Zero Duty under ITA Goods and their Manufacture I

·  There is no IGST exemption on the goods in this notification.

[Customs Notification No. 24 dated 1st March 2005]

·  There is no IGST exemption on the goods in this notification.

Four groups of telecom products under subheadings 85176290 and subheading 85176990, the basic duty has gone up to 10% from NIL, under the IT Agreement. The Government claims that these products are not covered by the IT Agreement signed in 1996 which requires zero duty. These goods are of post 1996 IT Agreement origin. Please note that all goods for the manufacture of the four groups cited above is at zero duty. (Please see SNo. 13 and SNo. 40 in Notification 24/01.03.2005 below as amended by 11/11.07.2014 w.e.f. 11.07.2014; 19/01.03.2016 – SNo. 39 substituted). - Ed.

67/31.12.2016 - HS2017 changes incorporated

58/30.06.2017 - SNos. 2, 4 and 13 substituted and SNo. 40 omitted. Basic duty on mobile phones imposed;

36/30.12.2019 - HS Codes amendments incorporated

06/02.02.2020 - SNo. 39 amended

[57/29.12.2021 - HS2022 Changes w.e.f. 1 Jan 2022 incorporated]

Budget 2022: Printed Circuit Board Assembly (PCBA), falling under tariff item 8517 79 10, for wrist wearable devices is being excluded from the BCD exemption contained in S. No. 13S of notification No. 24/2005-Customs as the BCD rates on PCBA for wrist wearable devices will now be governed by notification No. 11/2022-Customs dated 1st February 2022 [S. No. 2(i) of notification No. 15/2022-Customs dated 1st February 2022 refers].

Ntfn 24        In exercise of the powers conferred by sub-section (1) of
01.03.2005  section 25 of the Customs Act, 1962 (52 of 1962), the Central
                    Government, on being satisfied that it is necessary in the public

interest so to do, hereby exempts the following goods of the description as specified in column (3) of the Table below and falling under the heading, sub-heading or tariff-item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as specified in the corresponding entry in column (2) of the said Table, when imported into India, from the whole of the duty of customs leviable thereon under the said First Schedule, namely:-

Table

SNo. Heading, sub-heading                      Description
          or tariff item

1        2    3

1        3818 00          All goods

2.       8443 31 00 or           All goods
          8443 32 00

2A     8443 32 10    All goods

2B     8443 32 20    All goods

2C     8443 32 30    All goods

2D     8443 32 40    All goods

2E     8443 32 50    All goods

2F     8443 32 60    All goods

3        8443 39          (a) Electrostatic photocopying apparatus, operating by
                                   reproducing the original image directly onto the copy
                                   (direct process ); and

                                   (b) Photocopying apparatus, other than electrostatic,
                                   incorporating an optical system

4.       8443 99          Parts and accessories of the following goods
          (except           (except Ink cartridges, with print head assembly; Ink
          8443 99 51,   cartridges, without print head assembly; Ink spray 
          8443 99 52,   nozzle) namely:-
          8443 99 53)   (a) All goods falling under tariff items 8443 31 00;
                                   8443 32 10, 8443 32 20, 8443 32 30, 8443 32 40,
                                   8443 32 50, 8443 32 60;
                                   (b) Electrostatic photocopying apparatus, operating
                                   by reproducing the original image directly onto the
                                   copy (direct process); and
                                   (c) Photocopying apparatus, other than electrostatic,
                                   incorporating an optical system

5        8456  90 10   Machine tools for dry etching pattern on semi
          or 8486 20     conductor material

6        8472  90 91   All goods

7        8470               All goods

8        8471               All goods

9        8473 21 00 or           All goods
          8473 29 00

10     8473 30          All goods

11     8473 50 00    All goods

12     8486 20 00    Apparatus for the projection or drawing of circuit
                patterns on sensitized semiconductor materials

13     8517               [SNo. 13, Item description amended by 11/11.07.2014]

13A   8517 11 10     All goods

13B   8517 11 90     All goods

13C   8517 18 10     All goods

13D   8517 18 90     All goods

13E   8517 62 10     All goods

13F   8517 62 20     All goods

13G 8517 62 30     All goods

13H   8517 62 40     All goods

13I    8517 62 50     All goods

13J   8517 62 60     All goods

13K   8517 62 70     All goods

13L   8517 69 10     All goods

13M 8517 69 20     All goods

13N   8517 62 90    Routers All goods
          8517 69 30

          [36/30.12.2019 - SNo. 13N amended]

13O 8517 69 40     All goods

13P   8517 69 50     All goods

13Q 8517 69 60     All goods

13R   8517 69 70     All goods

13S   8517 79 10    All goods other than Printed Circuit Board Assembly
          8517 70 10    (PCBA) of following goods, namely: -

                (a)              Cellular mobile phones

                (b)              Base station

                (c)              Optical transport equipment

                (d)              Combination of one or more of Packet Optical
                                   Transport Product or Switch (POTP or POTS)

                (e)              Optical Transport Network (OTN) products

                (f)               IP Radios

                (g)              Soft switches and Voice over Internet Protocol
                                   (VoIP) equipment, namely, VoIP phones, media
                                   gateways, gateway controllers and session border
                                   controllers;

                (h)              Carrier Ethernet Switch, Packet Transport Node
                                   (PTN) products, Multiprotocol Label Switching-
                                   Transport Profile (MPLS-TP) products;

                (i)               Multiple Input/Multiple Output (MIMO) products;

                (j)               Long Term Evolution (LTE) products.

                (k)              Wrist wearable devices (commonly known as
                                   smart watches)
                [15/01.02.2022 - Item 13S(j) inserted w.e.f. 1st day of
                April 2022]

Subject to the condition that the importer follows the procedure set out in the Customs (Imports of Goods at Concessional Rate of Duty) Rules 2017 and at the time of importation of the above goods furnishes an undertaking to the Deputy Commissioner of Customs or the Assistant Commissioner of the Customs, as the case may be to the effect that, -

(A) imported goods shall not be used in the manufacture of goods mentioned at (b) to (i) above;

(B) in the event of failure to comply with (A) above, he shall 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.”

                All goods other than Printed Circuit Board Assembly
                (PCBA) of cellular mobile phones

                [05/01.02.2021; 76/11.10.2018; 38/02.04.2018 -
                SNo. 13S amended]
                [57/29.12.2021 - HS2022 Changes
                w.e.f. 1 Jan 2022 incorporated]

14     8519 81 00     Telephone Answering Machines
          8519 50 00    All goods

15     8523               (a) All prepared unrecorded media for sound
                recording or similar recording of other phenomena,
                other than cards incorporating a magnetic stripe

                (b) Recorded media for reproducing phenomena
                other than sound or image 

16     8525 60 00    All goods

17     8528 42 or     All goods of a kind solely or principallu used in an
          8528 52 or     automatic data processing system of heading 8471
          8528 62

18     8529 90 90    Parts and accessories of goods of a kind solely or
                principally used in an automatic data processing
                system of heading 8471
                [SNos. 17 and 18 substituted by 67/31.12.2016]

19     8531 20 00    All goods

20     8532               All goods

21     8533               All goods

22     8534 00 00    All goods

23     8541 (except All goods other than Photovoltaic cells whether or not
          8541 42 00 or           assembled in modules or made up into panels
          8541 43 00)
          [15/01.02.2022 - SNo. 23 substituted w.e.f. 1st day of April 2022]

24     8542 or           Electronic Integrated circuits
          8523 52

25     8543 10 10 or           Ion Implanters for doping semi conductor material
          8486 20

26     8543 70 11     Proximity cards and Tags
          or 8523 59

27     8543 90 or     Electronic Microassemblies
          8548 00 00 90

28     8544 70          All goods

29     8524 or           Liquid crystal devices All goods
          9013 80 00 10

30     8529 to           Parts of liquid crystal devices All goods
          9013 90 00 10

31     9026               All goods

32     9027 20 00    All goods

33     9027 30          All goods

34     9027 50          All goods

35     9027 81 or     All goods
          9027 89 9027 80

36     9030 40 00    All goods

37     9030 82 00    All goods

38     9031 41 00    All goods

38A   8541 42 00 or           All goods for use solely and exclusively with goods
          8541 43 00    covered under S.Nos. 1 to 38.
          [15/01.02.2022 - SNo. 38A inserted w.e.f. 1st day of April 2022]

39     All Chapters  All goods except charger or adapter, battery, wired
          except            headsets and speakers of mobile handsets including
          Chapter 74    cellular phones and solar tempered glass or solar
                tempered (anti-reflective coated) glass for the
                manufacture of goods covered  by S.Nos. 1 to 38
                above, provided that the importer  follows the
                procedure set out in the Customs (Import of Goods
                at Concessional Rate of Duty) for Manufac-
                ture of Excisable Goods) Rules, 2017 1996.

[57/29.12.2021 - SNos. 13S, 14, 27, 29, 30, 35 and 39 amended - HS2022 Changes w.e.f. 1 Jan 2022 incorporated]

06/02.02.2020 - SNo. 39 amended - in column 2 the words "except Chapter 74" inserted; 32/05.05.2016- The words in strikethrough omitted;
19/01.03.2016 – SNo. 39 substituted]

40      SNo. 40 omitted by 58/30.06.2017

2. This notification shall come into force with effect from the 1st January, 2007.

[Table substituted by 132/30.12.2006; SNo. 40  inserted by 11/11.07.2014; SNo. 2, 4, 13 substituted and SNo. 40 omitted by 58/30.06.2017]