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Circular No.
08/2025-Customs

CBIC-190354/178/2024-TRU Section-CBEC
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
***
North Block, New Delhi
Dated the 24
th
March, 2025
To
All Principal Chief Commissioner/Chief Commissioner of Customs/Customs
(Preventive), All Principal Chief Commissioner/Chief Commissioner of Customs
& Central Tax,
All Principal Commissioner/ Commissioner of Customs/Customs
(Preventive),
All Principal Commissioner/Commissioner of Customs & Central Tax,
All Principal Director Generals/Director Generals under CBIC.

Subject: Clarification on the scope of the Camera Module of Cellular Mobile
Phones –reg.
Madam/Sir,
Reference is invited to entry at S. No. 5A of notification No. 57/2017-
Customs dated 30.06.2017 vide which a concessional basic custom duty (BCD)
rate of 10% has been prescribed on the camera modules for use in manufacture
of a cellular mobile phone and entry at S.No. 6B and 6BA of the said notification
vide which inputs or parts including the camera lens or sub-parts of the parts
used in the manufacture of the camera modules have been fully exempted from
BCD.
2. DRI has sought issuance of clarification on the scope of camera module
under entry at S.No. 5A of the notification No. 57/20217- Cus dated 30.06.2017
stating that the camera module and its contents have not been defined/specified
till date. An investigation carried out by DRI has raised doubts on whether on two
camera modules sealed in a metal chassis bracket can be treated as camera
module considering that if the chassis was imported separately, the same would
attract 15% for the period prior to 30.01.2024. As per the investigations, imports
of camera modules consist of not only camera but other parts of mobile phones,
such as flexible printed circuit having connectors, plastic cover, metal chassis
with space/cavity for other components of mobile phone, cover plates, camera
modules fitted in the metal chassis.

3. Based on the inputs of MeitY OM No. W-15/2/2024-IPHW dated
31.12.2024, this circular is being issued to clarify the scope of the camera
modules used in the manufacture of cellular mobile phones.
4. To ensure uniformity of practice on what constitutes essential character of
the camera module of the mobile phones, it is hereby clarified as under:

i. The camera module is a combination of various parts and components such
as lens, sensor, FPCB Assembly, bracket/holder, connectors, mechanical
parts etc. based on the design of the model of the mobile phone. The
camera module for use in manufacturing of cellular mobile phones has an
essential character of the camera and should be classified as camera module
in terms of Rule 3(b) of the General Rules of Interpretation (GRI) of the
Harmonised System. In cellular mobile phone sector, technology gets
outdated in a short span of time. Due to technological advancements, the
components are amalgamated or removed or ameliorated, the parts, the sub
parts, micro and macro sub parts are required to be modified periodically.
Therefore, the “essential character” criteria should be followed for the
classification of the camera module.
ii. The camera module (including singular or multiple cameras) designed with
specific components such as lens, sensor, FPCB Assembly, bracket/holder,
connectors, mechanical parts etc. for the purpose of integrating the camera
module and merely add the strength, ensure the structural stability and
protection in mobile phones shall be classified as camera modules of the
mobile phones as long as its functionality remains limited to that of a camera.
iii. As was clarified in the context of display assembly, parts/components of
camera module which do not have a function of their own and do not add any
functionality to the principal function of the camera module of mobile phones
and /or merely add strength, protection and structural stability should be
considered as camera module when imported as a complete assembly.
iv. Accordingly, when a camera module is imported as an integrated assembly, it
shall continue to attract the concessional basic customs duty rate as
prescribed in entry at S. No. 5A of notification No. 57/2017-Customs dated
30.06.2017. However, where the components of a camera module are
imported individually (not as a complete assembly), they shall attract the
applicable BCD rate.

5. Difficulty faced, if any, in the implementation of the instructions, may be

brought to the notice of the board. Hindi version will follow.
6. Hindi version will follow.
Yours faithfully,


Kumar Vivek
Technical Officer (TRU-I)