In a significant move aimed at simplifying India’s trade regulatory framework, the Central Board of Indirect Taxes and Customs (CBIC) has merged 31 separate customs duty notifications into a single, comprehensive notification, effective November 1.
The consolidation brings together various exemption and concessional duty provisions that were previously spread across multiple notifications, reducing regulatory overlap and complexity for importers and exporters. The CBIC clarified that all existing benefits and exemptions will continue unchanged, ensuring businesses face no disruption during the transition.
According to the Board, the unified framework is designed to enhance transparency and ease of doing business, enabling trade participants — including importers, exporters, and customs brokers — to reference a single document for determining applicable duty rates and exemptions, instead of navigating through a patchwork of older circulars.
To assist stakeholders, CBIC has also released a detailed set of FAQs, addressing key concerns such as the applicability of Integrated GST (IGST), Basic Customs Duty (BCD), and the validity of existing exemptions under the new system.
While most provisions remain unchanged, two minor amendments have been introduced:
The exemption related to Air India Engineering Services Limited now specifically includes three B-737 and two B-777 aircraft maintained and operated by the Indian Air Force.
The earlier 5% BCD exemption for bulk drugs used in manufacturing poliomyelitis vaccines (inactivated and live) and mono-component insulins has been withdrawn.
Officials said the reform aligns with the government’s ongoing efforts to simplify indirect tax administration, modernize customs processes, and create a more efficient, trade-friendly environment in line with India’s broader goal of enhancing its global competitiveness.
