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 Overhauls Customs Duty Structure on certain products

The Central Board of Indirect Taxes and Customs (CBIC), under the Ministry of Finance, has issued Notification No. 21/2025-Customs (N.T.), dated 28th March 2025. The notification introduces comprehensive changes to Basic Customs Duty (BCD) rates for a broad range of imported goods, aligning them with India’s evolving economic and trade priorities. The new rates will come into effect from 1st April 2025.

What’s New in the Notification?

Replacement of Entire Table I:

The most significant change is the complete substitution of Table I from the earlier Notification No. 22/2022-Customs. This revamped table sets out revised BCD rates for over 1,300 tariff items, impacting sectors such as:

• Agriculture and Animal Husbandry
• Marine and Aquaculture
• Cereals and Pulses
• Fruits, Vegetables, and Nuts
• Processed Foods and Beverages
• Industrial and Luxury Goods

Key Revisions by Sector:

Live Animals:

• Horses (Tariff 01012100): BCD reduced to 0%, supporting equine sports and breeding sectors.
• Sheep and Goats: BCD maintained at 18%, balancing domestic livestock interests.

Fish and Seafood:

• Wide range of items under Chapters 03.01 to 03.06 retain 0% BCD, aimed at encouraging raw material imports for seafood processing and exports.

Cereals:

• Wheat, maize, rice now have diversified duty rates from 0% to 48%, based on specific sub-categories, quality, and import sensitivity.

Fruits, Vegetables, and Nuts:

• Revised to a spectrum ranging from 0% to 30%, ensuring protection for domestic producers while maintaining import viability during seasonal shortages.

Alcoholic Beverages:

• Several luxury consumables now attract higher BCD rates, exceeding 66%, in line with domestic manufacturing and public health policy considerations.

When Does It Take Effect?

All changes under Notification No. 21/2025-Customs (N.T.) will be enforced from 1st April 2025.

Legal Framework:

This notification derives its authority from:

• Section 25(1) of the Customs Act, 1962
• It supersedes or modifies earlier rates provided in Notification No. 22/2022-Customs.

Impact on Trade and Industry:

For Importers:

• Greater clarity and predictability in tariff structures.
• Lower input costs for manufacturers sourcing raw agricultural and marine materials.

For Non-Essential Imports:

• Higher duties act as a deterrent, promoting domestic substitution and Make in India objectives.

For Customs Brokers and Trade Advisors:

• Requires immediate review of classification and valuation practices to ensure full compliance.

For International Trade Partners:

• Reinforces India’s commitment to WTO-aligned tariff transparency.

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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