Government of India Revises Customs Duty Rates

In a significant move aimed at aligning customs duty rates with public interest, the Government of India has issued Notification No. 39/2025-Customs, dated 17th September 2025. This notification introduces amendments to the principal notification No. 50/2017-Customs, which has been a cornerstone of India’s customs framework since its inception on 30th June 2017. The latest amendment revises the customs duty rate for a specific item listed under S. No. 404 in the notification’s table, marking a notable change in India’s trade and tariff policies.

Key Highlights of Notification No. 39/2025-Customs

Amendment to Duty Rate: The notification substitutes the entry in column (5) against S. No. 404 in the table of the principal notification with “18%.” This revision reflects the government’s decision to adjust the customs duty rate for the specified item, ensuring it aligns with current economic and trade priorities.
Effective Date: The revised customs duty rate will come into force on the 22nd day of September 2025. Businesses and stakeholders are advised to take note of this date to ensure compliance with the updated tariff structure.
Legal Framework: The amendment is made under the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962, and sub-section (12) of section 3 of the Customs Tariff Act, 1975. These provisions empower the Central Government to make changes to customs duties in the interest of the public.

Background of the Principal Notification

The principal notification, No. 50/2017-Customs, was first issued on 30th June 2017 and has undergone several amendments to address evolving trade dynamics. The last amendment prior to this was made through Notification No. 31/2025-Customs, dated 30th May 2025. These periodic updates reflect the government’s commitment to maintaining a responsive and adaptive customs framework.

Implications of the Amendment

Impact on Trade: The revised duty rate of 18% may influence the cost structure of the affected goods, potentially impacting importers, manufacturers, and consumers. Businesses dealing with the item listed under S. No. 404 should reassess their pricing strategies and supply chain operations.
Public Interest: The government’s decision to amend the duty rate underscores its focus on balancing revenue generation with public interest. Such changes are often aimed at promoting domestic industries, regulating imports, or addressing economic challenges.
Compliance Requirements: Stakeholders must ensure compliance with the updated customs duty rate starting 22nd September 2025. Non-compliance could lead to penalties or disruptions in trade operations.

Conclusion

Notification No. 39/2025-Customs is a testament to the Government of India’s proactive approach to managing customs duties in line with public interest and economic priorities. As the revised duty rate comes into effect, businesses and stakeholders must stay informed and adapt to the changes to ensure smooth operations. This amendment not only reflects the dynamic nature of India’s trade policies but also highlights the government’s commitment to fostering a balanced and sustainable economic environment.

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Source: CBIC, Ministry of Finance, Govt. of India

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