CBIC Issues Comprehensive Customs Exemption and Consolidation Notification: Effective Nov. 1, 2025
CBIC - Comprehensive Customs Exemption and Consolidation Notification - taxscan
CBIC - Comprehensive Customs Exemption and Consolidation Notification - taxscan
The Central Boardof Indirect Taxes and Customs (CBIC) has issued a new notification, bringing forth a single, consolidated framework on customs exemptions and concessional duties.
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The effects of the notification shall come into force on November 1, 2025 and merges the provisions of Notification No. 50/2017-Customs and 30 standalone notifications into one comprehensive and exhaustive structure. CBIC has positioned the notification as a trade-friendly document, which eases identification, application and administration of duty exemptions for importers and officers.
Consolidating 30 Notifications into One Framework
The new notification supersedes a range of earlier exemption instruments issued between 1957 and 2025, including multiple notifications from 2017, 2019, 2022 and early 2025.
The notification consolidates numerous entries regarding the medical and pharmaceutical products, bulk drugs used in vaccines and insulin, renewable energy systems, scientific and research equipment, aviation and defence supplies, agricultural inputs, and atomic and space research materials industries.
The consolidated notification retains the existing concessional Basic Customs Duty (BCD) and Integrated GST (IGST) exemptions with only two minor modifications:
- Expansion of duty exemption for Air India Engineering Services Ltd. covering specific aircraft operated by the Indian Air Force
- Removal of an overlapping 5% BCD entry on certain bulk drugs, which will continue to attract nil duty under the new structure.
The merged notification aligns all conditional exemptions with the procedures and end-use conditions prescribed under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2022 and creates a single, uniform reference point for importers, industry stakeholders and customs authorities, essem=ntially ensuring consistency and clarity in how exemptions are applied and administered.
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The notification also aligns other amendments to ensure that corresponding IGST and cess provisions now refer to the updated exemption lists.
For importers, the measure simplifies compliance by bringing all applicable concessions and procedural requirements into a single framework, reducing ambiguity in customs administration.
The notification will take effect on November 1, 2025; stakeholders have been advised to review the relevant entries and conditions to ensure a smooth transition to the new consolidated system.
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