The Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance, has issued an important clarification regarding the scope of the term “Power Bank” under Serial No. 325 of Table I of Notification No. 45/2025-Customs dated October 24, 2025, concerning the applicability of concessional Basic Customs Duty (BCD) on lithium-ion batteries and Battery Energy Storage Systems (BESS).
Through Circular No. 45/2026-Customs dated October 9, 2026, the CBIC has clarified that stationary, grid-scale and industrial lithium-ion Battery Energy Storage Systems (BESS) falling under tariff item 8507 60 00 are not to be classified as “Power Banks” for the purpose of the exclusion from the concessional customs duty benefit.
Accordingly, such Battery Energy Storage Systems can avail the concessional Basic Customs Duty rate of 10%, as against the applicable tariff rate of 20%, subject to fulfilment of the conditions prescribed under the relevant Customs Notification.
Concessional BCD of 10% Prescribed Under Notification No. 45/2025-Customs
As per Serial No. 325 of Table I of Notification No. 45/2025-Customs dated October 24, 2025, a concessional Basic Customs Duty rate of 10% has been prescribed for goods falling under tariff item 8507 60 00, subject to specified exclusions.
The exclusions include battery packs for use in the manufacture of electrically operated vehicles or hybrid vehicles, lithium-ion batteries or battery packs of cellular mobile phones, and power banks.
The applicable tariff rate of Basic Customs Duty for goods covered under HSN 8507 60 00 is 20%, whereas eligible goods covered by the concessional entry attract a reduced BCD rate of 10%.
Divergent Customs Assessments Triggered Clarification
The CBIC observed that different Customs field formations were following divergent assessment practices in respect of Battery Energy Storage Systems (BESS) classified under tariff item 8507 60 00.
It was reported that certain Customs formations were treating stationary, grid-scale and industrial lithium-ion BESS as “Power Banks”, thereby denying the benefit of the concessional 10% BCD rate under the relevant Notification.
This resulted in uncertainty concerning the eligibility of large-scale energy storage systems for the concessional customs duty benefit.
The matter was accordingly examined by the Board to ensure uniformity in the interpretation and application of the Customs Notification.
CBIC Defines Scope of the Term ‘Power Bank’
After examination, the CBIC has clarified that, for the purpose of Serial No. 325 of Table I of Notification No. 45/2025-Customs dated October 24, 2025, corresponding to Serial No. 528C of the erstwhile Notification No. 50/2017-Customs dated June 30, 2017, the term “Power Bank” applies only to specified portable lithium-ion battery devices.
The term covers lithium-ion battery devices equipped with charging and discharging ports and designed for use as external charging devices for cellular mobile phones or other portable electronic devices.
Accordingly, the expression “Power Bank” is not intended to cover all lithium-ion battery storage devices merely because they store and supply electrical energy.
Stationary, Grid-Scale and Industrial BESS Not Covered by Power Bank Exclusion
The CBIC has expressly clarified that stationary, grid-scale and industrial lithium-ion Battery Energy Storage Systems falling under tariff item 8507 60 00 are not covered by the exclusion applicable to “Power Banks” under the concessional duty entry.
Consequently, such systems shall not be denied the benefit of the 10% concessional BCD rate solely on the ground that they perform energy storage and power-supply functions similar to power banks.
The clarification distinguishes portable external charging devices from larger stationary and industrial battery storage systems based on their intended design and application.
Implications for Renewable Energy and Energy Storage Infrastructure
The clarification is significant for importers, manufacturers, renewable energy developers and businesses engaged in the deployment of battery storage infrastructure.
Stationary and grid-scale Battery Energy Storage Systems are widely used in renewable energy integration, electrical grid management, backup power infrastructure and industrial energy storage applications.
By clarifying that such systems do not fall within the exclusion applicable to power banks, the CBIC has provided greater certainty regarding the availability of the concessional customs duty rate.
The clarification may help reduce classification-related disputes, facilitate uniform Customs assessments and provide greater predictability in import duty costs for eligible lithium-ion BESS.
Customs Authorities to Ensure Uniform Implementation
The Circular has been issued to Customs field formations and senior authorities under the CBIC to ensure consistent implementation of the clarification.
The CBIC has further stated that any difficulties arising in the implementation of the clarification may be brought to the notice of the Board.
The Circular is intended to remove ambiguity concerning the interpretation of the term “Power Bank” and prevent the denial of concessional duty benefits to eligible energy storage systems merely on account of an overly broad interpretation of the expression.
Effect of the CBIC Circular
Through Circular No. 45/2026-Customs dated October 9, 2026, the CBIC has clarified that:
- The term “Power Bank” under Serial No. 325 of Table I of Notification No. 45/2025-Customs refers to lithium-ion battery devices with charging/discharging ports designed for external charging of mobile phones or portable electronic devices.
- Stationary, grid-scale and industrial lithium-ion Battery Energy Storage Systems (BESS) falling under tariff item 8507 60 00 do not fall within the exclusion applicable to power banks.
- Such eligible BESS are therefore not disentitled to the concessional 10% Basic Customs Duty rate under the said Notification merely because they function as energy storage systems.
- The clarification also applies to the interpretation of the corresponding Serial No. 528C of the erstwhile Notification No. 50/2017-Customs dated June 30, 2017.
- Customs field formations are expected to adopt a uniform interpretation of the expression “Power Bank” while assessing eligible imports of lithium-ion Battery Energy Storage Systems.
The clarification provides important relief from interpretational uncertainty for the energy storage industry and reinforces the distinction between portable consumer power banks and stationary or industrial battery energy storage systems for Customs duty purposes.
The Circular can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1003347/ENG/Circulars
