Notification No. 20/2025-Customs | Dated: 27th March 2025

Government of India - Ministry of Finance (Department of Revenue)

Notification No. 20/2025-Customs | Dated: 27th March 2025

In exercise of the powers conferred by Section 25(1) of the Customs Act, 1962, the Central Government has issued amendments to two prior notifications to modify customs duty exemptions. These changes are introduced in the public interest and will be effective from April 1, 2025.

Key Amendments

1. Changes to Notification No. 11/2018-Customs (Dated: 2nd February 2018)

   • New Product Inclusion: The customs tariff entry "0713 20 20" (certain types of legumes or pulses) is now added under S. No. 1 of the notification.

2. Changes to Notification No. 11/2021-Customs (Dated: 1st February 2021)

   • Duty Change: For S. No. 3 in column (4), the applicable duty is now changed to Nil (0%) instead of its previous rate.

Condition Before This Notification

1. Customs Duty on Specific Agricultural Products

• Before this notification, customs duties were applicable on certain pulses (legumes) under the existing tariff classification.

• The inclusion of 0713 20 20 means this product was previously not explicitly covered under the 2018 notification, leading to potential duty confusion.

2. Import Duty on Items under Notification 11/2021

• The earlier duty structure on specific products under S. No. 3 in the 2021 notification was not NIL—meaning importers were paying a certain percentage as duty.

• This amendment has removed the duty entirely, making imports of these products cheaper.

Impact of This Notification

1. Benefits for Importers and Businesses

• Importers dealing in pulses (HS Code 0713 20 20) will now receive clear duty benefits as their classification is explicitly mentioned.

• Example: A food processing company importing certain legumes (pulses) will now be able to claim exemptions that were previously unclear.

2. Cost Reduction for Consumers

• The removal of import duty (Nil rate) under Notification 11/2021 for specific items will lead to lower costs in the domestic market.

• Example: If an essential commodity (e.g., edible oil, grains, or raw materials for industries) is included in S. No. 3, businesses will be able to import at a lower cost, reducing prices for consumers.

3. Trade and Supply Chain Impact

• Encourages more imports, leading to greater supply and stabilization of market prices for affected products.

• Example: If pulses become cheaper due to duty exemptions, more traders may import them, leading to lower retail prices for consumers.

4. Government Revenue Consideration

• While importers benefit from lower taxes, the government may face a reduction in customs revenue from these items. However, this could be offset by increased import volumes.

Conclusion

This notification simplifies customs duty exemptions, lowers costs for businesses and consumers, and supports economic efficiency by ensuring clear duty structures. The decision to expand exemptions and reduce duties is expected to have a positive impact on trade, pricing, and market stability in India.