Full BCD Exemption Granted Under S. No. 515C of Notification 50/2017-Customs

Issued via Notification No. 23/2025-Customs | Dated: 4th April 2025

🟨 Key Highlights

The Ministry of Finance, Government of India, has issued Notification No. 23/2025-Customs amending Notification No. 50/2017-Customs, specifically targeting Serial Number 515C in the Table of exemptions.

The change pertains to Column (6), where the Basic Customs Duty (BCD) rate “9” has been substituted with a dash “–”, which effectively indicates a complete exemption from BCD for the said item.

📘 Legal Framework Behind the Amendment

• Section 25 of the Customs Act, 1962: Empowers the Central Government to exempt goods (partially or wholly) from customs duties in the public interest.

• Section 3(12) of the Customs Tariff Act, 1975: Facilitates the levy and collection of Integrated Goods and Services Tax (IGST) and Compensation Cess on imported goods.

• Notification 50/2017-Customs: A consolidated master notification that grants concessional or full exemptions from customs duties for a wide range of imports, based on certain conditions and entries listed in the Table.

🔍 Detailed Analysis of the Amendment

🧾 Original Position:

• S. No. 515C in Notification 50/2017 carried a BCD rate of “9” in Column (6).

• Column (6) signifies the Basic Customs Duty applicable to the listed item.

✅ Post-Amendment Scenario:

• The figure “9” is replaced with “–”, which means the item now attracts zero BCD.

• Other duties like IGST or Compensation Cess may still apply, unless separately exempted.

✅ Practical Impact of the Amendment

🟢 Before the Amendment:

Assume S. No. 515C pertains to an industrial item such as solar inverter parts or a medical device.

Description	BCD	IGST	Total Tax
Inverter Parts	9%	18%	~28%

🔴 After the Amendment (Now):

Description	BCD	IGST	Total Tax
Inverter Parts	0%	18%	18%

➡ This leads to a lower landed cost, making it cheaper for importers and industries that use such components.

🔧 Example Use Case

If the exempted item is part of renewable energy infrastructure, this amendment helps:

• Reduce the cost of solar power equipment.

• Encourage green energy adoption.

• Promote Make in India by cutting input costs for domestic assemblers.

🧮 Beneficiaries of this Amendment

• ✅ Importers of the exempted item.

• ✅ Manufacturing sectors using the item as raw material or component.

• ✅ Healthcare, infrastructure, and energy sectors, depending on the item.

• ✅ Consumers, if the cost benefit is passed on.

📢 Policy Message Conveyed by This Notification

The Central Government aims to boost industrial and public interest sectors by easing import duties, thereby:

• Supporting economic activity,

• Reducing dependency on high-cost imports,

• And promoting cost-efficiency in critical sectors.

📌 Important Caveat

While the amendment provides a clear fiscal benefit, to fully assess its impact, one must refer to the exact description of goods listed under S. No. 515C in the updated Notification No. 50/2017-Customs (as amended).

📎 Conclusion

Notification No. 23/2025-Customs is a step toward reducing import costs for select goods in the public interest. Stakeholders should examine whether their imported items fall under S. No. 515C to benefit from this exemption immediately.