notification shall come into effect from the 30th day of January, 2019.

[F. No. 354/ 47 /2018- TRU]