CBIC Clarifies 10% Customs Duty Eligibility for Stationary Battery Energy Storage Systems

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Dated: 10.10.2026

CBIC Clarifies 10% Customs Duty Eligibility for Stationary Battery Energy Storage Systems

India’s customs authorities have confirmed that stationary, grid-scale and industrial lithium-ion Battery Energy Storage Systems (BESS) are not “power banks” for the purpose of the concessional customs-duty entry under tariff item 8507 60 00.

Key clarification

Circular No. 45/2026-Customs addresses inconsistent assessment practices in which some field formations treated stationary or industrial BESS as power banks and consequently denied them the concessional Basic Customs Duty (BCD) rate.

The clarification limits the term “Power Bank” to lithium-ion battery devices that:

have charging and discharging ports; and
are designed to act as external charging devices for cellular mobile phones or other portable electronic devices.

A BESS used for stationary, grid-scale or industrial applications does not meet this definition merely because it stores and supplies electrical energy.

Customs-duty position

Goods under tariff item 8507 60 00 generally carry a tariff BCD rate of 20%. Under Serial No. 325 of Table I of Notification No. 45/2025-Customs, however, eligible goods under this tariff item receive a concessional 10% BCD rate.

The concessional entry excludes certain categories, including:

battery packs for use in manufacturing electrically operated or hybrid vehicles;
lithium-ion batteries or battery packs for cellular mobile phones; and
power banks.

The circular confirms that stationary, grid-scale and industrial lithium-ion BESS are not within the “power bank” exclusion. Subject to the terms of the notification and correct classification, they may therefore receive the 10% concessional BCD rate rather than the general 20% tariff rate.

Why the clarification matters

The circular is intended to create consistent customs assessments across ports and field formations. Before this clarification, importers of BESS could face differing outcomes where authorities applied the consumer-electronics meaning of “power bank” too broadly.

The Board’s position draws a practical distinction based on the product’s intended use:

Portable consumer charging device: A lithium-ion device intended to recharge phones or portable electronics is a power bank and falls within the exclusion.
Stationary energy-storage system: A battery system intended for grid support, industrial operations, or other fixed energy-storage uses is not a power bank for this entry.

Business implications for BESS importers

Importers of qualifying stationary lithium-ion BESS should be able to rely on this clarification when claiming the concessional rate. Their import documentation should clearly establish the system’s design and end use, including product specifications, technical literature, installation configuration, and stated industrial or grid-scale application.

The distinction is especially significant for projects involving renewable-energy integration, peak-load management, backup power infrastructure and industrial energy storage, where customs-duty treatment can materially affect landed cost.

Effective takeaway

Circular No. 45/2026-Customs confirms that the phrase “power bank” has a narrow, function-based meaning in the relevant customs notification. It applies to portable external chargers for phones and similar electronics, not to stationary, grid-scale or industrial lithium-ion BESS; those systems are therefore not excluded from the 10% concessional BCD on that basis alone.

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

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