Prices of imported wireless hearable products to go up from next fiscal

Prices of imported wireless hearable products like headphones, earphones, earbuds, neckbands, headsets and portable Bluetooth speakers are set to go up from next fiscal as the government increases the basic custom duty on these products.

However, the price of such products made in India along with locally assembled smart watches will eventually come down as the government reduces the basic custom duty on their components. There has been no change in custom duties on imported smart watches whose price will continue to remain the same.

The price hike or reduction is likely to be about 3-5% in respective cases, as per industry executives. All these changes in duties will be applicable from next financial year.

“The calibration in custom duties for wearable and hearable devices will provide an impetus for higher growth in 2022,” said Nikhil Mathur, managing director of electronics industry market researcher GfK India.

The Budget changed the basic custom duties of wireless hearable products, smartwatches and their components as part of the phased manufacturing program.

For imported wireless hearable products, the basic custom duty has been increased from 15% to 20%. On wireless hearable components, the duties have been scrapped on printed circuit board assembly and speaker assembly from 10% and battery from 15%, while that of USB cable has been increased from 10% to 15%.

For smart watches, the duties have been brought down to zero for charging cable from 10% and battery from 15%, along with sub-parts used in manufacturing. However, imported smart watches will continue to attract 20% duty like at present.