Customs Duty Changes in Budget 2025: Key Highlights and Implications
Posted on February 4, 2025 
The Union Budget 2025, which was presented by Finance Minister Nirmala Sitharaman on 1st February 2025 , introduced some notable changes to the Indian customs duties. These updates aim to simplify trade processes, support domestic industries, and align with India’s overall economic goals. In this blog, we have attempted to highlight the key changes in Basic Customs Duty (BCD), Agriculture Infrastructure and Development Cess (AIDC), and the Social Welfare Surcharge (SWS) that impact importers, exporters, and various industries.
Key Reductions in Basic Customs Duty (BCD) in Budget 2025
Several products have seen a reduction in BCD to promote economic activity and reduce manufacturing costs. Some notable changes include:
- Frozen Fish Paste (Surimi): BCD has been reduced from 30% to 5%, supporting exporters of surimi-based products under customs notification 50/2017 as amended by notification 5/2025, customs, dated 1st February 2025.
- Glycerol: Customs tariff has been lowered from 30% to 20%, effective from May 1, 2025.
- Marble and Granite: Crude and trimmed stone tariffs dropped from 40% to 20%, effective from February 2, 2025.
- Liquefied Petroleum Gas (LPG): Non-automotive LPG customs tariff has been lowered from 15% to 5%, effective from May 1, 2025
- Platinum Findings: BCD has been reduced from 25% to 5%, with a 1.4% AIDC imposed, under customs notification 50/2017 as amended by notification 5/2025, customs, dated 1 st February 2025.
Agriculture Infrastructure and Development Cess (AIDC)
The AIDC was revised on specific imports to ensure fair pricing and improve domestic infrastructure. Key updates include:
- Marble Slabs: Effective AIDC set at 20% from February 2, 2025.
- Motor Vehicles: Import of used vehicles now attracts AIDC at 67.5%
Social Welfare Surcharge (SWS) Changes in Budget 2025
Several products have undergone changes in their SWS structure. Some key revisions are:
- Synthetic Flavouring Substances: 10% SWS levied in addition to 20% BCD from February 2, 2025.
- Solar Modules: 7.5% AIDC has been imposed. SWS is exempted to promote renewable energy adoption.
Industry-Specific Changes in Budget 2025
Electronics and Renewable Energy
- Customs duty for inputs and parts used in manufacturing interactive flat panel displays was reduced to 5%, promoting domestic manufacturing.
- Solar Cells: BCD reduced to 20%, accompanied by a 7.5% AIDC.
Automotive
- Passenger Vehicles: Customs Tariff for passenger vehicles have been lowered from 40% to 20%, but additional 20% AIDC has also been introduced for imports.
- Motorcycles: BCD has been lowered to 70% from 100% for imports, reducing the cost for two-wheeler enthusiasts.
Notable Legislative Updates
The customs procedures saw a few legislative changes:
- A new section, 18A, allows voluntary post-clearance revision of import/export entries.
- Time limits for provisional assessment finalizations are set at two years, extendable by one year under special circumstances.
Conslusion
The customs duty changes in Budget 2025 clearly reflects the government’s focus on reducing the dependency on imports while strengthening domestic industries. These changes will benefit exporters, manufacturers, and renewable energy players.
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