Govt levies 10% import duty on ‘static converter for cellular phones’

The Dollar Business Bureau

The government has levied a customs duty of 10% on the imports of static converter for cellular mobile phones such as USB cables.

Until now, these goods were exempted from the purview of basic customs duty.

The term 'static converter for cellular mobile phones' is used for phone charging cables that can be used for accessing and transferring handset data to a laptop, computer, tablet or TV.

The Revenue Department, in a notification (no.67/2017-Customs, dated July 14, 2017), said, “The Central Government, on being satisfied that it is necessary in the public interest so to do, hereby amends that……exempt goods would include “static converters for automatic data processing machines and units thereof, and telecommunication apparatus, other than static converters for cellular mobile phones”.

With this notification, the import of static converters into the country will now attract the same customs duty of 10% as being imposed on the imports of mobile chargers.

Pankaj Mohindroo, National President, Indian Cellular Association said this move shows the commitment of the Government towards phased manufacturing scheme, which is designed to encourage the domestic ecosystem for manufacturing mobile phones in the country.

“We appreciate quick action by the Revenue Department in plugging this loophole in the definition of static converter for cellular phones as this was impacting the mobile charger segment,” he said.

India imported around $936.4 million worth of static converters during 2016-17. The imports of static converters stood at $97.62 million during the April-June period of 2017-18.