15% Customs Duty On Display Assembly Of A Cellular Mobile Phone: CBIC

The Ministry of Electronics and Information Technology (MeitY) stated that if the display assembly of a cellular mobile phone comes merely with a back support frame of metal or plastic and no other additional items, then the assembly may be subjected to BCD as the display assembly of a cellular mobile phone at 10%. However, since the back support frame of metal or plastic does not add any functional part but is only for support of the display assembly, Meity agreed and reiterated that if a display assembly comes with additional parts such as mechanics or other items/sub-assemblies in the form of an assembly, the whole assembly is liable to attract BCD at the rate of 15% as general parts of a cellular mobile phone under tariff item 8517 79 90.

The Display Assembly of a cellular mobile phone consists of a Touch Panel, Cover Glass, Brightness Enhancement Film, Indicator Guide Light, Reflector, LED Backlight, Polarizers, and LCD Driver mounted on a Flexible Printed Circuit (FPC), specifically needed for rendering display functions. The display also consists of LCM (Liquid Crystal Module or LCD Module) [which consists of LCD (Liquid Crystal Display) Cell/pure Cell, FOG (FPC on Glass), and COG (Chip on Glass)] or OLED Module

The MeitY has stated that the display assembly comes merely with a back support frame of metal or plastic attached to it. An assembly should be treated as a display assembly of a cellular mobile phone, attracting a BCD rate of 10%.

The display assembly of a cellular mobile phone may be imported with or without the back support frame of metal or plastic fitted in the assembly. Although the back support frame of metal or plastic has no essential function in display and only provides strength, protection, and structural stability, the mere attachment of the back support frame of metal or plastic to the display assembly does not alter the essential characteristics of the display in any manner, and the assembly would continue to be treated as a display assembly of a cellular mobile phone.

"Therefore, if the display assembly of a mobile phone is imported with merely a back support frame of metal or plastic attached to it, the assembly continues to be a display assembly of a cellular mobile phone and a BCD rate of 10% shall be applied to such an assembly consisting of the display assembly and only the back support frame of metal or plastic. In addition, the back support frame of metal or plastic, if imported individually, will attract a BCD rate of 15%," the CBIC stated.

If any other item, like the sim tray, antenna pin, speaker net, power key, slider switch, battery compartment, flexible printed circuits for volume, power, sensors, speakers, finger print etc, comes fitted along with a display assembly with or without a back support frame of metal or plastic, then the whole assembly attracts a BCD rate of 15%.

Circular No. 14/2022-Customs

Dated: 18.08.2022

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