NEW DELHI: The Central Board of Indirect Taxes and Customs (CBIC) has imposed basic customs duty (BCD) on lithium ion cells and printed circuit boards used in production of battery pack of mobile phones by 5% and 10%, respectively, an official notification said. Both the items were not subject to BCD till now.

The changes are effective from Wednesday, said the notification. The move is aimed at encouraging domestic production of these items by giving effective tariff protection against imports. The customs duty on imports is expected to give locally produced battery packs an edge in cost competitiveness.

Experts said the move was in line with the government’s ‘Make in India’ drive that aims to improve domestic mobile handset manufacturing ecosystem and that there could be changes expected in the basic customs duty rates on display assembly, touch panel and other parts in the future. “Businesses may need to strategize their future plans in line with these changes," said Pratik Jain, partner and leader of indirect tax, PwC India.

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