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Dated: 27.09.2025

CBIC’s Major Tariff Changes Impacting Importers & Industry

The Ministry of Finance (Department of Revenue) has issued Notification No. ​ 40/2025-Customs, dated 25th September 2025, introducing significant amendments to the principal notification No. ​ 50/2017-Customs. These changes, made under the powers conferred by the Customs Act, 1962, and the Customs Tariff Act, 1975, aim to address public interest concerns and streamline customs regulations. ​ The amendments primarily focus on extending the validity of certain provisions and items listed in the notification. ​ This blog provides a detailed overview of the changes and their implications.

Key Amendments in Notification No. ​ 40/2025-Customs

The notification introduces the following amendments to the TABLE in Notification No. ​ 50/2017-Customs:

1. Changes to S. No. 597
   • The second proviso in column (3) has been replaced with new provisos:
     • Item (i) will cease to have effect after 30th September 2025. ​
     • Items (iii) and (v) will cease to have effect after 30th September 2027. ​
   • This staggered timeline ensures a phased approach to the cessation of specific items, allowing stakeholders to adapt accordingly.
2. Extension of Validity for S. Nos. ​ 598, 601, 602, and 603
   • For these serial numbers, the figures “2025” in column (3) have been substituted with “2027.” ​
   • This extension provides an additional two years for the provisions under these serial numbers to remain in effect, offering continuity and stability for businesses and importers relying on these provisions. ​

Effective Date of the Notification ​

The amendments will come into force on 30th September 2025, ensuring adequate time for stakeholders to prepare for the changes. ​

Background of Notification No. 50/2017-Customs

The principal notification, issued on 30th June 2017, has been a cornerstone of India’s customs regulations, providing exemptions and concessions on various goods. Over the years, it has undergone multiple amendments to align with evolving economic and trade priorities. The last amendment before this notification was made via Notification No. 39/2025-Customs, dated 17th September 2025. ​

Implications of the Amendments

1. For Importers and Businesses
   • The extension of validity for certain items until 2027 offers predictability and stability, allowing businesses to plan their operations and imports without disruption. ​
   • The phased cessation of items under S. No. ​ 597 ensures a gradual transition, minimizing the impact on stakeholders.
2. For Policymakers
   • These amendments reflect the government’s commitment to balancing public interest with trade facilitation. By extending the validity of certain provisions, the government ensures continued support for industries while phasing out items that may no longer align with current priorities.
3. For the Economy
   • The changes are likely to have a positive impact on trade and commerce, as they provide clarity and continuity in customs regulations. This can foster a conducive environment for economic growth and international trade.

Conclusion

Notification No. 40/2025-Customs marks another step in the evolution of India’s customs framework. By extending the validity of key provisions and introducing phased timelines for cessation, the government has demonstrated its commitment to public interest and economic stability. Stakeholders are encouraged to review the amendments carefully and align their operations with the updated regulations before the effective date of 30th September 2025.

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

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