## Policy Analysis Report: Notification No. 12/2022-Customs
**1. Executive Summary:**
This report analyzes Notification No. 12/2022-Customs, published by the Ministry of Finance, Department of Revenue on February 1, 2022. This notification exempts certain goods imported into India from a portion of customs duty, specifically those related to the manufacture of hearable devices and related components. The core purpose is to reduce the duty on these specified goods, potentially boosting the domestic manufacturing of hearable devices. Key findings include a detailed list of goods benefiting from the exemption, varying standard rates depending on the specific item, and time-bound conditions for availing the exemption.
**2. Introduction:**
This report aims to provide a comprehensive overview of Notification No. 12/2022-Customs, based solely on the provided text. It outlines the policy's objective, key provisions, target audience, implementation aspects, and expected outcomes, focusing on providing clear and concise information extracted directly from the notification.
**3. Policy Overview:**
This is a new policy.
* **Core Objective(s):** Based on the text, the primary objective is to exempt specific goods from customs duties when imported into India. This exemption appears intended to benefit the manufacturing sector, specifically those involved in producing hearable devices. The stated justification for the exemption is "in the public interest."
**4. Background and Rationale:**
This policy addresses the likely issue of high import duties hindering the domestic manufacturing of hearable devices. By reducing or eliminating these duties on specific inputs, parts, and components, the policy likely aims to incentivize local production, potentially leading to lower costs for manufacturers and, possibly, consumers. The notification uses the phrase "in the public interest" which suggests a broader economic or social benefit is anticipated from encouraging the domestic hearable device industry.
**5. Key Provisions / Changes:**
This section details the main components and rules established by the notification:
* **Duty Exemption:** The core provision is the exemption of specified goods from a portion of the customs duty.
* **Goods Covered:** The notification includes a detailed table specifying the goods eligible for exemption. This covers a wide range of items, including:
* Batteries for hearable devices (heading 8507 60 00, 8507 80 00)
* Inputs, parts, and subparts for the manufacture of items above (Any Chapter)
* Printed Circuit Board Assemblies (PCBAs) for hearable devices (heading 8518 90 00)
* Speaker assemblies for hearable devices (heading 8518 90 00)
* Various parts, components, and accessories of hearable devices (headings 73, 74, 85), including rubber parts, plastic parts, screws, magnets, and numerous other specialized items.
* All goods falling under headings 8518 21 00, 8518 22 00, 8518 29 00, or 8518 30 00.
* All goods falling under headings 8518 21, 8518 22, 8518 29 or 8518 30 other than hearable devices.
* All goods falling under heading 8518 90 00 other than those mentioned at S. Nos 3, 5, 7 and 10.
* **Standard Rate:** The "standard rate" column specifies the customs duty rate after the exemption. In many cases, the rate is "Nil," meaning a full exemption. In other cases, the rate is 5%, 10%, or 15%.
* **Conditions:** The "Condition No." column refers to the Annexure, which specifies conditions for availing the exemption. Condition 1 requires importers to follow the procedure specified in the Customs Import of Goods at Concessional Rate of Duty Rules, 2017. Conditions 2 through 7 specify different validity periods for the exemptions, ranging from 31st March 2022 to onwards 1st April 2025.
* **Hearable Device Definition:** The notification defines "hearable devices" as true wireless stereo (TWS) devices, headphones, earphones, earbuds, neckbands, headsets capable of wireless connection and portable bluetooth speakers with amplifier and loudspeakers not exceeding 40 Watts that has battery as source of power and capable of wireless connectivity through bluetooth.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* Manufacturers of hearable devices in India.
* Importers of components and parts used in the manufacture of hearable devices.
* Customs officials responsible for enforcing import duties.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Central Government, specifically the Ministry of Finance (Department of Revenue), is responsible for implementing this notification. Customs officials will also play a key role in enforcing the exemption.
* **Timelines and Procedures:** The notification specifies various validity periods for the exemptions, requiring importers to adhere to the Customs Import of Goods at Concessional Rate of Duty Rules, 2017. This implies a procedural compliance aspect to claim the exemption. The validity periods are as follows:
* Upto 31st March, 2022.
* From 1st April, 2022 onwards.
* From 1st April, 2022 upto 31st March, 2023.
* From 1st April, 2023 upto 31st March, 2024.
* From 1st April, 2024 upto 31st March, 2025.
* From 1st April, 2025 onwards.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of this policy are:
* **Increased Domestic Manufacturing:** Lower import duties should reduce the cost of production for Indian manufacturers of hearable devices, making them more competitive.
* **Reduced Costs for Consumers:** Potentially, the lower production costs could translate into lower prices for consumers.
* **Growth of the Hearable Device Industry:** The policy could stimulate growth in the Indian hearable device industry, leading to job creation and economic development.
* **Reduced Reliance on Imports:** Encouraging domestic production could reduce India's reliance on imported hearable devices and components.
**9. Conclusion:**
Notification No. 12/2022-Customs is a significant policy aimed at promoting the domestic manufacturing of hearable devices in India. By exempting key inputs and components from customs duties, the policy seeks to reduce production costs, boost competitiveness, and stimulate growth in this sector. The success of the policy will depend on effective implementation and compliance by relevant stakeholders. The detailed specifications of goods and the conditions attached to the exemption provide a clear framework for manufacturers and importers to benefit from this initiative.
Key Entities Referenced
Customs Act, 1962: A law providing the legal framework for customs duties and regulations in India.
Central Government: The executive authority of the Union of India.
India: The Republic of India, the nation into which goods are imported.
Customs Tariff Act, 1975: A law related to customs tariffs in India.
Ministry of Finance: A ministry of the Government of India responsible for financial matters.
Department of Revenue: A department within the Ministry of Finance, Government of India.
New Delhi: The capital of India, where the notification was issued.
Customs Import of Goods at Concessional Rate of Duty Rules, 2017: A set of rules that specify the procedure to be followed for the import of goods at concessional rate of duty.
Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi110064: Directorate of printing at government press. Details of place included
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-01022022-233042
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CG-DL-E-01022022-233042
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 86] नई दिल्ली, मगं लिार, फरिरी 1, 2022/माघ 12, 1943
No. 86] NEW DELHI, TUESDAY, FUBRUARY 1, 2022/ MAGHA 12, 1943
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
अजधसचू ना
नई दिल्ली, 1 फरिरी, 2022
स.ं 12/2022 – सीमािल्ु क
सा.का.जन. 86 (अ).—केंद्रीय सरकार, सीमािुल्क अजधजनयम, 1962 (1962 का 52) की धारा 25 की उप-धारा
(1) द्वारा प्रित्त िजियों का प्रयोग करत े हुए, यह समाधान हो िाने पर दक ऐसा करना लोकजहत म ें आिश्यक ह,ै नीच े िी
गई सारणी के स्ट्तंभ (3) म ें यथा जिजनर्िष्टि और सीमािुल्क टैररफ अजधजनयम, 1975 (1975 का 51) की प्रथम अनुसूची के
अध्याय या िीर् ि या उपिीर् ि या टैररफ मि के अधीन आन े िाल े िर्णित माल को िो उि सारणी के स्ट्तंभ (2) म ें तत्सस्ट्थानी
प्रजिजष्ट म ें िर्णित दकए गए ह,ैं िब िह भारत म ें आयात दकए िाते ह,ैं उि प्रथम अनुसूची के अधीन उस पर उद्ग्रग्रहणीय
उतने सीमािुल्क स े जितना उि सारणी के स्ट्तंभ (4) म ें तत्सस्ट्थानी प्रजिजष्ट म ें यथा जिजनर्िष्टि मानक िर पर संगजणत रकम स े
अजधक ह,ै इस अजधसूचना के उपाबंध म ें यथा जिजनर्िष्टि दकन्ही ितों के अध्याधीन, उस ित ि संख्या को िो उि सारणी के
स्ट्तंभ (5) म ें तत्सस्ट्थानी प्रजिष्टी म ेंउजल्लजखत ह,ै छूट िते ी ह ै।
668 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
सारणी
क्रम अध्याय या िीर्ि माल का जििरण मानक िर िति सं.
संख्या या उपिीर्ि या
टैररफ मि
(1) (2) (3) (4) (5)
1. 8507 60 00/ श्रिण के जलए प्रयोग होने िाली युजियों के जिजनमािण िून्य 1 और 4
में प्रयोग होने िाली बैरी
8507 80 00
5% 1 और 5
10% 1 और 6
15% 1 और 7
2. कोई अध्याय क्रम सं. 1 पर उजल्लजखत मिों के जिजनमािण म ें प्रयोग के िून्य 1 और 3
जलए इनपुट या पुिे या उपपुिे
3. 8518 90 00 श्रिण के जलए प्रयोग होने िाली युजियों के जिजनमािण िून्य 1 और 4
में प्रयोग होन े िाल े मुदद्रत सर्किट बोड ि संयोिन
(पीसीबीए) 10% 1 और 5
15% 1 और 6
15% 1 और 7
4. कोई अध्याय क्रम सं. 3 पर उजल्लजखत मिों के जिजनमािण म ें प्रयोग के िून्य 1 और 3
जलए इनपुट या पुिे या उपपुि े
5. 8518 90 00 श्रिण के जलए प्रयोग होने िाली युजियों के जिजनमािण िून्य 1 और 4
म ें प्रयोग होने िाल ेस्ट्पीकर संयोिन
िून्य 1 और 5
5% 1 और 6
स्ट्पष्टीकण :- इस प्रजिष्ट के प्रयोिनाथि स्ट्पीकर समुच्चय स े
10% 1 और 7
संरक्षात्समक उपाय के साथ पूिि संजनयोजित स्ट्पीकर
ड्राइिर अजभप्रते ह ै । ककंतु इसमें मुदद्रत सदकट बोडि
समुच्चय (पीसीबीए) या बैटरी सजममजलत नहीं ह ै।
6. कोई अध्याय क्रम सं. 5 पर उजल्लजखत मिों के जिजनमािण म ें प्रयोग के िून्य 1 और 3
जलए इनपुट या पुिे या उपपुि े[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3
श्रिण के जलए प्रयोग होन े िाले जनम्नजलजखत युजि िून्य 1 और 4
7. 73, 74, 85
भागों, घटकों और उपसाधनों, अथाित ्: -
5% 1 और 5
(i) रबर के भाग
10% 1 और 6
(ii) प्लाजस्ट्टक के भाग
15% 1 और 7
(iii) पेंच
(iv) चुंबक
(v) संयोजित करने िाल ेभाग
(vi) कणि परत
(vii) मंच िोड़
(viii) मंच खोल
(ix) कान के हुक
(x) रोटरी जपन
(xi) तार
(xii) कान के बड बटन हाउससंग
(xiii) स्ट्पीकर कैजिटी
(xiv) जसलीकोन दफन्स
(xv) कान मफ्स
(xvi) कान के खोल
(xvii) बाहरी और भीतरी सांच े
(xviii) ऊपरी घेरे के साथ िाजहने कान के कोपल
(xix) कान के कप/कान के कुिन
(xx) कान का िैल
(xxi) गल े का बैंड और जसर का बडैं (तारिार
और घुमाििार)
(xxii) चार्ििंग केस हाउससंग
(xxiii) िाजहने कान के कोपल का सीलबंि
ड्राइिर
(xxiv) कान के कोपल का मासस्ट्कंग बोडि (ईिीए)
(xxv) कान के कोपल की हाउससंग
(xxvi) घुमाििार िाफ्ट (धातु और प्लाजस्ट्टक)
(xxvii) धातु के कान के खोल
(xxviii) ताबं े की पन्नी
8. कोई अध्याय क्रम सं. 7 पर उजल्लजखत मिों के जिजनमािण म ें प्रयोग के िून्य 1 और 3
जलए इनपुट या पुिे या उपपुि े
9. 8518 21 00, सभी माल 15% 2
8518 22 00,
8518 29 00 या
8518 30 004 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
10. 8518 21, सभी माल, श्रिण के जलए प्रयोग होने िाली युजि के 15% 3
अलािा
8518 22,
8518 29 या
8518 30
11. 8518 90 00 सभी माल, क्रम संख्या 3,5 और 7 पर उजल्लजखत के 10% -
अलािा
स्ट्पष्टीकरण :- इस अजधसूचना के प्रयोिनाथ,ि श्रिण के जलए प्रयोग होने िाले उपकरणों स ेआिय ह:ै-
(i) बेतार स्ट्टीररयो, जसर पर लगाए िाने िाल ेफोन, कान में लगाए िाने िाल ेफोन और समरुप उपकरण िैस ेदक
कान के कोपल, गले के बैंड, जसर पर लगाए िाने िाले सैट इत्सयादि, माइक्रोफोन के साथ संलग्न हों या नहीं और
बेतार माध्यम द्वारा संबद्ध दकए िाने के सक्षम हों; और
(ii) प्रिधिक और ध्िजन जिस्ट्तारक (कों) के साथ संयोजित पोटेबल ब्लू टूथ स्ट्पीकर, जिनकी अजधकतम आउटपुट िजि
40 िाट से अजधक न हो और जिनके साथ िजि के स्रोत के रुप में बैटरी सलं ग्न हों और िो ब्लटू ूथ के माध्यम से
बेतार कनेजटटजिटी के सक्षम हों ।
उपाबधं
िति संख्या ित ें
1. यदि आयातक सीमािुल्क (िल्ु क की ररयायती िर पर माल के आयात)जनयम, 2017 में जिजनर्िष्टि प्रदक्रया
का पालन करता ह ै।
2. तारीख 31 माचि, 2022 तक जिजधमान्य
3. तारीख 1 अप्रलै , 2022 से जिजधमान्य
4. तारीख 1 अप्रैल, 2022 से 31 माच,ि 2023 तक जिजधमान्य
5. तारीख 1 अप्रलै , 2023 से 31 माच ि 2024 तक जिजधमान्य
6. तारीख 1 अप्रलै , 2024 स े 31 माच,ि 2025 तक जिजधमान्य
7. तारीख 1 अप्रलै , 2025 से जिजधमान्य ।
2. यह अजधसूचना तारीख 2 फरिरी, 2022 से प्रिृत्त होगी ।
[फा. स.ं 334/01/2022-टीआरयू]
जनजति कनािटक, अिर सजचि[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 5
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 1st February, 2022
No. 12/2022-Customs
G.S.R. 86 (E).—In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act,
1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do,
hereby exempts the goods of the description as specified in column (3) of the Table below and falling within the
Chapter or heading or sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as
are specified in the corresponding entry in column (2) of the said Table, when imported into India, from so much of
the duty of customs leviable thereon under the said First Schedule as is in excess of the amount calculated at the
standard rate as specified in the corresponding entry in column (4) of the said Table, subject to any of the conditions
as specified in the Annexure to this notification, the Condition No. of which is mentioned in the corresponding entries
in column (5) of the said Table.
TABLE
S.No. Chapter or Description of goods Standard rate Condition
heading or sub- No.
heading or
tariff item
(1) (2) (3) (4) (5)
1. 8507 60 00/ Battery for use in manufacture of hearable devices. Nil 1 and 4
8507 80 00
5% 1 and 5
10% 1 and 6
15% 1 and 7
2. Any Chapter Inputs or parts or sub-parts for use in manufacture of Nil 1 and 3
items mentioned at S. No. 1.
3. 8518 90 00 Printed Circuit Board Assembly (PCBA) for use in Nil 1 and 4
manufacture of hearable devices.
10% 1 and 5
15% 1 and 6
15% 1 and 7
4. Any Chapter Inputs or parts or sub-parts for use in manufacture of Nil 1 and 3
items mentioned at S. No. 3.
5. 8518 90 00 Speaker assembly for use in manufacture of hearable Nil 1 and 4
devices
Nil 1 and 5
5% 1 and 6
Explanation – For the purposes of this entry, speaker
10% 1 and 7
assembly means a pre-assembled speaker driver with
protective mesh, but not including Printed Circuit
Board Assembly (PCBA) or battery.
6. Any Chapter Inputs or parts or sub-parts for use in manufacture of Nil 1 and 3
items mentioned at S. No. 5.
7. 73, 74, 85 The following parts, components and accessories of Nil 1 and 4
hearable devices, namely: -
5% 1 and 5
(i) Rubber parts
10% 1 and 6
(ii) Plastic parts
15% 1 and 7
(iii) Screws
(iv) Magnets6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(v) Connect parts
(vi) Earlaps
(vii) Mic Gaskets
(viii) Mic Membrane
(ix) Ear hooks
(x) Rotary Pin
(xi) Wires
(xii) Earbud Button Housing
(xiii) Speaker Cavities
(xiv) Silicone fins
(xv) Earmuffs
(xvi) Ear shell
(xvii) Outer and inner moulds
(xviii) Right earbud upper housing
(xix) Earcup/ Ear-Cushions
(xx) Ear-gel
(xxi) Neckband and Headband (wired
and moulded)
(xxii) Charging case housing
(xxiii) Right earbud driver sealing
(xxiv) Earbud board masking EVA
(xxv) Earbud bottom housing
(xxvi) Revolving Shaft (Metal and
plastic)
(xxvii) Metal ear shells
(xxviii) Copper foil.
8. Any Chapter Inputs or parts or sub-parts for use in manufacture of Nil 1 and 3
items mentioned at S. No. 7.
9. 8518 21 00, All goods 15% 2
8518 22 00,
8518 29 00 or
8518 30 00
10. 8518 21, All goods, other than hearable devices. 15% 3
8518 22,
8518 29 or
8518 30
11. 8518 90 00 All goods other than those mentioned at S. Nos 3, 5, 10% -
and 7.
Explanation. - For the purposes of this notification, hearable devices mean: -
(i) true wireless stereo (TWS), headphones, earphones and similar devices like earbuds, neckbands, headsets,
etc., whether or not combined with a microphone, being capable of connecting through a wireless medium;
and[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 7
(ii) portable bluetooth speakers comprising of an amplifier and loudspeaker(s) with maximum output power not
exceeding 40 Watts, having battery as a source of power and capable of wireless connectivity through
bluetooth.
ANNEXURE
Condition No. Conditions
If the importer follows the procedure specified in the Customs (Import of Goods at Concessional
1.
Rate of Duty) Rules, 2017.
Valid upto 31st March, 2022.
2.
Valid from 1st April, 2022 onwards.
3.
Valid from 1st April, 2022 upto 31st March, 2023.
4.
Valid from 1st April, 2023 upto 31st March, 2024.
5.
Valid from 1st April, 2024 upto 31st March, 2025.
6.
Valid from 1st April, 2025 onwards.
7.
2. This notification shall come into force on the 2nd day of February, 2022.
[F. No. 334/01/2022-TRU]
NITISH KARNATAK, Under Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.