10 per cent basic customs duty only on imported base stations

- Advertisement -

The government has imposed a 10 per cent basic customs duty (BCD) on imported fully built base stations but has kept parts used for making them outside the duty ambit, all aimed at giving a leg up to local manufacturing and the larger objective of Make in India.

Custom duty, imported base stations, India


Telecom service providers that typically bear cost of imports of telecom gear decried the move saying it would potentially ‘break the back’ of the industry already reeling under a debt of Rs 5 lakh crore. However, Telecom Equipment Manufacturer’s Association (TEMA) welcomed the move as it would give a fillip to local manufacturing.

- Advertisement -

Duty change, which has come into effect from July 1, makes imported base stations – used for relaying voice calls and data packets between towers – expensive by 10 per cent compared to those manufactured locally, in effect giving a duty differential incentivising indigenous assembly or production, under the purview of goods and services tax (GST) regime, the same way as done for imported smartphones.

The government said that it was ‘satisfied that the import duty leviable’ on telecom transmission equipment, specifically telephone sets and base stations, ‘should be increased and that circumstances exist which render it necessary to take immediate action’, in notices issued by the Central Board of Excise and Customs, on June 30. According to government officials, the decision was taken after holding consultations with the industry and stakeholders through an inter-ministerial committee (IMC) which was also taking the call on imposing duty in mobile phones, again to protect investments into local manufacturing.

Gear makers Huawei and Nokia said that they were ‘studying and evaluating implication currently’, and expected more clarity in coming days. Earlier, a 10 per cent levy was imposed only 4G or LTE base stations, but the new notification encompasses all base stations, without differentiating between 2G, 3G or 4G. Increase in customs duty is set to make network rollouts costlier as more than 90 per cent of telecom equipment including base stations is imported, as per industry data.

By Baishakhi Dutta

 

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

“AIC-T-Hub Aims To Grow Startups So More Indian Unicorns Can Contribute To The GDP”

0
T-Hub has collaborated with Atal Incubation Centre (AIC), initiated by the Atal Innovation Mission to incubate semiconductor startups, fostering innovation for India’s advancement in...

Pros And Cons: Boult’s Varun Gupta On Contract Electronics Manufacturing

0
While contract electronics manufacturing is not a new concept in India, it has lately picked up a pace never seen before. But what has...

Buzz

HCLTech to Take Over HPE’s Communication Tech Assets for $225M

0
IndianTech Giant HCLTech announces to expand its strategic partnership with Hewlett Packard Enterprise, buying the latter’s certain tech assets for $225M in cash.  IT service...

Unregistered Electronics Import Restricted, Commerce Ministry Reasserts

0
The Ministry of Commerce and Industry, Government of India reaffirmed the restriction laws of non-compliant IT hardware imports in an official notification issued on...

Google To Begin Pixel Production At Foxconn, Dixon In September

0
According to sources, Google's collaboration with Foxconn complements its plan to manufacture Pixel smartphones at the Dixon facility. Google is set to partner with Foxconn...

Important Sectors

HCLTech to Take Over HPE’s Communication Tech Assets for $225M

0
IndianTech Giant HCLTech announces to expand its strategic partnership with Hewlett Packard Enterprise, buying the latter’s certain tech assets for $225M in cash.  IT service...

Google To Begin Pixel Production At Foxconn, Dixon In September

0
According to sources, Google's collaboration with Foxconn complements its plan to manufacture Pixel smartphones at the Dixon facility. Google is set to partner with Foxconn...

ZEVO And Zen Mobility To Deliver 3,000 Zen Micro Pods Annually

0
The company claims that the Zen Micro Pod's innovative design, which features a 150kg payload capacity, a range of over 120 kilometres per charge,...

Kia Debuts EV3 Electric SUV

0
The EV3 incorporates a majority of the advanced interior technology found in Kia's flagship EV9 SUV. Kia has unveiled the all-new EV3 electric SUV as...

Marquardt’s Module Optimizes Battery Power And Ensures Safety

0
Marquardt is unveiling a new Cell Module Controller at the Battery Show in Stuttgart this June, designed for automotive, truck, and cell manufacturers. This...

Manufacturing

Google To Begin Pixel Production At Foxconn, Dixon In September

0
According to sources, Google's collaboration with Foxconn complements its plan to manufacture Pixel smartphones at the Dixon facility. Google is set to partner with Foxconn...

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

EVR Motors Discusses Tech Sharing With Indian OEMs

0
The Israel-based EVR Motors designs Radial Flux Permanent Magnet (RFPM) motors and licenses this technology for manufacturing by OEMs and component makers. EVR Motors, an...

Automotive Electronics Industry Growth Prospects And Strategies

0
From electric vehicles (EVs) to autonomous vehicles, discover the challenges, key players, and market segments driving a $136 billion industry revolutionising vehicles and the...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...