The Customs Authority for Advance Rulings, Mumbai allowed concessional basic duty on battery parts imported by Veer-O-Metals but refused a blanket ruling, leaving each item to verification at import.

Parts, components and sub-parts imported for making lithium-ion batteries and battery packs qualify for 2.5% basic customs duty (BCD) under Serial No. 295 of Notification No. 45/2025-Customs dated 24 Oct 2025 only to the extent each item fits the entry and its conditions, the Customs Authority for Advance Rulings (CAAR), Mumbai has held [Veer-O-Metals Private Limited v. Commissioner of Customs, Bengaluru, 2026-juristway.com-3484-Customs-AAR(Mumbai)-Customs].

Rajesh Fattesing Dhabre, the Authority, gave the ruling on an application under Section 28H of the Customs Act, 1962, received on 4 Jun 2026.

The company sought a ruling that the parts it proposes to import under heading 8507 are eligible for the concessional rate. The entry covers parts, components and accessories, other than lithium-ion cells and printed circuit board assemblies (PCBAs), for use in manufacturing lithium-ion batteries and battery packs, as well as sub-parts for such items.

The Authority held that the benefit may be available for imported goods shown to fall within the description of the entry and intended for the specified manufacture, subject to Condition No. 3 and the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022.

However, the application described the proposed imports only in broad categories and did not establish the nature, composition, function and classification of each item. A blanket ruling that all goods under heading 8507 qualify could not be given on the basis of a general technical write-up.

The question was answered in the affirmative, subject to these qualifications. Eligibility will turn on the actual description of each imported item, its fit with the entry and its exclusions, and compliance with the conditions. The proper officer may verify documents, technical specifications and end-use evidence at the time of import. The Authority added that the ruling is not a blanket determination of classification or eligibility for every item.

2026-juristway.com-3484-Customs-AAR(Mumbai)-Customs