The Government of India frequently updates its customs duty structure to streamline import processes, support domestic industries, and align tariff regulations with evolving trade requirements. On 18 November 2025, the Ministry of Finance issued Notification No. 45/2025–Customs, which makes significant changes to earlier customs exemption notifications issued across multiple years.
This blog simplifies the lengthy notification into an easy-to-understand, structured explanation so importers, customs brokers (CHAs), manufacturers, and logistics professionals can clearly understand the changes.
Introduction to Notification No. 45/2025–Customs
Notification No. 45/2025–Customs was issued under the authority of Section 25(1) of the Customs Act, 1962, which empowers the government to exempt goods from customs duties in public interest.
This notification does not introduce new exemptions but modifies, substitutes, or omits various conditions, serial numbers, descriptions, and tariff items in earlier notifications issued between 1994 and 2024.
It is primarily aimed at:
- Updating outdated tariff headings
- Aligning exemption entries with the current Customs Tariff Act, 1975
- Rationalizing exemption conditions
- Removing obsolete notifications
- Improving compliance clarity for importers
Since numerous older notifications carried references to outdated chapter headings or serial numbers, Notification 45/2025 cleans them up to match today’s tariff framework.
Why Was This Notification Issued?
The customs tariff undergoes updates regularly—especially with the introduction of new HSN codes and the deletion or merging of old ones. Over time, exemption notifications become misaligned with the tariff schedule.
This notification was necessary to:
✔ Update cross-references: Many earlier notifications referenced tariff items that no longer exist due to restructurings in the Customs Tariff Act.
✔ Ensure legal accuracy: Mistakes or outdated references can create compliance challenges at ports. This notification eliminates ambiguity.
✔ Improve uniformity: With multiple notifications spanning 30+ years, harmonization was crucial.
✔ Reduce disputes: By precisely defining tariff headings, the government aims to reduce classification-related litigation.
✔ Support trade facilitation: An updated, cleaner exemption list improves clarity for importers and customs officers.
Overview of Notifications Affected
Notification No. 45/2025–Customs modifies a long list of earlier notifications, including major ones such as:
- 30/2017 – Customs
- 31/2017 – Customs
- 50/2017 – Customs
- 32/2021 – Customs
- 31/2022 – Customs
- 45/2023 – Customs
- Old exemptions from 1994, 1996, 2009, 2011, 2016
These notifications originally covered exemptions related to:
- Project imports
- Medical equipment
- Renewable energy projects
- Scientific equipment
- Defense imports
- Agriculture machinery
- Inputs for manufacturing
- Electronics and telecom equipment
- Supply to SEZ/EoU
- Special economic programs
Notification 45/2025 updates specific serial numbers and exemption conditions within these.
Key Highlights of the Amendments
1. Updated Tariff Item References
Many items where the tariff heading structure has changed were updated.
Example:
- Old heading: “8703.24.90”
- Updated to new format under the revised HSN structure.
This helps ensure importers classify goods correctly when claiming concessions.
2. Omissions of Obsolete Entries
Several serial numbers or exemption entries that had become irrelevant due to:
- discontinued schemes
- replaced incentives
- obsolete machinery
- changes in industrial priorities
…have been removed.
This reduces confusion and compliance burden.
3. Substitutions to Match the Current Tariff
Certain descriptions of goods were substituted for clearer language.
For example:
- Broad product names replaced with more specific descriptions
- Ambiguous terms replaced with internationally recognized terminology
- Conditions rewritten for clarity
This ensures exemptions are applied uniformly.
4. Alignment With the Finance Act Changes
Since tariff rates were updated in recent budgets, older exemption entries needed alignment.
Notification 45/2025 ensures:
- exemptions reflect current rates
- references match updated sub-headings
- redundant exemptions are merged or removed
5. Impact on Project Import and Specific Industry Schemes
Notifications related to:
- EPCG
- EoU
- Mega Power Projects
- Nuclear Power
- Renewable Energy
- Petroleum and Petrochemical projects
…now carry updated tariff descriptions.
Businesses availing project-based exemptions must review these changes carefully.
Detailed Section-Wise Changes (Simplified)
Notification 45/2025 contains multiple sections, each amending one or more earlier notifications. Here’s a simplified breakdown:
1. Amendments to Notification No. 30/2017 – Customs
This notification contains some of India’s most widely used exemptions.
Updates include:
- Change in tariff headings for machinery
- Updated descriptions for parts and components
- Deletion of obsolete entries
2. Amendments to Notification No. 45/2017 – Customs
One of the core notifications related to industrial inputs.
Changes include:
- Revised conditions for availing benefit
- Substitution of serial numbers
- Clearer description of goods
3. Changes Affecting Renewable Energy Imports
Earlier exemptions for:
- solar power projects
- wind energy equipment
- energy storage
…now carry updated HSN references.
This ensures all items match the tariff schedule introduced after 2022.
4. Amendments to Medical and Scientific Equipment Exemptions
Includes updates to:
- diagnostic instruments
- laboratory equipment
- medical consumables
This was important because HSN restructuring affected many medically relevant sub-headings.
5. Updates to Defense-Related Imports
Some exemptions used by the Ministry of Defence and DRDO have been aligned with new product categorizations.
6. Removal of Old Notifications Dating Back to the 1990s
Notifications from 1994, 1996, 2002, 2009, etc., were amended to remove redundant provisions.
Many of these pertained to:
- outdated machinery
- discontinued industrial schemes
- old EPCG structures
What Importers Should Do Now
Since the notification affects multiple industries, importers and CHAs should take the following steps:
1. Recheck Tariff Classification
Ensure your product classification matches the newly updated HSN codes.
2. Update Internal Compliance Databases
If your company uses ERP systems like SAP, Oracle, or Tally, update:
- tariff items
- exemption conditions
- notification references
3. Re-evaluate Eligibility for Exemptions
Some previously available exemptions may now be:
- omitted
- narrowed
- modified
Review all affected entries.
4. Train Your Documentation Teams
Your import documentation team must be aware of:
- new serial numbers
- new correction notes
- updated tariff references
Incorrect claims could lead to:
- duty demands
- audits
- penalties under Section 111/112
5. Consult Your Customs Broker or Consultant
Since this notification refers to many earlier notifications, professional advice is highly recommended for:
- EPCG imports
- project imports
- goods imported for manufacturing
- specialized machinery
Who Will Be Most Impacted?
This notification heavily impacts industries such as:
- Manufacturing
- Infrastructure development
- Oil & Gas
- Renewable energy
- Pharma & Chemicals
- Food processing
- Automobile & EV sector
- Heavy machinery imports
- Medical equipment importers
- Trading companies
Businesses regularly claiming exemptions must review the changes immediately.
Benefits of Notification 45/2025 for Trade
Despite the complexity, the notification offers several benefits:
- Improved clarity for exemptions
- Reduction in misclassification errors
- Lower disputes between importers & customs
- Clear alignment with global HSN standards
- Simpler compliance for CHAs and logistics teams
Overall, this is a rationalization exercise intended to clean up the Indian customs exemption framework.
Conclusion
Notification No. 45/2025–Customs is one of the most comprehensive alignment notifications issued this year. It updates, substitutes, and standardizes exemption entries across dozens of older notifications—some dating back 30 years.
For importers, customs brokers, and compliance teams, it is essential to:
- review the updated tariff headings
- verify your exemption eligibility
- update your internal systems
- avoid referencing outdated notifications
Staying compliant with the latest customs updates ensures smoother clearances, fewer queries, and reduced compliance risk.
