CBIC Aligns Customs Tariff and Import Policy with Finance Act 2025

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Dated: 11.11.2025

CBIC Aligns Customs Tariff and Import Policy with Finance Act 2025

The Directorate General of Foreign Trade (DGFT) recently issued Notification No. 44/2025-26 dated October 15, 2025, announcing significant amendments to the Indian Trade Classification (Harmonized System) [ITC (HS)] 2022 Schedule-I (Import Policy). These changes align the import policy with the Finance Act 2025 (No. 07 of 2025), ensuring streamlined trade regulations and compliance with updated legislative frameworks. This blog explores the key updates, their implications, and the steps stakeholders need to take to adapt to these changes.

What is ITC (HS)?

The Indian Trade Classification (Harmonized System) [ITC (HS)] is a classification system used for international trade. It categorizes goods based on their nature and usage, facilitating trade and ensuring compliance with import/export regulations. Schedule-I of ITC (HS) specifically deals with import policies for various goods.

Overview of the Notification 

The DGFT notification introduces amendments to ITC (HS) 2022 Schedule-I, including the insertion, deletion, amendment, splitting, and merging of ITC (HS) codes and policy conditions. These changes are aimed at aligning the import policy with the provisions of the Finance Act 2025, which came into effect on March 29, 2025.

The notification includes two annexures:

Annexure-I: Details the list of ITC (HS) codes and related policy conditions that have been modified.
Annexure-II: Outlines amendments to section notes, chapter-wise main notes, supplementary notes, chapter headings, subheadings, and item descriptions.

Key Updates in ITC (HS) 2022 Schedule-I 

Introduction of Policy Condition No. 07:
- A new policy condition has been added to Chapters 29 and 38, stating that the import of pesticides will require a Certificate of Registration issued by the Central Insecticides Board & Registration Committee (CIB&RC) under the Ministry of Agriculture & Farmers Welfare. Additionally, the import must comply with the Insecticides Act, 1968.
Changes to ITC (HS) Codes:
- Several codes have been deleted, amended, or split. For example:
  - 10063010 (Rice, parboiled): Deleted.
  - 10063011 (Parboiled: Rice, GI recognized): Changed to “State Trading Enterprise.”
  - 20081920 (Other roasted nuts and seeds): Deleted.
  - 20081921 (Makhana: Popped): Changed to “Free” with Policy Condition “a.”
- Similar changes have been made across various chapters, including 27, 28, 29, 38, and others.
Revised Item Descriptions:
- Annexure-II provides updated descriptions for specific HS codes. For instance:
  - 28121930: Revised description to “Arsenic trichloride.”
  - 29051910: Revised description to “3,3-Dimethylbutan-2-ol (pinacolyl alcohol).”
Supplementary Notes:
- New supplementary notes have been added to various chapters, providing clarity on specific tariff items. For example:
  - Chapter 10: Defines “Rice, GI recognized” as rice varieties recognized by the Geographical Indications (GI) Registry under the Geographical Indications of Goods (Registration and Protection) Act, 1999.
  - Chapter 20: Defines “Makhana” as the seed of the plant Euryale ferox Salisb. , commonly known as gorgon nut or fox nut.
Effect of Notification:
- The amendments to ITC (HS) 2022 Schedule-I (Import Policy) are effective immediately, as per the notification.

Implications for Stakeholders

Importers:
- Importers dealing with pesticides must ensure compliance with Policy Condition No. 07, which mandates a Certificate of Registration from CIB&RC and adherence to the Insecticides Act, 1968.
- Businesses importing goods under the revised ITC (HS) codes must review the updated policy conditions and ensure compliance to avoid penalties or import restrictions.
Customs Authorities:
- Customs officials are required to familiarize themselves with the updated ITC (HS) codes and policy conditions to ensure smooth implementation of the revised import policy.
Trade and Industry:
- Industries relying on imported goods must assess the impact of the changes on their supply chains and make necessary adjustments to their procurement strategies.
Policy Makers:
- The synchronization of ITC (HS) codes with the Finance Act 2025 reflects the government’s commitment to aligning trade policies with legislative changes, ensuring transparency and ease of doing business.

Action Points for Compliance

Review the Updated ITC (HS) Codes:
- Importers and stakeholders should carefully examine Annexure-I and Annexure-II to understand the changes in codes, descriptions, and policy conditions.
Obtain Necessary Certifications:
- For pesticide imports, ensure that the required Certificate of Registration from CIB&RC is obtained and that the import complies with the Insecticides Act, 1968.
Monitor DGFT Website:
- The updated ITC (HS) 2022 Schedule-I (Import Policy) is available on the DGFT website (https://dgft.gov.in). Regularly check for updates and additional notifications.
Train and Sensitize Staff:
- Organizations should train their staff and sensitize them about the new import policy to ensure compliance and avoid disruptions.
Seek Clarifications:
- Any difficulties or ambiguities in implementing the updated policy should be promptly reported to the Central Board of Indirect Taxes & Customs (CBIC) for resolution.

Conclusion

The amendments to ITC (HS) 2022 Schedule-I (Import Policy) are a significant step towards harmonizing India’s trade regulations with the Finance Act 2025. These changes aim to enhance compliance, streamline import processes, and support the government’s broader trade and economic goals. Stakeholders must proactively adapt to these updates to ensure seamless operations and compliance with the new policy framework.

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

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