Duty Drawback Revised for the Mobile Phone Industry Expect a Boost in Exports

The increase in the Duty Drawback Cap per unit for mobile phones will help boost exports. The Duty Drawback on Mobile Phones has been increased from Rs. 197 to Rs. 350. The Department of Revenue has issued notification No. 07/2020 Customs (NT) dated 28th January 2020 stating the Duty Drawback Rate of ‘Cellular Mobile phones with or without accessories’. The Duty Drawback Rate is fixed at 4% with a cap per unit (piece) of Rs 350.

"ICEA has been relentlessly pursuing the Government of India to increase or introduce export benefits for the mobile phone industry. The increase in the Duty Drawback Cap has helped make exports more competitive. The All Industry Rate (AIR) of 4% with a cap of Rs. 350 is yet another step forward to build India as a global mobile phone manufacturing destination", says Mr. Pankaj Mohindroo, Chairman of India Cellular & Electronics Association.

ICEA’s objective has always been to improve the ‘Ease of Doing Business’ and lessen the cost burden on the industry to make it more competitive. The NPE, 2019 has a target of exports of 600 million units valued at USD 110 billion for 2025-26. This increase of the duty drawback cap from Rs 197 per unit to Rs. 350 per unit will encourage exports of mobile handsets from India and assist in meeting the NPE, 2019 export targets.

The export incentives for mobile handsets by GoI will further help in achieving the Hon'ble PM, Mr. Narendra Modi's vision of making India the no. 1 mobile manufacturing destination of the world and will also add to the growth of the nation's economy.