2 Feb 2018
INDIA: Customs Duty Raised on Phones, Auto Parts, Jewellery, Sunglasses and Toys
The Indian government has raised the Basic Customs Duty (BCD) on a range of imported products, including mobile phones, toys, watches, footwear, imitation jewellery as well as certain specified precious stones, auto parts, and cosmetic items. The changes, all featuring in India’s 2018 Budget, come as part of a government bid to curtail imports and boost domestic production in line with the aims of the Make-in-India initiative.
Other significant changes introduced in the budget include a 10% long-term capital gains tax on all profits of more than INR100,000 (US$1,565) made from shares held for 12 months or more. In another move, companies with an annual turnover of INR2.5 billion or less will be eligible to pay corporate income tax (CIT) at the reduced rate of 25%, 5% lower than the standard rate. The 25% CIT rate previously only applied to companies with an annual turnover of INR500 million or less.
Details of the amended duty rates most likely to affect Hong Kong exporters are listed in the table below, while the full list of the revised rates can be accessed here.
Description of goods/products
BCD before 2 February 2018
BCD effective 2 February 2018
Specified parts and accessories of mobile phones, including batteries, chargers and adapters
Specified LCD/LED/OLED television panels and parts
Specified auto parts, including spark ignition engines, compression ignition engines, crank shafts, electrical ignition equipment and cut-outs
Cut and polished coloured gemstones and diamonds
Specified cosmetic products, including perfumes, make-up and skin-care items, and toiletries
Wrist watches, clocks, and wrist wearable devices (smart watches)