Budget 2020: Industry Body For Lower Custom Duty For Electric Vehicle Battery Imports

Industry Body Confederation of Indian Industries (CII) has called for imposition of lower custom duty for battery importers of electric vehicles and also called for peak custom duty of 10 per cent for the importers of auto parts and components for which no technology s available for manufacturing in India.

"Government increased duty rates on auto-components, from tax rate of 7.5 per cent and 10 per cent (as applicable) to 15 per cent and 20 per cent, via Union Budget 2018," CII said in Pre-Budget Memorandum 2020-21.

"The peak rate of customs duty be brought down for the parts and components for which there is no technology available for manufacturing the parts in India," according to CII.

CII has also contested that duty exemption benefits which are available for electric vehicle manufacturers for importing battery pack, battery charger, AC or DC motor and AC or DC motor controller should also be available for the importer, who imports and supplies to electric vehicle manufacturers.

Budget 2020- Other recommendations for the auto component sectors by CII are as follows:

• Customs duty on stainless steel foil used in manufacturing of catalytic converter should be cut to 5 per cent.
• Customs duty should be reduced to 10 per cent for the parts and components for which no technology is available for manufacturing in India.
• Lower duty benefits should be extended to importer of components for supply to manufacture of electric vehicles.
• Clarification should be issued that the term 'pre-assembled/'dis-assembled' be read with the term 'battery pack', and the import of dis-assembled battery back with other parts to be liable to 10 per cent rate of duty.