Import Compliance
BCD + SWS + IGST breakdown for laptops (now 15%), smartphones (20%), components (0-10%), and the new PLI impact on duty structure.
By Aaryan Kakani · · 6 min read
Electronics (HS Chapter 85. "Electrical machinery and equipment") was India's second-largest import category in FY2025 at
India's electronics import policy has shifted significantly since 2020. The government's "Atmanirbhar Bharat" and PLI (Production Linked Incentive) initiatives have introduced higher duties on finished goods while keeping component duties low. Deliberately creating a tariff inversion that favours domestic assembly and manufacturing.
For importers, this means the duty landscape varies dramatically by product type. A finished smartphone attracts over 40% effective duty, while the semiconductor chips inside it enter at 0% BCD. Understanding these distinctions is critical for cost planning and compliance.
Import duty on electronics in India is not a single flat rate. It is a stack of three levies applied in sequence on the CIF (Cost, Insurance, Freight) value of the goods:
Duty Components
Assessable Value = CIF Value
BCD = Assessable Value × BCD Rate
SWS = BCD × 10%
IGST = (Assessable Value + BCD + SWS) × IGST Rate
Total Duty = BCD + SWS + IGST
The table below lists BCD and IGST rates for major electronics categories. The "Effective Total" column shows the approximate total duty as a percentage of CIF value, including BCD, SWS, and IGST.
| Product | BCD | IGST | Effective Total | Notes |
|---|---|---|---|---|
| Laptops / Tablets | 15% | 18% | ~36% | Was 0% until Apr 2025; DGFT authorization required |
| Smartphones (CBU) | 20% | 18% | ~42% | Completely built units; PLI shifted assembly to India |
| Smartphone displays | 0-2.5% | 18% | ~18-21% | Low BCD to support domestic assembly |
| Smartphone camera modules | 0-2.5% | 18% | ~18-21% | Component-level import incentivized |
| PCBAs (populated PCBs) | 0% | 18% | ~18% | 0% BCD under ITA-1 commitments |
| Semiconductor chips / ICs | 0% | 18% | ~18% | ITA-1; includes processors, memory, sensors |
| Chargers / power adapters | 15-20% | 18% | ~36-42% | BIS/CRS mandatory; rate depends on wattage |
| Earphones / headphones | 15% | 18% | ~36% | Wired and wireless; BIS registration needed |
| Smart watches | 20% | 18% | ~42% | Classified as wearable computing device |
| LED TVs (32" and above) | 20% | 18% | ~42% | Anti-dumping duties may apply on select origins |
| LED TVs (below 32") | 20% | 18% | ~42% | Open cell panels at 5% BCD to encourage assembly |
| Printers | 7.5% | 18% | ~27% | Ink-tank and laser; cartridges at separate rates |
| Servers / data storage | 15% | 18% | ~36% | Enterprise storage arrays, rack servers |
| Routers / network switches | 15-20% | 18% | ~36-42% | Enterprise networking equipment |
| Solar panels / cells | 25% | 12% | ~41% | Safeguard duty; 12% IGST (not 18%) |
| Lithium-ion batteries | 5-15% | 18% | ~24-36% | Rate depends on application; EV batteries lower |
| CCTV cameras / IP cameras | 15% | 18% | ~36% | BIS/CRS mandatory since 2021 |
The Bureau of Indian Standards (BIS) operates the Compulsory Registration Scheme (CRS) for electronics. Over 370 product categories now require BIS registration before they can be imported or sold in India. Goods arriving without a valid BIS registration are held at customs and may be re-exported or destroyed.
BIS Registration Process
| Parameter | Details |
|---|---|
| Timeline | 8-12 weeks (including testing) |
| Cost | INR 50,000 - 2,00,000 per product/model |
| Validity | 2 years, renewable |
| AIR requirement | Mandatory for foreign manufacturers; must be an Indian entity |
Any electronic device with wireless capabilities (WiFi, Bluetooth, cellular (4G/5G), Zigbee, LoRa, NFC) requires approval from the Wireless Planning & Coordination (WPC) Wing of the Department of Telecommunications. This is separate from and in addition to BIS certification.
WPC issues two types of approvals:
The Production Linked Incentive (PLI) scheme for electronics manufacturing has fundamentally reshaped India's electronics duty structure. Launched in 2020, PLI provides 4-6% incentive on incremental sales for companies that set up or expand manufacturing in India.
The duty structure is deliberately designed to create a tariff inversion that makes domestic assembly more attractive than importing finished goods:
| Stage | BCD Rate | Policy Intent |
|---|---|---|
| Semiconductor chips | 0% | Encourage import of raw inputs |
| Sub-assemblies (PCBAs, displays) | 0-2.5% | Low cost for domestic assemblers |
| Finished goods (phones, laptops) | 15-20% | Discourage CBU imports, push assembly to India |
Result: Apple, Samsung, Xiaomi, Dixon, and other major manufacturers now assemble smartphones and increasingly laptops in India. India exported 5.6 billion in smartphones in FY2025, up from near-zero in FY2018. A direct consequence of this duty architecture plus PLI incentives.
Let's walk through the landed cost of importing a laptop with a CIF value of $500 (approximately INR 42,500 at 1 USD = INR 85).
| Component | Rate | Calculation | Amount (INR) |
|---|---|---|---|
| CIF Value | . | $500 × 85 | 42,500 |
| BCD | 15% | 42,500 × 15% | 6,375 |
| SWS | 10% of BCD | 6,375 × 10% | 638 |
| Assessable for IGST | . | 42,500 + 6,375 + 638 | 49,513 |
| IGST | 18% | 49,513 × 18% | 8,912 |
| Total Duty | . | BCD + SWS + IGST | 15,925 |
| Landed Cost | . | CIF + Total Duty | 58,425 |
A $500 laptop costs approximately INR 58,425 at the port. A 37.5% uplift over the CIF value. If you are GST-registered, you can claim the INR 8,912 IGST as input tax credit, reducing the effective duty to INR 7,013 (BCD + SWS only), or about 16.5% of CIF.
Since April 2025, laptops attract 15% BCD (up from 0%), plus 1.5% SWS and 18% IGST on the assessable value. The effective total duty is approximately 36% of CIF value. Importers also need a DGFT import authorization and BIS registration for the product. For a $500 laptop, total duty at the port is approximately INR 15,925.
Yes. Over 370 electronic product categories require mandatory BIS registration under the CRS scheme. This includes laptops, mobile phones, LED lighting, power adapters, cables, and batteries. The process takes 8-12 weeks and costs INR 50,000 to 2,00,000. Without a valid BIS registration, customs will not clear your shipment.
Semiconductor chips (ICs, processors, memory) and populated PCBs attract 0% BCD under India's ITA-1 commitments. However, 18% IGST still applies, which is recoverable as input tax credit for GST-registered businesses. Bare (unpopulated) PCBs may attract a different rate. Always verify with the specific HS code on ICEGATE.