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Dated: 01.02.2025
Key Budgetary Changes in Customs Tariff-Notfn No 07/2025-Customs dtd 01st February 2025
The Government of India issued Notification No. 07/2025-Customs on 1st February 2025 to amend Notification No. 11/2018-Customs. This notification modifies customs duties on various goods, revises exemptions, and streamlines duty structures. Below are the key highlights:
1. Changes in Customs Duty on Specific Goods
- Addition of new items under customs duty changes:
- Candles & Tapers (3406)
- Footwear (6401-6405)
- Commercial Vehicles (8702, 8704)
- Boats & Yachts (8903)
- Furniture & Household Items (9401, 9403, 9404, 9405)
- Toys (9503 00 91)
2. Deletion & Replacement of Duty Exemptions
- Sl. No. 8 removed (previous duty exemption entries omitted).
- New duty structure introduced under Sl. Nos. 8A to 8H for various goods.
- Sl. No. 53 removed (indicating changes in previous exemptions).
- Changes in headings 7113 & 7114 (now applicable to all goods under these categories).
3. New Duty Classifications Introduced
- Electronic Components (8541 Series)
- New customs duty applied to semiconductors, diodes, transistors, and related electronic goods.
- Medical Equipment (9018-9022)
- New import duty structure introduced, modifying previous exemptions.
- Passenger Vehicles (8703)
- Some categories now taxed under new rates, depending on previous notification conditions.
4. Revised Import Duty Exemptions for Industrial & Consumer Goods
- Exemptions revised for select medical devices under Notification No. 8/2020-Customs.
- All goods under Chapter 98 (miscellaneous goods) now face new duty rates.
- Revised structure for tariff items 9802 00 00 and 9803 to control duty benefits.
5. Effective Date
- The notification comes into effect from 2nd February 2025.
Comparative Table: Notification No. 11/2018-Customs vs. Notification No. 07/2025-Customs
This table highlights the key differences and amendments introduced in Notification No. 07/2025-Customs compared to Notification No. 11/2018-Customs:
| Aspect | Notification No. 11/2018-Customs | Notification No. 07/2025-Customs (Amended) |
| Date of Notification | 2nd February 2018 | 1st February 2025 |
| Purpose | Established customs duty structure and exemptions on multiple goods | Amendments to customs duties, deletion of old exemptions, and reclassification of goods |
| Candles & Tapers (3406) | No separate classification | 7.5% duty imposed |
| Footwear (6401-6405) | Standard import duty rates applied | New customs duty introduced |
| Commercial Vehicles (8702, 8704) | Standard import duty rates applied | New duty structure applied with higher import taxes |
| Boats & Yachts (8903) | No significant duty structure | 7.5% duty imposed |
| Furniture & Household Goods (9401, 9403, 9404, 9405) | Lower import duty rates | New customs duty applied |
| Toys (9503 00 91) | Standard import duty applied | Specific items taxed at 7.5%, others at 20% |
| Passenger Vehicles (8703) | Standard duty rates applied | Revised duty rates for certain categories (up to 67.5%) |
| Electronic Components (8541 Series) | Lower import duty on semiconductors, transistors | Higher import duty imposed (7.5% – 20%) |
| Medical Equipment (9018-9022) | Various exemptions under Notification No. 8/2020-Customs | Duty exemption modified for certain medical devices |
| Miscellaneous Imports (9802 00 00, 9803) | Standard import duty applied | Higher customs duty imposed on certain goods |
| Chapter 98 (Miscellaneous Goods) | Previous exemptions applied | Revised import duty and classification changes |
| Deletions in Duty Exemptions | Sl. No. 8 and 53 retained | Sl. No. 8 and 53 removed (indicating withdrawal of previous exemptions) |
| Revised Exemptions | Goods under 7113 & 7114 had special duty treatment | All goods under 7113 & 7114 now covered under general customs duty |
| Implementation Date | 2nd February 2018 | 2nd February 2025 |
Key Takeaways
β Customs duties increased on luxury items, electronic components, and vehicles.
β New import duties imposed on candles, footwear, boats, furniture, and toys.
β Passenger vehicle imports face higher tax rates (up to 67.5%).
β Electronic and medical equipment exemptions modified.
β Policy shift encourages domestic manufacturing and discourages excessive imports.
In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.
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Source: Cbic, Ministry of Finance, Govt of India
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