𝐒 𝐉 𝐄𝐗𝐈𝐌 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬

“Indirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisory”

Dated: 02.04.2025

CBIC Issues Major Customs Duty Revision Across Product Categories Effective from April 1, 2025

The Central Board of Indirect Taxes and Customs (CBIC), under the Ministry of Finance, has issued Notification No. 22/2025-Customs, dated 28th March 2025, introducing comprehensive changes to basic customs duties (BCD) applicable to a wide range of imported goods. The revised rates will come into effect from 1st April 2025, replacing the earlier structure laid out in Notification No. 25/2021-Customs.

Scope of the Amendment:

The notification substitutes Table 1 and Table 2 of the 2021 notification, presenting updated duty rates for hundreds of tariff items across sectors including marine products, horticulture, oils and fats, prepared foods, pharmaceuticals, chemicals, plastics, textiles, apparel, watches, medical devices, and electronic components.

Key Highlights of Table 1:

• Marine Products:
  • Tariff items like 03023900, 03034400, and 03034600 now attract 0% BCD, supporting seafood imports for processing.
  • Other categories like 03028990 and 03034300 are set at 5% to 8.6%, balancing trade and domestic fishing industry interests.
• Horticulture (Live Plants):
  • High duty of 30% on items under Chapter 06 (e.g., 06031100 to 06031500) to promote local nursery businesses.
• Edible Oils and Fish Oils:
  • Fish oils (15042010/20/90) and palm oils (15041010, 15041099) attract 15% BCD.
• Prepared Foods (Chapter 19 & 20):
  • Duty-free entry for health-focused and essential items like 19019010 (health foods) and 20019000 (prepared vegetables).
  • Up to 22.5% BCD for luxury or processed snacks like wafers, pasta, and savory preparations.
• Soft Drinks and Beverages (Chapter 22):
  • Energy drinks and similar categories under 210690xx attract 100% BCD.
• Pharmaceuticals & Medical Devices (Chapter 30 & 90):
  • Most pharmaceutical formulations have a standard 5% BCD.
  • Life-saving equipment under codes like 901832 and 901839 have 0% to 3.8% duty rates.
• Plastic Articles and Textiles (Chapters 39 & 63):
  • General plastic articles attract 5% to 10%, while key packaging materials remain at 0% to support exports.
  • Textiles range from 5% to 15%, with readymade garments and home textiles facing higher duties.
• Watches, Toys, and Optical Goods:
• Several items (9109 series, 9503 series) carry 2.9% to 10%, aimed at curbing non-essential imports.

Table 2 – Alcoholic Beverages:

A separate table provides for a 50% concessional BCD on select alcoholic beverages (e.g., 22087011 to 22089099), under specific trade agreements or concessions.

Effective Date:

All changes take effect from 1st April 2025, applicable for imports cleared on or after that date.

Strategic Implications:

• Encourages domestic manufacturing by disincentivizing finished product imports.
• Protects sensitive sectors like horticulture, food processing, pharmaceuticals, and textiles.
• Supports India’s international commitments through tailored concessions.

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

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