Telcos ask finance ministry to clarify on import duty for routers

KOLKATA: Telcos have asked the finance ministry to clarify whether routers – a critical IT and network communication device – will attract import duty from January 1, saying such a levy would jack up 4G network expansion costs, hit future 5G deployment and run afoul of India’s obligations to the World Trade Organization.

At present , the router does not attract any basic customs duty. It is among about 200 items under the Information Technology Agreement (ITA-1) of WTO on which signatories, including India, have committed to eliminate customs duties. However, the government reclassified routers under the Finance Act (No. 2), 2019, and the Central Board of Indirect Taxes & Customs set January 1, 2020, as the implementation date for the new clauses.