Customs Simplification: 31 Exemptions Consolidated into One
The recent issue of Customs Notification is a praiseworthy step by the government of India towards the customs transparency and consolidation. Around 31 notifications spanning from 1957 to 2025 have been clubbed into a single Notification No. 45/2025 dated 24th October, 2025, with effect from 1st November, 2025. In this article, let us explore the purpose, scope, conditions and long-term impact of this Notification:
Purpose: The customs notifications were disparate, and they were issued to meet the requirements at the particular points of time. Some provisions are duplicate, dispersed here and there, some are relevant while some others are redundant. The government has consolidated them and has come out with a single reference, which are relevant to the current time and context of ease of doing business in India, in the backdrop of new national priorities.
Scope: The Notification as four key Tables, each focusing on a specific type of exemption or category of goods. Each table is supported by Annexures listing eligible goods and the conditions for availing exemption.
Table I: Broad-based goods exempted from Basic Customs Duty and IGST
| S. No. | Category | Example Goods | Purpose / Benefit |
| 1. | Electric Vehicles & Batteries | Lithium-ion battery cells, EV chargers | Encourages domestic EV manufacturing and greener mobility |
| 2. | Medical Equipment & Drugs | MRI scanners, oncology drugs, pacemakers | Reduces cost of essential healthcare imports |
| 3 | Electronics Manufacturing Inputs | Semiconductor wafers, camera modules, chip components | Boosts local production under the PLI scheme |
Table II: Sector Specific Exemption under Special Conditions or Schemes.
Applies to goods imported under specific projects, concessional schemes, or end-use conditions.
| S. No. | Category | Example Goods / Scheme | Impact / Benefit |
| 1. | Mega Infrastructure Projects | Equipment for metro rail, airport expansion | Reduces capital cost of public infrastructure |
| 2. | Research & Education | Scientific instruments for recognized universities | Supports innovation and education |
| 3. | Defence Imports | Specialized defence equipment, radar parts | Enhances national security readiness |
Table III: Exemption from custom duty, IGST & Compensation Cess.
Scope: Includes goods where all three levies (BCD, IGST, Cess) are reduced or exempted.
| S. No. | Category | Example Goods | Impact / Benefit |
| 1. | Green Energy Equipment | Hydrogen fuel cell components, battery storage systems | Encourages transition to clean energy |
| 2. | Automotive Inputs | Electric bus kits, hybrid vehicle parts | Supports eco-friendly public transport |
| 3. | Critical Pharmaceuticals | Rare disease drugs, imported APIs | Makes life-saving medicines more affordable |
Table IV: Valuation Based exemptions – Carrier Media Containing Software or Data.
Scope: Applies to imports of software, data, or digital media, where customs duty is charged only on the cost of the physical medium (e.g., CD, hard drive) and not the value of software or data itself.
| S. No. | Type | Example Goods | Explanation |
| 1. | Digital Media Imports (3706) | Software DVDs, hard drives with preloaded programs | Duty applies only to cost of medium + freight & insurance |
| 2. | Cloud or Data Transfer (8523) | Data on electronic storage sent for system updates | Supports IT, software services, and digital R&D |
Most concessions are time -specific and will expire on 31st March, 2026, 2027 or 2029, subject to policy review.
Conditions:
There are specific requirements for claiming every exemption-
- End use certification
- Manufacturer declaration
- Approval from specific governmental authorities
Long-term impact:
- A single Notification will facilitate faceless assessment and reduce chances of ambiguity and litigation.
- A single source for reference will help ease of doing business
- This will enhance the competitiveness of India from investors perspective.
In case you have any query or need any support in customs clearance/GST or need any clarification, you may like to connect with us.
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Abhinarayan Mishra FCA, FCS, LL. B, IP, RV; Partner, KPAM & Associates, Chartered Accountants, SAM Law Associates LLP, New Delhi; +91 9910744992; ca.abhimishra@gmail.com; samlawassociates18@gmail.com
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