The exemption will be implemented with immediate effect.
The move is expected to reduce the cost of importing specialised equipment and parts that are not widely manufactured in India, while supporting investments in battery cell manufacturing, automotive electronics and advanced electronics assembly.
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The biggest change relates to lithium-ion battery manufacturing. The government has substantially expanded the list of machinery eligible for concessional customs duty by replacing the earlier entries under an existing exemption notification with a new list covering 85 types of equipment, including almost all machinery used in the manufacturing of lithium-ion batteries, according to a notification issued by the Central Board of Indirect Taxes and Customs (CBIC).
The revised list includes machines used across the battery manufacturing process, such as material mixing, coating, pressing, slitting, winding, stacking, electrolyte filling, welding, testing, ageing, inspection and packaging. It also covers supporting equipment such as solvent recovery, heat recovery, dust collection and effluent treatment systems.
The notification also specifies the customs tariff classification for each machine to provide greater clarity for importers.In a separate notification, the government has extended customs duty relief to five key components used in the manufacture of display assemblies for automotive, medical and industrial applications. These include display cells, flexible printed circuit assemblies (FPCAs), backlight units, frames and anisotropic conductive film (ACF).
The exemption does not apply to display assemblies used in mobile phones, smartwatches, televisions, smart meters or interactive flat-panel displays.
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The Centre has also granted customs duty concessions on six components used to manufacture inductor coil modules for wireless charging in mobile phones. These include nano-crystalline assemblies, E-shields, PET liners, PC shims, coils and neodymium magnets.
The CBIC has also provided technical definitions of these components to ensure uniform implementation.
Manufacturers importing the specified machinery or components will be eligible for the concessional duty, subject to the conditions laid down in the parent notifications.
The changes are in line with the government’s broader strategy to deepen domestic manufacturing and strengthen supply chains in sectors linked to electric mobility and electronics.