CBIC to merge 31 customs duty notifications to ease compliance from Nov 1

The Central Board of Indirect Taxes and Customs (CBIC) has merged 31 different exemption and concessional duty notifications into a single consolidated Customs notification. The new framework, issued through Notificaton dated October 24, 2025, will come into effect from November 1, 2025.

The consolidation, considered a “trade-friendly and transparency-driven measure,” replaces the long-standing Notification No. 50/2017-Customs and 30 other standalone notifications with a unified reference document.

The intent is to eliminate the cumbersome process of referring to multiple notifications, which often caused interpretational challenges for importers and customs officers alike.

CBIC said the step will improve clarity, transparency, and ease of doing business, aligning with the government’s ongoing “Next Generation Customs Reforms” that focus on simplifying procedures and digitising compliance.

“This consolidation is a welcome step towards regulatory simplification. By merging scattered notifications into a single framework, CBIC has enhanced clarity and improved ease of doing business for trade,” says Saurabh Agarwal, Tax Partner, EY India.

The unified notification maintains existing exemptions and benefits while presenting them in a more structured format, ensuring ease of reference for businesses and consistency in customs administration. Also, exemption Notifications relating to AIDC, SWS, Health Cess etc., also have been amended to align with this change.

FAQs issued for ease of understanding

To facilitate a smooth transition, the CBIC has also released a comprehensive set of Frequently Asked Questions (FAQs) explaining the rationale, scope, and implications of the new notification. The FAQs are aimed at helping businesses, importers, and customs brokers understand the continuity of existing exemptions and the few specific changes introduced.

According to the FAQs, Notification No. 45/2025-Customs is a fresh and comprehensive notification that incorporates the provisions of Notification No. 50/2017-Customs dated June 30, 2017, along with 30 other standalone notifications listed in the annexure.

The CBIC has clarified that there is no withdrawal or discontinuation of any existing exemptions. All existing benefits under the earlier notifications continue to apply, except for two minor changes made after a detailed policy review.

Two key modifications

The first change pertains to the aviation sector. Under the old Notification No. 39/96-Customs, duty exemption was available on supplies made out of warehoused goods belonging to Air India International, covering two specific Boeing 737 aircraft maintained and operated by the Indian Air Force (IAF) for government use.

The new consolidated Notification No. 45/2025-Customs modifies this entry to extend the benefit to Air India Engineering Services Limited (AIESL) — the maintenance, repair and overhaul (MRO) arm of Air India — and expands coverage to three B-737 and two B-777 aircraft maintained and operated by the IAF.

The second change involves the pharmaceutical sector.

Under S. No. 166A of the earlier Notification No. 50/2017-Customs, a 5% Basic Customs Duty (BCD) applied on bulk drugs used in the manufacture of Poliomyelitis Vaccine (inactivated and live) and Monocomponent Insulins. However, another entry provided a nil duty on the same items, creating duplication and confusion.

Following a rationalisation review, the redundant 5% entry has been removed. Now, these bulk drugs will continue to attract nil duty under S. No. 103(ii) of the new notification.

Alignment across other tax notifications

To ensure consistency across the indirect tax framework, the government has simultaneously issued Notification No. 44/2025-Customs, making consequential amendments in the existing notifications related to Health Cess, Social Welfare Surcharge (SWS), and Agriculture Infrastructure Development Cess (AIDC).

Parallel updates have also been issued through Notification Nos. 18/2025 – Central Tax (Rate), Union Territory Tax (Rate), and Integrated Tax (Rate) under the GST regime, substituting old references with the new lists corresponding to the entries in the consolidated Customs notification.

These changes ensure seamless alignment between Customs and GST laws, especially for integrated tax exemptions provided to specified banks and institutions.

No change in validity or continuity

Importantly, CBIC clarified that there is no change in the validity period of any exemption or concession. All conditional exemptions and concessional duty benefits will continue as per existing provisions under Section 25(4A) of the Customs Act, 1962, unless specifically altered in future notifications.

Industry experts note that such consolidation exercises, while administrative in nature, hold substantial importance for trade compliance and policy stability. By creating a single, comprehensive notification, the CBIC has effectively reduced interpretational disputes, improved ease of referencing, and enhanced transparency for stakeholders.

Towards simplification and efficiency

The consolidation of 31 Customs notifications into one marks another step in CBIC’s ongoing drive to modernise India’s customs ecosystem. Over the past few years, the government has introduced several initiatives — from the Turant Customs programme and Faceless Assessment to digitised duty drawback processing — all aimed at making India’s import-export framework more efficient and predictable.

Effective from November 1, 2025, this single notification structure is expected to simplify tariff classification, aid uniform interpretation across ports, and strengthen India’s trade facilitation credentials at a global level.