What changed (headline items)

1) “Tariff rationalisation” across many chapters

The Budget tweaked several Basic Customs Duty (BCD) tariff rates (sometimes with AIDC/SWS interplay) to simplify slabs and align with Make-in-India priorities. Notable calls directly from the official docs:

• Knitted fabrics (Ch. 60): tariff rate revised from “10%/20%” to “20% or ₹115/kg, whichever is higher.”

• Smart electricity meters (9028 30 10): tariff rate brought to 20% BCD, and 7.5% AIDC applies from Feb 2, 2025 (effective rate construct laid out in notifications).

• Used bicycles: now 20% BCD + 15% AIDC (from Feb 2, 2025). 

• Furniture & seats (Ch. 94): tariff rate trimmed to 20% (SWS exempted per notifications). 

• Parts of electronic toys: tariff rate cut 70% → 20% (effective May 1, 2025). 

• Yachts/pleasure craft (Ch. 89): tariff rate 25% → 20%.

• Lab chemicals (Ch. 98): tariff rate 150% → 70% (with specific Budget-day structures spelling BCD/AIDC/SWS; note the special “actual user” case stays at 10% BCD + 10% SWS).

2) Big push on critical minerals (scrap/waste) to support domestic manufacturing

• BCD fully exempted on waste/scrap of a dozen critical minerals (e.g., lithium-ion battery waste & scrap, cobalt powder/waste, lead, zinc, antimony, tungsten, copper scrap), building on an earlier exemption of 25 minerals. This is about securing inputs for EVs, electronics, and clean-tech supply chains. 

3) Metals & scraps adjustments

• Copper waste & scrap: effectively Nil BCD from Feb 2, 2025; tariff rate goes to Nil from May 1 (per Finance Bill schedule).

• Lead waste & scrap (7802): Nil BCD w.e.f. Feb 2, 2025.

• Zinc waste & scrap (7902): Nil BCD w.e.f. Feb 2, 2025.

4) Chemicals & intermediates; environmental tech & renewables under review

• The government signaled a broader review of tariff surcharges (including luxury goods, solar cells, chemicals) after Budget important if you import into these baskets; exact surcharges and BCD reductions vary by item. 

5) Post-Budget clean-up to simplify compliance

• DGFT aligned import policy with Budget’s revised Customs Tariff practical relevance if you file under precious metals or rely on DGFT policy conditions. 

• CBIC later consolidated 31 duty notifications into one to reduce procedural friction good for compliance teams and brokers. 

Pro tip: Many changes have two dates—Budget-day effective structures (from Feb 2, 2025) and tariff-rate changes effective May 1, 2025 via the Finance Bill schedules. Always check both when costing. 

What this means for you (by sector)

• Textiles & apparel: The “20% or ₹115/kg” floor on knitted fabrics protects domestic mills; import costing may rise on low-value per-kg items. Re-price and watch HS reclassification risk.

• Electronics & smart metering: The 20% BCD + 7.5% AIDC design on smart meters nudges local value-add; factor AIDC into landed cost (no ITC credit). For electronic toy parts, the 70%→20% cut eases input costs for local assembly.

• Furniture & interiors: Lower BCD to 20% helps importers but still shields local players; run a landed-cost refresh for SKU decisions. 

• Metals/minerals & recycling: Nil BCD on multiple scraps is a win for circular supply chains and cost-effective inputs. Consider switching from virgin to scrap where specs allow.

• Renewables/chemicals/luxury: Expect further tweaks as the surcharge review proceeds; hedge contracts and keep a buffer in POs. 

Action checklist for import teams

1. Recalculate Landed Cost (HS-wise):
   Update your CIF → BCD → AIDC → SWS → IGST ladder for each HS; build two columns for Feb 2, 2025 and May 1, 2025 effects. 

2. Validate HS codes and origin planning:
   Textiles, smart meters, toys, furniture, metals: re-confirm sub-headings and any end-use/actual-user conditions to avoid surprise duties.

3. Contracts & pricing:
   If you quote delivered pricing, insert a tariff-variation clause and revisit MOQ/lead times where duty drops (e.g., toy parts, metal scrap) improve viability. 

4. Policy watchlist:
   Track CBIC/DGFT circulars as the surcharge review unfolds; consolidation of notifications is meant to help—use the unified doc as your first stop. 

5. Scenario planning:
   Run sensitivity analyses for SKUs hit by AIDC (no credit) vs helped by BCD cuts, and decide: import finished vs CKD/SKD vs domestic sourcing.