CBIC Notifies Exemption of Basic Customs Duty, AIDC, and Health Cess on Goods Imported from Iceland [Read Notification]

This notification provides relief from BasicCustoms Duty (BCD), Agriculture Infrastructure and Development Cess (AIDC), and Health Cess on a wide range of specified products, as part of India’s trade commitments under a bilateral trade agreement.

According to the notification, the exemption applies to goods that originate in Iceland and are imported into India. To avail of this benefit, importers must ensure that the goods meet the Rules of Origin criteria defined under the Customs (Administration of Rules of Origin under Trade Agreement) Rules, 2020.

This means the goods should be substantially produced or manufactured in Iceland, and the importer must furnish proof of origin to the satisfaction of the Deputy or Assistant Commissioner of Customs at the time of import.

The notification includes a detailed tariff schedule listing hundreds of products across various HS (Harmonized System) codes, such as live animals, fish, agricultural goods, plant products, oils, minerals, and processed food items.

For each product, the applicable rates of Basic Customs Duty, AIDC, and Health Cess have been specified, many of which are now reduced to zero percent.

By lowering import costs, it is expected to make Icelandic goods more competitive in the Indian market and strengthen supply chains under the trade partnership.

The notification came into effect on 30th September 2025, and importers can now claim the exemption while fulfilling the necessary documentation and compliance requirements.

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