𝐒 𝐉 𝐄𝐗𝐈𝐌 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬

“Indirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisory”

Dated: 09.07.2026

Government of India Amends Customs Tariff for Display Assembly Manufacturing

The Ministry of Finance, Government of India, has issued Notification No. 25/2026-Customs, introducing significant amendments to the customs tariff structure to support the manufacturing of display assemblies for automotive, medical, and industrial applications. This move is aimed at boosting domestic manufacturing and fostering technological advancement in key sectors.

Key Highlights of the Notification

1. New Customs Tariff Entry Introduced
   • A new serial number, 296A, has been added to the customs notification, specifically covering certain goods used in the manufacture of display assemblies (classified under heading 8524).
   • The relevant tariff codes are 3919 90 90 and 8529 90 90.
2. Goods Eligible for Concessional Customs Duty
   • The following components, when imported for use in manufacturing display assemblies for automotive, medical, or industrial applications, are now eligible for a Nil customs duty rate:
     1. Cell
     2. Flexible Printed Circuit Assembly (FPCA)
     3. Backlight Unit
     4. Frame
     5. Anisotropic Conductive Film (ACF)
3. Scope and Exclusions
   • The concessional rate does not apply to display assemblies for:

3. Cellular mobile phones
4. Wrist wearable devices (smart watches)
5. LCD or backlight for LCD of smart meters
6. LCD and LED TV panels
7. Interactive Flat Panel Display (IFPD) Modules

3. This ensures the benefit is targeted at industrial, automotive, and medical device manufacturing, not consumer electronics.
4. Sunset Clause
   • The notification includes a sunset provision: the concessional customs duty will be in effect only until 31st March, 2029. After this date, the benefit will cease unless further extended or amended by the government.

Implications for Industry

• Boost to Domestic Manufacturing: By reducing input costs for key components, the policy encourages local assembly and value addition in high-tech sectors.
• Targeted Incentives: The exclusions ensure that the benefit is focused on strategic sectors rather than mass-market consumer electronics, aligning with broader industrial policy goals.
• Time-Bound Opportunity: Manufacturers have a clear window until March 2029 to capitalize on these incentives, encouraging timely investment and capacity building.

Conclusion

This amendment to the customs tariff is a strategic step by the Indian government to promote advanced manufacturing in automotive, medical, and industrial electronics. Stakeholders in these sectors should review their supply chains and consider leveraging the concessional duty regime before the sunset date.

Listen to this on our #YouTube Channel

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.

We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!

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

Disclaimer

Handy Download:

Connect with us for more-

@ Team S J EXIM SERVICES, New Delhi, IN

CP: Ms. Shubhra Jha, Founder

Tel: +91-11-4999 2707 I +91-9999005693

Web: www.sjexim.services

EMAIL: operations@sjexim.services  I shubhra@sjexim.services

Facebook: www.facebook.com/sjeximservices

LinkedIn: https://www.linkedin.com/company/90794255/admin/feed/posts/

YouTube: https://www.youtube.com/@sjeximIndia

Subscribe our WhatsApp Channel: https://whatsapp.com/channel/0029VaTxDT8JZg4CHEOSoK47

Subscribe our Telegram Channel: https://t.me/sjeximindia