recent tariff changes (Budget 2025-26) in India
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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.
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
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.
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.
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.
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.
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.