Import Duty on EV Parts from China: 2026 Rates & Guide | BEFACH International
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EV Parts Import Duty from China: 2026 Rates & Compliance Guide
February 25, 2026
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EV Parts Import Duty from China: 2026 Rates & Compliance Guide
Understanding the import duty on electric vehicle parts from China is critical for Indian manufacturers and traders looking to source components for the growing EV market. With India's push toward ele
Understanding the import duty on electric vehicle parts from China is critical for Indian manufacturers and traders looking to source components for the growing EV market. With India's push toward electric mobility and the Make in India initiative, customs regulations around EV components have become increasingly complex. Whether you're importing lithium-ion batteries, electric motors, or charging infrastructure components, knowing the exact duty structure helps you calculate landed costs accurately and maintain compliance with Indian customs regulations.
Understanding Import Duty on Electric Vehicle Parts from China
The import duty on electric vehicle parts from China varies significantly based on the specific component and its HS code classification. India imposes a Basic Customs Duty (BCD) ranging from 15% to 30% on various EV parts originating from China, depending on whether the component is considered a completely knocked down (CKD) unit or a semi-knocked down (SKD) kit.
For lithium-ion batteries, which form the core of electric vehicles, the current BCD stands at 20% under HS Code 8507. Electric motors and generators fall under HS Code 8501, attracting duties between 15% and 20%. However, these rates are subject to frequent changes based on trade policies and bilateral agreements between India and China.
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Additionally, importers must account for Integrated Goods and Services Tax (IGST) at 18% on the assessable value plus BCD. Social Welfare Surcharge (SWS) at 10% of the BCD also applies, making the effective import duty on electric vehicle parts from China substantially higher than the base rate.
HS Codes and Duty Structure for EV Components
Proper classification determines your exact duty liability. Here are the critical HS codes for common EV parts imported from China:
Battery Systems (HS Code 8507 60 00)
Lithium-ion batteries attract 20% BCD plus 18% IGST. This represents one of the higher duty categories for EV components, reflecting India's strategy to promote domestic battery manufacturing under the Production Linked Incentive (PLI) scheme.
Electric Motors (HS Code 8501 53 00)
AC motors exceeding 750W but not exceeding 75kW face 15% BCD. For motors above 75kW, the duty increases to 20%. These rates significantly impact the cost structure for EV manufacturers importing drive motors from Chinese suppliers.
Charging Infrastructure (HS Code 8537 10 00)
Electric vehicle charging stations and their components attract 15% BCD. However, certain sub-components like power electronics may fall under different classifications, potentially altering the import duty on electric vehicle parts from China for charging systems.
Electronic control units (ECUs) and battery management systems (BMS) may fall under HS Code 8537 or 9032 depending on specific functionality, facing 15% BCD plus applicable IGST, making comprehensive cost calculation essential before placing orders.
Calculating Total Import Costs: Beyond Basic Duty
When calculating the import duty on electric vehicle parts from China, importers must consider the cumulative effect of multiple levies:
Assessable Value: CIF value (Cost, Insurance, Freight) of the goods
Basic Customs Duty: 15-30% depending on the component
Social Welfare Surcharge: 10% of BCD
Integrated GST: 18% on (Assessable Value + BCD + SWS)
Compensation Cess: Applicable for certain luxury components at varying rates
For example, importing lithium-ion batteries worth ₹10,00,000 (CIF) from China would incur:
BCD (20%): ₹2,00,000
SWS (10% of BCD): ₹20,000
IGST (18% on ₹12,20,000): ₹2,19,600
Total Duty: ₹4,39,600 (43.96% effective rate)
This calculation demonstrates why understanding the complete import duty on electric vehicle parts from China structure is vital for pricing strategies and profitability analysis.
Recent Regulatory Changes and Notifications
The import duty on electric vehicle parts from China has undergone significant modifications following various government notifications. The Ministry of Finance, through the Central Board of Indirect Taxes and Customs (CBIC), periodically issues updates affecting EV component imports.
The government has progressively increased duties on EV components to promote domestic manufacturing under the Automotive PLI Scheme. Certain concessions that were available during 2022-2023 for CKD kits have been withdrawn, and standard rates now apply for most components.
Importantly, imports from China now require additional documentation under the Non-Preferential Rules of Origin verification. The Directorate General of Foreign Trade (DGFT) mandates that all EV parts from China carry detailed country-of-origin certificates to prevent transshipment through ASEAN countries to avail lower duties under Free Trade Agreements.
Compliance Requirements for EV Parts Import
Beyond paying the import duty on electric vehicle parts from China, importers must navigate strict compliance protocols:
BIS Certification: Many electronic components require Bureau of Indian Standards (BIS) certification under the Compulsory Registration Scheme (CRS). Batteries must comply with IS 16046 standards.
E-Waste Management: Import of used or refurbished EV parts is prohibited under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016.
Import Export Code (IEC): Mandatory registration with DGFT for all commercial imports.
Advance Authorization Scheme: Manufacturers can import EV parts duty-free under this scheme, provided they export the finished electric vehicles or equivalent value within specified timeframes.
Frequently Asked Questions
What is the current import duty on electric vehicle parts from China?
The import duty on electric vehicle parts from China ranges from 15% to 30% Basic Customs Duty depending on the specific component, plus 18% IGST and 10% Social Welfare Surcharge. Lithium-ion batteries attract 20% BCD, while motors and controllers generally face 15-20% BCD.
Are there any exemptions available for importing EV parts from China?
Yes, exemptions exist under the Advance Authorization Scheme, Export Promotion Capital Goods (EPCG) scheme, and for units operating in Special Economic Zones (SEZs). Additionally, certain components imported for R&D purposes may qualify for duty concessions subject to DGFT approval.
How do I calculate the landed cost of EV parts imported from China?
Calculate the CIF value, add Basic Customs Duty (15-30%), add Social Welfare Surcharge (10% of BCD), then calculate IGST at 18% on the total of CIF + BCD + SWS. Add clearance charges, freight forwarding fees, and insurance to determine final landed cost.
Do I need special licenses to import lithium-ion batteries from China?
Yes, lithium-ion batteries require BIS certification (IS 16046) and compliance with the Battery Waste Management Rules, 2022. Importers must also register with the Central Pollution Control Board (CPCB) and obtain necessary hazardous substance handling clearances.
Has the import duty on electric vehicle parts from China increased recently?
While base rates have remained relatively stable, enforcement of Rules of Origin has tightened, effectively preventing duty arbitrage through third countries. The government has also withdrawn temporary concessions that were available during 2022-2023 for certain CKD kits.
Conclusion
Navigating the import duty on electric vehicle parts from China requires careful attention to HS code classifications, current notification updates, and comprehensive compliance requirements. With effective duty rates often exceeding 40% of the product value, importers must factor these costs into their business models while exploring legitimate duty exemption schemes where applicable. As India continues balancing the need for affordable EV components with the goal of domestic manufacturing excellence, staying updated on regulatory changes remains crucial for successful import operations.
