22 July 2019
INDIA: Budget Cuts Duty on Electric Vehicle Parts and Increases Levy on Precious Metals
In a bid to promote the manufacture of electric vehicles in the country, the government has announced exemptions from the 10% Basic Customs Duty (BCD) for certain imported components, including e-drive assemblies, on-board chargers, e-compressors and charging guns. The change was announced as part of the country’s 2019 Budget and came into effect on 6 July.
The budget also saw BCD increased on a number of items, including certain auto parts and precious metals, with these hikes also coming into effect as of 6 July. These changes form part of a bid to curtail the level of non-essential imports and boost domestic production in line with the aims of the Make-in-India initiative.
Details of the amended duty rates most likely to affect Hong Kong exporters are listed in the table below, while the full list of revised rates can be accessed here.
|Description of Goods/Products||BCD before |
6 July 2019
|BCD effective |
6 July 2019
|Glass mirrors, including rear view mirrors||10%||15%|
|Base metal fittings, mountings and similar items for use as vehicle hinges||10%||15%|
|Oil or petrol filters/air intake filters for internal combustion engines||7.5%||10%|
|Chassis fitted with engine||10%||15%|
|Precious metals (other than rhodium) unwrought or in semi-manufactured forms or in powder form or base metal clad with such metals||10%||12.5%|
|Silver doré bars (with silver content not exceeding 95%)||8.5%||11%|
|Gold doré bars (with gold content not exceeding 95%)||9.35%||11.85%|
|Indoor and outdoor split-system air conditioner units||10%||20%|
|Digital video recorders (DVR) and network video recorders (NVR)||15%||20%|
|CCTV cameras and IP cameras||15%||20%|
|Optical fibres, optical fibre bundles and cables||10%||15%|
|Charger/power adaptors for CCTV cameras/IP cameras and DVRs/NVRs||0%||15%|