1. Import Duty on Key Telecom Equipment Hiked to 20% from 10% on the Lines of Mobile Phone Duty of 20 percent. Notification 74 dtd 11 Oct, 2018

Department of Revenue hiked the import duty on eight key items to 20 per cent from 10 percent. The Emergency powers to bypass Parliament were used for this.

The items are optical transport equipment, combination of one or more of packet optical transport product or switch, optical transport network products and IP radios, soft switches and VoIP equipment, packet transport node products, multi-protocol label switching transport profile products beside multiple input/multiple output and long term evolution products.

2.  PCBA assembly as parts of the above 8 items will face basic duty of 10 percent. However, parts of parts for manufacture are exempted. This is also on the lines of the policy of PCBA for mobile phones which faces a 10 percent import duty now.

The Centre has also imposed a 10 per cent import duty on the printed circuit board assembly (PCBA) of the eight telecom equipment. At present, there is no import duty on the PCBAs.

These, too, come into effect from 12 October.

The notification further said imported goods shall not be used in the manufacture of the eight items.

If there is any violation, the manufacturer will be liable to pay an amount equal to the difference between the duty leviable on the imported goods but for the exemption under this notification and that already paid at the time of importation.

[Notification No. 74/2018–Customs dated 11 October, 2018]

WHEREAS the Central Government on being satisfied that the import duty leviable on goods, falling under Chapter 85 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), should be increased and that circumstances exist which render it necessary to take immediate action.

NOW, therefore, in exercise of the powers conferred by sub-section (1) of section 8A of the said Customs Tariff Act, the Central Government hereby directs that the First Schedule to the said Customs Tariff Act shall be amended in the following manner, namely: -

In the First Schedule to the said Customs Tariff Act, in Section XVI, in Chapter 85, against tariff items 8517 61 00 and 8517 69 90, for the entry in column (4), the entry “20%” shall be substituted.

2. This notification shall be effective from the 12th October, 2018.

[F.No.354/374/2018-TRU]

Revised Text

8517 61 00

--

Base stations

u

10

20

 

18

43.960

30.980

8517 69 90

----

Other

u

10

20

 

18

43.960

30.980