Indian Government Hikes Custom Import Duty on Communication Items

Last year in the month of October, the government has hiked the Custom Import Duty on certain communication products like base stations up to 20% in order to check out a widening recent account shortfall by curbing imports. Increased duties on products have effected from October 12, 2018. This is the 2nd round of this tax hike announced by the Indian government overnight. Import duty tax has been enhanced on certain input used in the communication industry including PCBA (Printer Circuit Board Assembly).

This tax on stuffed, populated or loaded printed circuit boards of all products other than cell phones, optical transport equipment, and the base station has been hiked to 10%.

In addition to this, Custom Import Duty has been also increased to 20 percent from 10 percent for base stations as well as for machines for the receptions along with many more products like digital loop carrier multiplexers & systems, transmission & conversion or regeneration of voice, routing & switching apparatus, and voice frequency telegraphy.

Chapter 85 includes these kinds of products such as sound recorders, electrical equipment & machinery, television image records along with their parts.

In September 2018, the government had doubled the import duty on nineteen products such as washing machines (less than ten kg), household refrigerators and air conditioners to 20%.

Those people who are not aware, there are several types of Custom Import Duty and some of them have listed below.

• Basic Customs Duty- It is the duty levied on the value of the products at a specific rate. It is fixed at a specified rate of ad-valorem basis.

• Countervailing Duty- This is levied by the Central government of India when a nation is paying the subsidy to the suppliers who are exporting products to India.

• Additional Customs Duty- It is charged to bring imports on an equal track with the products manufactured or produced in India.

• Safeguard Duty- This one is levied to safeguard the interest of our local domestic industries to make sure the no harm is caused to the domestic industries in India.

If you want to get an updated list of Custom Import Duty, then you need to consult market research firms. These firms not just provide relevant information about this tax but also give accurate GST Tax Rate list.