Consumer electronics industry seeks duty structure review

Wants exemption from basic customs duty for major parts needed for making air conditioners, refrigerators and washing machines

Consumer electronics and appliances manufacturers have sought a review of the duty structure for the sector, including exemption from customs levy for key parts, to boost domestic manufacturing.

In its Budget suggestions, the Consumer Electronics and Appliances Manufacturers Association (CEAMA) has asked for exemption from basic customs duty for the major parts required for manufacturing air conditioners, refrigerators and washing machines.


"There is a need to address the inverted duty structure. Budget 2015 extended Special Additional Duty exemption on import of certain products for use in manufacture of IT hardware. However, appliance and consumer electronics makers still face this issue as the value addition in this sector, for several products, is quite low and results in an inverted duty structure," CEAMA President Manish Sharma told PTI.

Under inverted duty structure, the raw materials attracts more import duty than the final products.

Further the association has sought an incentive scheme for encouraging manufacturers to produce high Energy Efficiency Rating (EER) products.

Finance Minister Arun Jaitley will unveil the Budget on February 29.