Govt cuts custom duty on components used in electronics, batteries manufacturing
10/07/2026
new delhi, JUl 9: The government has reduced import costs for a variety of components and capital products used in the production of electronics and batteries by issuing three customs notifications, offering basic customs duty (BCD) exemptions on specific inputs and machinery.
The notifications, which were released on July 8, increase the list of machinery that qualifies for concessional duty for the production of lithium-ion cells while extending duty relief for parts used in wireless charging modules and display assemblies. The move is intended to boost domestic value addition in electronics and electric mobility while also increasing cost competitiveness.
Five components used in the production of display assemblies for automotive, medical, and industrial applications are exempt from BCD until March 31, 2029, according to one notification. These consist of anisotropic conductive film (ACF), frames, backlight units, cells, and flexible printed circuit assemblies (FPCAs).
However, display assemblies for smartphones, smartwatches, smart meters, TV panels, and interactive flat-panel displays are not covered by the exemption. In another notification, the center has extended the zero-customs tax term for six components used in the production of inductor coil modules for wireless charging in cellular mobile phones until March 31, 2029. Neodymium-iron-boron (NdFeB) magnets, E-shields, PET liners, PC shims, stranded and NFC coils, and nano-crystalline assemblies are some of them.
Additionally, the government has released a third notification that expands the list of 85 capital goods that qualify for a concessional customs duty on machinery used in the production of lithium-ion cells. Coating machines, winding machines, welding systems, testing equipment, forming machines, drying systems, and other specialized manufacturing equipment required during the production of lithium-ion cells are all included in the updated list.
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