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20% import duty announced by the Centre on key telecom equipment

Believed to be a move that will boost the domestic industry, the Centre has raised the import duty on several telecom equipment.


The Finance Ministry has announced the hike in import duty on eight key items to 20 per cent from 10 per cent, in three separate notifications.


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


The new rates on all the items will come into effect from today, October 12.


The notification further said that imported goods shall not be used in the manufacture of the eight items. In case of 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 said while also adding that it will also help in curbing the outflow of foreign exchange.

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