Finance Ministry Clarifies 10 Percent Customs Duty on Stationary and Grid-Scale BESS
The Ministry of Finance has clarified that stationary, grid-scale and industrial lithium-ion BESS qualify for a concessional 10 percent Basic Customs Duty (BCD), while consumer power banks remain subject to the applicable 20 percent tariff rate.
October 13, 2026. By Mrinmoy Dey
The clarification follows reports of divergent assessment practices among customs field formations for BESS classified under tariff item 8507 60 00. Some formations had been treating stationary, grid-scale and industrial BESS as power banks and denying them the concessional duty rate.
The Ministry has clarified that the term ‘Power Bank’ applies only to lithium-ion battery devices equipped with charging and discharging ports and designed to function as external charging devices for cellular mobile phones or portable electronic devices. Consequently, stationary, grid-scale and industrial lithium-ion BESS falling under the specified tariff item are not covered by the power-bank exclusion and should not be denied the 10 percent concessional BCD rate merely on that basis.
The clarification aims to address inconsistent customs assessments by establishing a clear distinction between portable consumer charging devices and stationary energy storage systems.
The concessional duty provision continues to exclude battery packs used in the manufacture of electrically operated or hybrid vehicles, lithium-ion batteries or battery packs for cellular mobile phones, and power banks.
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