12/2025 : Clarification on the classification and applicable Basic Customs Duty (BCD) for Interactive Flat Panel Displays (IFPDs) and other monitors

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Circular No. 12/2025-Customs CBIC-190354/47/2025-TRU Section-CBEC Government of India Ministry of Finance Department of Revenue Tax Research Unit North Block, New Delhi Dated: 07th April, 2025 To, All Principal Chief Commissioner/Chief Commissioner of Customs/Customs (Preventive), All Principal Chief Commissioner/Chief Commissioner of Customs & Central Tax, All Principal Commissioner/Commissioner of Customs/Customs (Preventive), All Principal Commissioner/Commissioner of Customs & Central Tax, All Principal Director Generals/Director Generals under CBIC. Subject: Clarification on the classification and applicable Basic Customs Duty (BCD) on Interactive Flat Panel Displays (IFPDs) and other monitors - reg. Madam/Sir, Prior to 2025-26 Budget, all goods classified under tariff item 85285900 attracted Basic Customs Duty (BCD) of 10%. In the 2025-26 Budget, BCD on Interactive Flat Panel Displays (IFPDs) classified under tariff item 85285900 was increased from 10% to 20% with effect from 2nd February, 2025 vide Section 103 (a) read with Second Schedule of the Finance Act , 2025 and declaration under the Provisional Collection of Taxes Act, 2023. However, all goods classified under tariff item 85285900 other than IFPD was continued at 10% BCD with IGCR condition vide entry at S. No. 515C of the Notification No. 50/2017-Customs dated 30.06.2017. This was to prevent circumvention of the higher duty on IFPDs . The intent was not to charge 20% on monitors other than IFPDs. 2. Industry associations have sought clarification regarding compliance with IGCR condition under said entry at S. No. 515C of the Notification No. 50/2017-Customs since the imported monitors are not used in further manufacturing activity. After examining the issue, vide Notification No. 23/2025-Customs dated 04.04.2025, the entry at S. No. 515C of the Notification No. 50/2017-Customs dated 30.06.2017 has been amended to remove the IGCR condition. For distinguishing IFPDs from monitors other than IFPDs, based on the technical inputs from Ministry of Electronics and Information Technology (MeitY) received vide their OM dated 13.03.2025, the following may be used as a technical guide : Feature Monitors (other than IFPDs) Interactive Flat Panel Displays (IFPDs) Touch Capability Non-touch Touch-enabled (multi-touch support) Screen Size Typically, 15" to 43" Typically, 55" to 110" Resolution HD to 4K 4K or higher Interactivity Limited to keyboard/mouse input Touch, stylus input, and gesture control Built-in Software No built-in software Includes interactive software tools Built-in Speakers External speakers needed Includes high-quality built-in speakers Wattage Typically, 25W-50W Typically, 198W-400W Input Power DC power (Adaptor) AC power 3.    References have also been received from field formations and Industry association seeking clarification regarding the appropriate classification of the IFPDs vis-a vis monitors, other than IFPDs and parts of IFPDs, in light of inconsistency in classification practice of such goods. To ensure uniformity in tariff classification of the IFPDs and other monitors, it is hereby clarified that both IFPDs and monitors other than IFPDs are classifiable under tariff item 85285900. It is further clarified that parts of IFPDs, such as Touch Glass Sheets and Touch Sensor PCBs, shall be classified under HS 8529 attracting BCD rate of 5% as per entry at Sr. No. 515D of the Notification No. 50/2017-Customs dated 30.06.2017. 4.   Difficulties, if any, faced in the implementation of these instructions may be brought to the notice of the Board. 5. Hindi version will follow. Yours faithfully, Kumar Vivek Technical Officer (TRU-I)