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Dated: 08.04.2025

CBIC Clarification on Customs Duty for Interactive Flat Panel Displays (IFPDs) and Monitors

In a recent clarification issued through Circular No. 12/2025 dated April 7, 2025, the Central Board of Indirect Taxes and Customs (CBIC), under the Ministry of Finance, has provided essential guidelines concerning the classification and applicable Basic Customs Duty (BCD) on Interactive Flat Panel Displays (IFPDs) and other monitors.

Background:

Previously, all items under tariff item 85285900 attracted a uniform BCD of 10%. However, the Budget of 2025-26 increased the customs duty on IFPDs to 20% effective from February 2, 2025, aiming to differentiate them from regular monitors. Regular monitors continued at a lower rate of 10% BCD to prevent the circumvention of higher duties.

Key Clarifications:

1. Removal of IGCR Condition:

• Initially, monitors classified under 85285900 were subject to Import of Goods at Concessional Rate (IGCR) conditions, which required usage in manufacturing. However, acknowledging the industry concerns, CBIC removed this IGCR requirement via Notification No. 23/2025-Customs dated April 4, 2025.

2. Differentiation between Monitors and IFPDs:

• To clearly demarcate IFPDs from regular monitors, the Ministry of Electronics and Information Technology (MeitY) has defined distinct technical characteristics:
• Touch Capability: IFPDs have multi-touch support; regular monitors are non-touch.
• Screen Size: IFPDs typically range from 55″ to 110″, while monitors are generally 15″ to 43″.
• Resolution: IFPDs offer 4K or higher resolution, whereas regular monitors range from HD to 4K.
• Interactivity: IFPDs include touch, stylus, and gesture control, unlike monitors limited to keyboard and mouse input.
• Built-in Software: Exclusive to IFPDs, incorporating interactive software tools.
• Speakers and Power: IFPDs come with high-quality built-in speakers and higher wattage (198W-400W), compared to monitors requiring external speakers and lower wattage (25W-50W).

3. Uniform Tariff Classification:

• Both IFPDs and other monitors are now uniformly classified under tariff item 85285900.
• Parts specific to IFPDs such as Touch Glass Sheets and Touch Sensor PCBs fall under HS 8529 with a lower duty rate of 5%.

Implementation:

Customs officers and stakeholders are urged to adhere strictly to these guidelines to ensure consistent application of tariff classifications and duty rates.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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Source: CBIC, Ministry of Finance, Govt. of India

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