βIndirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisoryβ
Dated: 01.02.2025
Key Budgetary Changes in Customs Tariff-Notfn No 08/2025-Customs dtd 01st February 2025
The Government of India issued Notification No. 08/2025-Customs on 1st February 2025 to amend Notification No. 22/2022-Customs, modifying customs duties, exemptions, and reclassifications across multiple sectors. Below are the key highlights:
1. Removal of Existing Exemptions
- Several serial numbers omitted from Table I, leading to the withdrawal of previous exemptions.
- Notable exemptions removed:
- Serial Numbers: 1412, 1413, 1414, 1415, 1418, 1419, 3577, 3578, 4037-4058, 6856-6885, 6935, 6939, 6940, 9991-9993, 10164-10166, 10200-10205.
2. Introduction of New Duty Structures (Table II Amendments)
- Higher Import Duties Introduced for Certain Goods
- Marble & Limestone (2515, 2516 Series) β Import duty increased to 20% or 8% depending on the subcategory.
- Certain Footwear Items (6403, 6405, etc.) β Now taxed at 20%.
- Granite, Tiles & Other Stone Products (6802 Series) β Duty increased to 20% or 8%.
- Zero Custom Duties Applied to Select Goods
- Candles & Wax Products (3406) β Now fully exempted from customs duty.
- Plastics & Synthetic Materials (3920, 3921, etc.) β Custom duty now at 0%.
- Certain Electronic Components (8541 Series) β Now zero-rated.
3. Adjustments in Vehicle Import Duties
- Commercial Vehicles & Passenger Vehicles
- Motor vehicles (excluding EVs) now taxed at different rates depending on assembly conditions:
- CKD Kit (Completely Knocked Down, Non-Pre-Assembled) β 10.5% duty.
- CKD (Pre-Assembled but not on Chassis) β 17.5% duty.
- Fully Assembled Vehicles β 20% duty.
- Motor vehicles (excluding EVs) now taxed at different rates depending on assembly conditions:
- Electric Vehicles (EVs) & Hybrid Vehicles
- EVs & Hybrid Vehicles now taxed differently:
- CKD Kit (Non-Pre-Assembled) β 10.5% duty.
- CKD (Pre-Assembled but not on Chassis) β 17.5% duty.
- Fully Assembled EVs β 20% duty.
- EVs & Hybrid Vehicles now taxed differently:
- Refrigerated Motor Vehicles
- Now fully exempt from customs duty.
4. Motorcycles & Two-Wheelers
- Regular Motorcycles (Including Mopeds)
- CKD Kit (Non-Pre-Assembled) β 10.5% duty.
- CKD (Pre-Assembled but not on Chassis) β 17.5% duty.
- Fully Assembled Import β 35% duty.
- Electric Two-Wheelers
- CKD Kit (Non-Pre-Assembled) β 10.5% duty.
- CKD (Pre-Assembled but not on Chassis) β 17.5% duty.
- Fully Assembled EV Motorcycles β 35% duty.
5. Effective Date
- The notification comes into force on 2nd February 2025.
Comparative Table: Notification No. 22/2022-Customs vs. Notification No. 08/2025-Customs
This table highlights the key differences and amendments introduced in Notification No. 08/2025-Customs compared to Notification No. 22/2022-Customs:
| Aspect | Notification No. 22/2022-Customs | Notification No. 08/2025-Customs (Amended) |
| Date of Notification | 30th April 2022 | 1st February 2025 |
| Purpose | Established customs duty exemptions & import structures | Amended customs duties, removed exemptions, and reclassified goods |
| Customs Duty on Marble & Limestone (2515, 2516 Series) | Standard import duty applied | Increased to 20% or 8% depending on type |
| Import Duty on Footwear (6403, 6405, etc.) | Standard rates applied | Increased to 20% |
| Granite, Tiles & Other Stone Products (6802 Series) | Lower duty applied | Increased to 20% or 8% |
| Candles & Wax Products (3406) | Standard duty applied | Fully exempted (0%) |
| Plastics & Synthetic Materials (3920, 3921, etc.) | Standard rates applied | Zero-rated (0% duty) |
| Electronic Components (8541 Series) | Various duty rates applied | Now fully exempted (0%) |
| Motor Vehicles (Non-EVs) β Completely Knocked Down (CKD) Kits (Non-Pre-Assembled) | Standard rates applied | 10.5% duty introduced |
| Motor Vehicles (Non-EVs) β CKD (Pre-Assembled but not on Chassis) | Standard duty | 17.5% duty imposed |
| Motor Vehicles (Non-EVs) β Fully Assembled Imports | Standard duty | 20% duty imposed |
| Electric Vehicles (EVs) & Hybrid Vehicles (CKD β Non-Pre-Assembled) | Standard duty | 10.5% duty imposed |
| Electric Vehicles (EVs) & Hybrid Vehicles (CKD β Pre-Assembled but not on Chassis) | Standard duty | 17.5% duty imposed |
| Fully Assembled Electric Vehicles (EVs) | Standard duty | 20% duty imposed |
| Refrigerated Motor Vehicles | Standard rates applied | Fully exempted (0%) |
| Motorcycles & Two-Wheelers (Non-Electric) β CKD Kits (Non-Pre-Assembled) | Standard duty | 10.5% duty imposed |
| Motorcycles & Two-Wheelers (Non-Electric) β CKD (Pre-Assembled but not on Chassis) | Standard duty | 17.5% duty imposed |
| Motorcycles & Two-Wheelers (Non-Electric) β Fully Assembled Import | Standard duty | 35% duty imposed |
| Electric Motorcycles β CKD Kits (Non-Pre-Assembled) | Standard duty | 10.5% duty imposed |
| Electric Motorcycles β CKD (Pre-Assembled but not on Chassis) | Standard duty | 17.5% duty imposed |
| Fully Assembled Electric Motorcycles | Standard duty | 35% duty imposed |
| Omission of Previous Exemptions | Existing exemptions on various goods retained | Removed exemptions for multiple serial numbers (1412, 1413, 3577, 4037-4058, 6856-6885, etc.) |
| Implementation Date | 30th April 2022 | 2nd February 2025 |
Summary of Key Changes
β Higher import duties on footwear, motorcycles, passenger & commercial vehicles, and stone-based products.
β Full duty exemptions for candles, synthetic materials, and certain electronic components.
β Structured tax slabs introduced for CKD, pre-assembled, and fully assembled vehicles & motorcycles.
β Encourages domestic manufacturing while maintaining key exemptions in strategic sectors.
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.
We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!
Source: Cbic, Ministry of Finance, Govt of India
Connect with us for more-
@ Team S J EXIM SERVICES, New Delhi, IN
CP: Ms. Shubhra Jha, Founder
Tel: +91-11-4999 2707 I +91-9999005693
Web: www.sjexim.services
EMAIL: operations@sjexim.services I shubhra@sjexim.services
Facebook: www.facebook.com/sjeximservices
LinkedIn: https://www.linkedin.com/company/90794255/admin/feed/posts/
YouTube: https://www.youtube.com/@sjeximIndia
Subscribe our WhatsApp Channel: https://whatsapp.com/channel/0029VaTxDT8JZg4CHEOSoK47
Subscribe our Telegram Channel: https://t.me/sjeximindia
Disclaimer:
1. The views expressed are based on the interpretation of the relevant information/documents, applicable law, and government policy and there is no assurance that a court or tribunal or regulatory body or other governmental authority may not interpret it differently.
2. We are not responsible for updating or revising this article on account of any change in law or interpretation thereof or a change in events or circumstances informed or occurring after the date of this article unless specifically requested for it.
3. Our advice should not be taken or used out of context or reproduced for any other purpose or transaction. Views expressed in this update are strictly personal, based on our understanding of the underlying law.
4. We are not responsible for any injury, loss or cost arising to any person who refers to this update and acts or refrains from any act accordingly. We would suggest that detailed legal advice must be sought before relying on this update.
NOTE: All Inquiries/Consulting/Advisory/Assignments are solicited via email only & it is a PAID Service only!
#LawFirm #Lawyers #Arbitration #ArbitrationLaw #ADR #India #Law #LegalUpdates #NewDelhi #IndirectTax #IndirectTaxLaw #CBIC #FTP #CommercialLaw #CorporateLaw #ConstitutionalLaw #BarandBench #InternationalArbitration #InternationalCommercialArbitration #WTO #TBT #QCO #BIS #UnitedNations #UNO #DutyDrawback #CustomsAct #Advisory #ProBonoConsulting #IndiaCustomsAtWork #Facebook #Twitter #Instagram #LinkedIn #Tumblr #WhatsAppChannel #WhatsApp #YouTubeChannel #YouTube #KPMG #Deloitte #ErnstandYoung #GrantThornton #EY #PWC #BDO #Consulting #SettlementCase #DGFT #CII #FICCI #IndianChamberofCommerce #InternationalChamberofCommerce #PHDChamberofCommerce #FTP #FTP2023 #Compliance #CDSCO #HighCourts #SupremeCourt #DPIIT #CESTAT #CAAR #AdvanceRuling #CEX #Appeal #Refunds #IGSTRefund #Google #GoogleSearch #GoogleSEO #AIFTA #FTA #ASEAN #CustomsAdvanceRuling #JICA #JETROIndia #KITAIndia #KOTRAIndia #Multinationalcompanies #JapaninIndia #KoreainIndia #GovtofIndia #MinistryofcommerceIndia #TradeDeals #FTA #RulesofOrigin #SJEXIMServices #NewDelhi #India #Ministryofsteel #SteelQCO
Leave a Reply