Government Extends Customs Duty Relief on Goods Used in Lithium-Ion Cell Manufacturing Until March 2029

The Centre has exempted basic customs duty (BCD) on specified goods used in the manufacture of lithium-ion cells, display assemblies and wireless charging inductor coil modules, as per news reports.  

The Ministry of Finance issued three separate notifications to implement the changes with immediate effect. The exemptions will remain in force until March 31, 2029, according to the notifications. 

The revised provisions apply to machinery and components imported for eligible manufacturing activities and extend customs duty benefits available to parts of the electronics manufacturing sector. 

Larger List of Eligible Battery Equipment 

The most notable change relates to lithium-ion battery manufacturing. The earlier list of eligible machinery has been replaced with a revised schedule covering 85 categories of equipment, according to notifications issued by the Central Board of Indirect Taxes and Customs (CBIC). 

The list includes machinery used throughout the manufacturing process, including powder preparation, slurry mixing, coating, calendering, slitting, electrode stacking, winding, electrolyte filling, laser welding, formation, ageing, testing, inspection and final packaging.  

Relief for Display and Charging Components 

Separate customs duty relief has also been notified for five components used in the manufacture of display assemblies for automotive, medical and industrial electronics.  

The exemption does not extend to display assemblies used in mobile phones, smartwatches, televisions, smart meters or interactive flat-panel displays. 

In another notification, the government has provided concessional customs duty on six components used to manufacture wireless charging inductor coil modules for smartphones. 

Implementation and Scope 

The CBIC has assigned customs tariff classifications and technical descriptions for the notified machinery and components to facilitate implementation at customs ports.  

Manufacturers importing the specified equipment or parts can claim the concession subject to the conditions prescribed under the respective notifications. 

Read More: Odisha Government Approves ₹2,000 Crore Deep Sea Fishing Initiative to Boost Marine Exports! 

Conclusion 

The notifications expand the list of eligible machinery and components for customs duty relief across battery manufacturing and selected electronics segments. The exemptions are applicable with immediate effect and remain in force until March 31, 2029. 

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