Economy

Centre hikes import duty on key telecom equipment to 20%

Our Bureau New Delhi | Updated on October 11, 2018 Published on October 11, 2018

Move seen to give a leg up to domestic manufacturers

In a move that will boost the domestic industry, the Centre has hiked the import duty on several telecom equipment.

In three separate notifications, issued late in the evening on Thursday, the Finance Ministry hiked the import duty on eight key items to 20 per cent from 10 per cent.

The items are optical transport equipment, combination of one or more of packet optical transport product or switch, optical transport network products and IP radios, soft switches and VoIP equipment, packet transport node products, multi-protocol label switching transport profile products beside multiple input/multiple output and long term evolution products.

The new rates will come into effect on October 12.

Introduces duty

The Centre has also imposed a 10 per cent import dutyon the printed circuit board assembly (PCBA) of the eight telecom equipments. At present, there is no import duty on the PCBAs.

These, too, come into effect tomorrow.

The notification further said imported goods shall not be used in the manufacture of the eight items.

If there is any violation, the manufacturer will be liable to pay an amount equal to the difference between the duty leviable on the imported goods but for the exemption under this/her notification and that already paid at the time of importation.

“The new measures will boost Make in India,” a senior Finance Ministry official told BusinessLine, adding that it will also help in curbing the outflow of foreign exchange.

Published on October 11, 2018
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