The government has exempted 35 machine parts used for manufacturing mobile phone components from the basic customs duty to promote handset production in the country, according to an official notification.
In a notification dated September 28, the finance ministry exempted items such as printed circuit board (commonly known as motherboard) coating machine, PCB assembly loader, unloader from the customs duty.
These 35 capital goods are used for making mobile phone components such as lithium-ion battery, speaker and receiver of mobile phones, data cables, optical fibre etc.
Industry body Indian Cellular and Electronics Association while appreciating the notification to exempt 35 capital goods said that all the goods in the new list have HS Codes(codes required for imports) at eight-digit tariff level in them which will aid fast customs clearance.
"Basic duty on the 35 items which currently range from 7.5 to 10 per cent is now fully exempted. IGST will be applicable on the imports but this can be set off against GST," ICEA National President Pankaj Mohindroo said.
He said that essentially, the focus in the amendment is to cover manufacture of parts for mobile handsets, speaker and receiver, data cables, optical cables, PCBs and PCBAs. All these are under the notified phased manufacturing programme.
"The Association looks forward to the manufacturing of parts in the phased manufacturing programme," Mohindroo said.