The Customs Tariff Act, 1975 is undergoing significant changes in its duty rate schedule. With the Finance Bill, 2025 introducing amendments that will come into effect from February and May 2025, businesses across various sectors must understand how these changes affect import and export duties. In this post, we break down the amendments sector‑wise, covering increases and decreases in tariff rates, additional proposals on basic customs duty, export duty adjustments, and revisions to the Agriculture Infrastructure and Development Cess (AIDC).
| I. AMENDMENTS TO DUTY RATES IN THE FIRST SCHEDULE | |||||||
| (Effective dates as indicated; “Clause 98(a)” applies to increases and “Clause 98(b)” to decreases.) | |||||||
| A. Increase in Tariff Rates | |||||||
| (Effective from 02.02.2025 – also via provisional declaration under the Provisional Collection of Taxes Act, 2023) | |||||||
| S. No. | Sector | Tariff Item(s) | Commodity | From Rate | To Rate | Effective Date | Clause |
| 1 | Textile | 6004 10 00; 6004 90 00; 6006 22 00; 6006 31 00; 6006 32 00; 6006 33 00; 6006 34 00; 6006 42 00; 6006 90 00 | Knitted Fabrics | 20%/10% | 20% or Rs115/kg (whichever is higher) | 02.02.2025 | Clause 98(a) of FB, 2025 |
| 2 | IT & Electronics | 8528 59 00 | Interactive Flat Panel Displays (Completely Built Units) | 10% | 20% | 02.02.2025 | Clause 98(a) of FB, 2025 |
| B. Decrease in Tariff Rates | |||||||
| (Effective from 01.05.2025) | |||||||
| S. No. | Sector | Tariff Item(s) | Commodity | From Rate | To Rate | Effective Date | Clause |
| 1 | Building Materials/Stone | 25151100; 2515 12 | Marble & travertine, crude or roughly trimmed (cut into blocks, slabs, etc.) | 40% | 20% | 01.05.2025 | Clause 98(b) of FB, 2025 |
| 2 | Building Materials/Stone | 2516 11 00; 2516 12 00 | Granite, crude or roughly trimmed (cut into blocks, slabs, etc.) | 40% | 20% | 01.05.2025 | Clause 98(b) |
| 3 | Chemical | 2933 59 | Compounds containing a pyrimidine or piperazine ring | 10% | 7.50% | 01.05.2025 | Clause 98(b) |
| 4 | Food & Chemical | 3302 10 | Synthetic flavouring essences & mixtures (used in food and drink industries) | 100% | 20% | 01.05.2025 | Clause 98(b) |
| 5 | Consumer/Household | 3406 | Candles, tapers and the like | 25% | 20% | 01.05.2025 | Clause 98(b) |
| 6 | Industrial/Reference | 3822 90 | Reference Materials | 30% | 10% | 01.05.2025 | Clause 98(b) |
| 7 | Chemical | 3824 60 | Sorbitol (other than that of subheading 2905 44) | 30% | 20% | 01.05.2025 | Clause 98(b) |
| 8 | Plastics | 3920 | Plastic plates, sheets, films, foil and strip (non‑cellular, not reinforced) | 25% | 20% | 01.05.2025 | Clause 98(b) |
| 9 | Plastics | 3921 | Other plastic plates, sheets, films, foil and strip | 25% | 20% | 01.05.2025 | Clause 98(b) |
| 10 | Footwear | 6401 | Waterproof Footwear (outer soles/uppers of Rubber or Plastics, not fixed by stitching, riveting, etc.) | 35% | 20% | 01.05.2025 | Clause 98(b) |
| 11 | Footwear | 6402 | Other footwear (outer soles/uppers of Rubber or Plastics) | 35% | 20% | 01.05.2025 | Clause 98(b) |
| 12 | Footwear | 6403 | Footwear with uppers of Leather (with outer soles of Rubber, Plastics, etc.) | 35% | 20% | 01.05.2025 | Clause 98(b) |
| 13 | Footwear | 6404 | Footwear with uppers of Textile materials (with outer soles of Rubber, Plastics, etc.) | 35% | 20% | 01.05.2025 | Clause 98(b) |
| 14 | Footwear | 6405 | Other Footwear | 35% | 20% | 01.05.2025 | Clause 98(b) |
| 15 | Building Materials/Stone | 6802 (various sub‑items) | Worked monumental or building stone | 40% | 20% | 01.05.2025 | Clause 98(b) |
| 16 | Jewellery | 7113 | Articles of Jewellery and parts thereof | 25% | 20% | 01.05.2025 | Clause 98(b) |
| 17 | Jewellery | 7114 | Articles of goldsmiths’ and silversmiths’ ware and parts thereof | 25% | 20% | 01.05.2025 | Clause 98(b) |
| 18 | Metal Scrap | 7404 (00 12; 00 19; 00 22) | Copper Waste and Scrap | 2.50% | Nil | 01.05.2025 | Clause 98(b) |
| 19 | Metal Scrap | 8002 | Tin Waste and Scrap | 5% | Nil | 01.05.2025 | Clause 98(b) |
| 20 | Metal Scrap | 8101 97 00 | Tungsten Waste and Scrap | 5% | Nil | 01.05.2025 | Clause 98(b) |
| 21 | Metal Scrap | 8102 97 00 | Molybdenum Waste and Scrap | 5% | Nil | 01.05.2025 | Clause 98(b) |
| 22 | Metal Scrap | 8103 30 00 | Tantalum Waste and Scrap | 5% | Nil | 01.05.2025 | Clause 98(b) |
| 23 | Metal Scrap | 8105 30 00 | Cobalt Waste and Scrap | 5% | Nil | 01.05.2025 | Clause 98(b) |
| 24 | Metal Scrap | 8106 90 10 | Waste & Scrap of Bismuth and Bismuth Alloys | 5% | Nil | 01.05.2025 | Clause 98(b) |
| 25 | Metal Scrap | 8109 31 00; 8109 39 00 | Zirconium Waste and Scrap | 10% | Nil | 01.05.2025 | Clause 98(b) |
| 26 | Metal Scrap | 8110 20 00 | Antimony Waste and Scrap | 2.50% | Nil | 01.05.2025 | Clause 98(b) |
| 27 | Metal Scrap | 8112 13 00 | Beryllium Waste and Scrap | 5% | Nil | 01.05.2025 | Clause 98(b) |
| 28 | Metal Scrap | 8112 41 20 | Rhenium Waste and Scrap | 10% | Nil | 01.05.2025 | Clause 98(b) |
| 29 | Metal Scrap | 8112 61 00 | Cadmium Waste and Scrap | 5% | Nil | 01.05.2025 | Clause 98(b) |
| 30 | Solar/Energy | 8541 42 00 | Solar Cells | 25% | 20% | 01.05.2025 | Clause 98(b) |
| 31 | Solar/Energy | 8541 43 00; 8541 49 00 | Solar Module & Other semiconductor devices, photovoltaic cells | 40% | 20% | 01.05.2025 | Clause 98(b) |
| 32 | Automobile (Passenger) | 8702 | Motor vehicles for transport of 10 or more persons | 40% | 20% | 01.05.2025 | Clause 98(b) |
| 33 | Automobile (Passenger) | 8703 | Motor cars & other motor vehicles principally designed for passenger transport | 125% | 70% | 01.05.2025 | Clause 98(b) |
| 34 | Automobile (Goods) | 8704 | Motor vehicles for transport of goods | 40% | 20% | 01.05.2025 | Clause 98(b) |
| 35 | Automobile/Two‑wheelers | 8711 | Motorcycles and cycles with auxiliary motor (with/without side‑car) | 100% | 70% | 01.05.2025 | Clause 98(b) |
| 36 | Bicycles | 8712 00 10 | Bicycles | 35% | 20% | 01.05.2025 | Clause 98(b) |
| 37 | Marine/Leisure | 8903 | Yachts and other vessels for pleasure/sports; rowing boats and canoes | 25% | 20% | 01.05.2025 | Clause 98(b) |
| 38 | Electronics/Energy | 9028 30 10 | Electricity meters for AC (Smart meter) | 25% | 20% | 01.05.2025 | Clause 98(b) |
| 39 | Furniture | 9401 | Seats (other than those of headings 9402), whether or not convertible into beds, and parts thereof | 25% | 20% | 01.05.2025 | Clause 98(b) |
| 40 | Furniture | 9403 | Other furniture and parts thereof | 25% | 20% | 01.05.2025 | Clause 98(b) |
| 41 | Furniture | 9404 | Mattress supports, articles of bedding and similar furnishings | 25% | 20% | 01.05.2025 | Clause 98(b) |
| 42 | Lighting/Furniture | 9405 | Luminaries and lighting fittings (incl. searchlights, spotlights, etc.) | 25% | 20% | 01.05.2025 | Clause 98(b) |
| 43 | Toys/Electronics | 9503 00 91 | Parts of electronic toys | 70% | 20% | 01.05.2025 | Clause 98(b) |
| 44 | Chemicals/Industrial | 9802 00 00 | Laboratory Chemicals | 150% | 70% | 01.05.2025 | Clause 98(b) |
| 45 | Personal/Passenger | 9803 00 00 | All dutiable articles imported by a passenger/crew in baggage | 100% | 70% | 01.05.2025 | Clause 98(b) |
| 46 | Personal Use | 9804 00 00 | All dutiable goods imported for personal use | 35% | 20% | 01.05.2025 | Clause 98(b) |
| II. OTHER PROPOSALS – CHANGES IN BASIC CUSTOMS DUTY RATES IN NOTIFICATIONS | |||||||
| A. Changes in Basic Customs Duty (Effective from 02.02.2025) | |||||||
| S. No. | Sector | Chapter/Heading/Item | Commodity | From Rate | To Rate | Effective Date | Notification/Clause |
| 1 | Aquafarming & Marine Exports | 0304 99 00 | Frozen Fish Paste (Surimi) for use in manufacture of Surimi Analogue products | 30% | 5% | 02.02.2025 | |
| 2 | Aquafarming & Marine Exports | 2301 20 | Fish Hydrolysate for use in manufacture of aquatic feed | 15% | 5% | 02.02.2025 | |
| 3 | Leather | 4104 11 00; 4104 19 00; 4105 10 00; 4106 21 00; 4106 31 00; 4106 91 00 | Wet blue leather (hides and skins) | 10% | Nil | 02.02.2025 | |
| 4 | Gems and Jewellery | 7113 | Platinum Findings | 25% | 5% | 02.02.2025 | |
| 5 | Metal Scrap | 7802 | Lead waste and scrap | 5% | Nil | 02.02.2025 | |
| 6 | Metal Scrap | 7902 | Zinc waste and scrap | 5% | Nil | 02.02.2025 | |
| 7 | Metal Scrap | 8105 20 30 | Cobalt powders | 5% | Nil | 02.02.2025 | |
| 8 | Lithium‑Ion Battery Waste | 8549 13 00; 8549 14 00; 8549 19 00 | Waste and scrap of Lithium‑Ion Battery | 5% | Nil | 02.02.2025 | |
| 9 | IT and Electronics | 8517 | Ethernet switches (Carrier grade) | 20% | 10% | 02.02.2025 | |
| 10 | IT and Electronics | 8524; 8529 | Open cell for Interactive Flat Panel Display Module (with/without touch, etc.) | 15%/10% | 5% | 02.02.2025 | |
| 11 | IT and Electronics | 8529 | Inputs and Parts of the Open Cells for use in manufacture of LED/LCD TV panels | 2.50% | Nil | 02.02.2025 | |
| 12 | IT and Electronics | Any chapter | Inputs/Parts for manufacture of PCB Assembly, Camera module, connectors for mobile phones | 2.50% | Nil | 02.02.2025 | |
| 13 | IT/Capital Goods | Any chapter | Add 35 capital goods for use in manufacture of lithium‑ion battery for EVs & 28 for mobile phones | As applicable | Nil | 02.02.2025 | |
| 14 | IT and Electronics | Any chapter | Amend entry S. No. 6D (for goods used to manufacture mobile phone mechanics) | As applicable | 10% | 02.02.2025 | |
| 15 | Automobile | 8702 | Motor vehicles for transport of 10 or more persons | 25%/40% | 20% | 02.02.2025 | |
| 16 | Automobile | 8703 | Motor cars and other motor vehicles (CIF > US$40,000 or high engine capacity) | 100% | 70% | 02.02.2025 | |
| 17 | Automobile | 8704 | Motor vehicles for transport of goods | 25%/40% | 20% | 02.02.2025 | |
| 18 | Automobile | 8711 | Motor cycles with engine capacity ≤1600cc (CBU form) | 50% | 40% | 02.02.2025 | |
| 19 | Automobile | 8711 | Motor cycles with engine capacity ≤1600cc (SKD form) | 25% | 20% | 02.02.2025 | |
| 20 | Automobile | 8711 | Motor cycles with engine capacity ≤1600cc (CKD form) | 15% | 10% | 02.02.2025 | |
| 21 | Automobile | 8711 | Motor cycles with engine capacity ≥1600cc (CBU form) | 50% | 30% | 02.02.2025 | |
| 22 | Automobile | 8711 | Motor cycles with engine capacity ≥1600cc (SKD form) | 25% | 20% | 02.02.2025 | |
| 23 | Automobile | 8711 | Motor cycles with engine capacity ≥1600cc (CKD form) | 15% | 10% | 02.02.2025 | |
| 24 | Toys | 9503 00 91 | Parts of electronic toys for manufacture of electronic toys | 25% | 20% | 02.02.2025 | |
| B. Changes in Export Duty | |||||||
| (Effective from 02.02.2025) | |||||||
| S. No. | Sector | Tariff Item(s) | Commodity | From Rate | To Rate | Effective Date | Notification |
| 1 | Leather | 4104 41 00; 4104 49 00; 4105 30 00; 4106 22 00; 4106 32 00; 4106 92 00 | Crust leather (hides and skins) | 20% | Nil | 02.02.2025 | |
| III. AGRICULTURE INFRASTRUCTURE AND DEVELOPMENT CESS (AIDC) | |||||||
| (Notification No. 11/2021 – Effective from 02.02.2025) | |||||||
| S. No. | Sector | Tariff Item(s) | Commodity | AIDC From | AIDC To | Effective Date | Notification |
| 1 | Building Materials/Stone | 2515 11 00; 2515 12 | Marble and travertine, crude or roughly trimmed | Nil | 20% | 02.02.2025 | Notification No. 11/2021 |
| 2 | Building Materials/Stone | 2516 11 00; 2516 12 00 | Granite, crude or roughly trimmed | Nil | 20% | 02.02.2025 | Notification No. 11/2021 |
| 3 | Consumer Goods | 3406 | Candles, Tapers and the like | Nil | 7.50% | 02.02.2025 | Notification No. 11/2021 |
| 4 | Plastics | 3920 or 3921 | PVC Flex Films, PVC Flex Sheets, PVC Flex Banner | Nil | 7.50% | 02.02.2025 | Notification No. 11/2021 |
| 5 | Footwear | 6401 | Waterproof Footwear (Rubber/Plastics uppers) | Nil | 18.50% | 02.02.2025 | Notification No. 11/2021 |
| 6 | Footwear | 6402 | Other Footwear (Rubber/Plastics uppers) | Nil | 18.50% | 02.02.2025 | Notification No. 11/2021 |
| 7 | Footwear | 6403 | Footwear with Leather uppers | Nil | 18.50% | 02.02.2025 | Notification No. 11/2021 |
| 8 | Footwear | 6404 | Footwear with Textile uppers | Nil | 18.50% | 02.02.2025 | Notification No. 11/2021 |
| 9 | Footwear | 6405 | Other Footwear | Nil | 18.50% | 02.02.2025 | Notification No. 11/2021 |
| 10 | Building Materials/Stone | 6802 (various sub‑items) | Marble Slab | Nil | 20% | 02.02.2025 | Notification No. 11/2021 |
| 11 | Gems & Jewellery | 7113 | Platinum findings | Nil | 1.40% | 02.02.2025 | Notification No. 11/2021 |
| 12 | Solar/Energy | 8541 42 00 | Solar Cells | Nil | 7.50% | 02.02.2025 | Notification No. 11/2021 |
| 13 | Solar/Energy | 8541 43 00; 8541 49 00 | Solar Module & Other semiconductor devices, photovoltaic cells | Nil | 20% | 02.02.2025 | Notification No. 11/2021 |
| 14 | Automobile | 8702 | Motor vehicles for transport of 10+ persons | Nil | 20% | 02.02.2025 | Notification No. 11/2021 |
| 15 | Automobile | 8702 (S. No. 524(1)(b)) | Motor vehicles for transport of 10+ persons (import under specific rule) | Nil | 5% | 02.02.2025 | Notification No. 11/2021 |
| 16 | Automobile | 8702 (S. No. 524(2)) | Motor vehicles for transport of 10+ persons (import under specific rule) | Nil | 20% | 02.02.2025 | Notification No. 11/2021 |
| 17 | Automobile | 8703 (Used Motor vehicles) | Used Motor vehicles | Nil | 67.50% | 02.02.2025 | Notification No. 11/2021 |
| 18 | Automobile | 8703 | Motor cars & other motor vehicles (non‑CKD/SKD, CIF > US$40,000) | Nil | 40% | 02.02.2025 | Notification No. 11/2021 |
| 19 | Automobile | 8704 | Motor vehicles for transport of goods | Nil | 20% | 02.02.2025 | Notification No. 11/2021 |
| 20 | Automobile | 8704 (S. No. 525(1)(b)) | Motor vehicles for transport of goods (import under specific rule) | Nil | 5% | 02.02.2025 | Notification No. 11/2021 |
| 21 | Automobile | 8704 (S. No. 525(2)) | Motor vehicles for transport of 10+ persons (import under specific rule) | Nil | 20% | 02.02.2025 | Notification No. 11/2021 |
| 22 | Automobile/Two‑wheelers | 8711 | Used motorcycles and cycles with auxiliary motor | Nil | 40% | 02.02.2025 | Notification No. 11/2021 |
| 23 | Bicycles | 8712 00 10 | Bicycles | Nil | 15% | 02.02.2025 | Notification No. 11/2021 |
| 24 | Marine/Leisure | 8903 | Yachts and other vessels for pleasure/sports | Nil | 7.50% | 02.02.2025 | Notification No. 11/2021 |
| 25 | Electronics/Energy | 9028 30 10 | Electricity meters for AC (Smart meter) | Nil | 7.50% | 02.02.2025 | Notification No. 11/2021 |
| 26 | Furniture | 9401 | Seats (other than those of headings 9402), and parts thereof | Nil | 5% | 02.02.2025 | Notification No. 11/2021 |
| 27 | Furniture | 9403 | Other furniture and parts thereof | Nil | 5% | 02.02.2025 | Notification No. 11/2021 |
| 28 | Furniture | 9404 | Mattress supports, articles of bedding, etc. | Nil | 5% | 02.02.2025 | Notification No. 11/2021 |
| 29 | Lighting/Furniture | 9405 | Luminaries and lighting fittings | Nil | 5% | 02.02.2025 | Notification No. 11/2021 |
| 30 | Toys | 9503 00 91 | Parts of electronic toys | Nil | 20% | 02.02.2025 | Notification No. 11/2021 |
| 31 | Toys | 9503 00 91 (S. No. 591) | Parts of electronic toys for manufacture (per Notification No. 50/2017) | Nil | 7.50% | 02.02.2025 | Notification No. 11/2021 |
| 32 | Chemicals/Industrial | 9802 00 00 | Laboratory Chemicals (other than those attracting 10% BCD for specified end use) | Nil | 70% | 02.02.2025 | Notification No. 11/2021 |
Final Thoughts
The 2025 amendments to duty rates under the Customs Tariff Act, 1975 bring significant changes across multiple sectors—from textiles and electronics to building materials, automobiles, and beyond. Whether your business is involved in importing raw materials or finished products, these adjustments may have a direct impact on your cost structure and pricing strategy.
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This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.
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Published on: February 1, 2025
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