Customs Classification Clarified: Distinction Between IFPDs and Monitors & Related Duty Structure.
The 2025-26 Union Budget brought significant changes to the Basic Customs Duty (BCD) structure for goods falling under Tariff Item 85285900, especially concerning Interactive Flat Panel Displays (IFPDs). Here’s a breakdown of the new classification and the clarifications issued by the CBIC to help importers, manufacturers, and field officers navigate the changes.
Background
Prior to the Budget, all goods under tariff item 85285900 attracted a uniform BCD of 10%. However, the Finance Act, 2025 (Section 103(a) read with the Second Schedule), effective from 2nd February 2025, increased BCD on IFPDs to 20% to curb circumvention practices.
Other monitors (excluding IFPDs) under the same tariff heading continued at 10% BCD, but subject to IGCR conditions under Entry No. 515C of Notification No. 50/2017-Customs dated 30.06.2017.
IGCR Condition Removed
Industry stakeholders highlighted that many imported monitors are not used in further manufacturing and thus should not fall under IGCR conditions. Responding to these concerns, Notification No. 23/2025-Customs dated 04.04.2025 amended Entry 515C to remove the IGCR requirement.
Technical Distinction Between Monitors and IFPDs
Feature | Monitors (Non-IFPDs) | Interactive Flat Panel Displays (IFPDs) |
Touch Capability | Non-touch | Touch-enabled (multi-touch support) |
Screen Size | Typically, 15″ to 43″ | Typically, 55″ to 110″ |
Resolution | HD to 4K | 4K or higher |
Interactivity | Limited to keyboard/mouse input | Touch, stylus input, and gesture control |
Built-in Software | No built-in software | Includes interactive software tools |
Built-in Speakers | External speakers needed | Includes high-quality built-in speakers |
Wattage | Typically, 25W–50W | Typically, 198W–400W |
Input Power | DC power (Adapter) | AC power |
Classification Guidance
To ensure uniform classification, the CBIC has now clarified:
- Both IFPDs and other monitors are classifiable under tariff item 85285900
- IFPDs attract 20% BCD, while other monitors attract 10% BCD (no IGCR condition)
- Parts of IFPDs such as Touch Glass Sheets and Touch Sensor PCBs are classifiable under HS 8529 with a 5% BCD as per Entry 515D of Notification No. 50/2017-Customs
Implementation & Support
Stakeholders or field officers facing any implementation-related issues have been advised to report them directly to the Board for further resolution.
Conclusion
This clarification is crucial for manufacturers, importers, and customs officials to distinguish between IFPDs and standard monitors, thereby avoiding unnecessary disputes and ensuring proper duty compliance.
Notification Reference: Customs
Circular No. 12/2025-Customs
07/04/2025