Review of Customs duty Exemptions Union Budget 2025-26 (Full) + Finance Bill, 2025 - Finance Bill

Union Budget 2025-26 (Full) + Finance Bill, 2025 VII. Review of Customs duty Exemptions A. Review of conditional exemption rates of BCD prescribed in notification No. 50/2017- Customs dated 30.6.2017: A comprehensive review has been undertaken in respect of 25 conditional exemptions/concessional rate entries in Notification No. 50/2017-Customs dated 30th June, 2017 whose validity is expiring by 31.3.2025. After review, 24 entries are being continued for varying periods with modification in few entries and 1 entry is being lapsed. (1) The details of exemptions/concessional rates being extended with or without modifications: S.No Description Entry No End date 1 Ships and vessel for breaking up S. No. 555A 31.3.2035 2 Raw materials, components, consumables or parts, for use in the manufacture of ships/vessels S. No. 559 31.3.2035 3 Bulk drugs for manufacture of drugs or medicines [A separate entry is being created for Drugs, medicines, diagnostic kits specified in List 3 with modifications in the list] S. No. 166 31.3.2029 4 Bulk drugs used in the manufacture of polio vaccine and Monocomponent insulins S. No. 166A 31.3.2029 5 Bulk drugs used in the manufacture of life saving drugs or medicines [A separate entry is being created for Drugs, medicines, diagnostic kits specified in List 4 with modifications in the list] S. No. 167 31.3.2029 6 Drugs, Medicines or Food for Special Medical Purposes (FSMP) used for treatment of rare disease S. No. 167A S. No. 607B 31.3.2029 7 Good specified in List 36 imported by testing agencies specified in List 37, for the purpose of testing and/or certification S. No. 532A 31.3.2029 8 Crude Glycerin for use in manufacture of Epichlorohydrin S. No. 81A 31.3.2027 9 Denatured ethyl alcohol for use in manufacture of industrial chemicals S. No. 104B 31.3.2027 10 Fish meal for use in manufacture of aquatic feed S. No. 104C 31.3.2027 11 Goods for the manufacture of telecommunication grade optical fibres or optical fibre cables S. No. 168, S. No. 341, S. No. 341A 31.3.2027 12 Textile machinery (with addition of two new machinery) S. No. 460 S. No. 460A S. No. 460B S. No. 460C S. No. 460D 31.3.2027 13 Parts and components for use in manufacturing of textile machineries S. No. 460E 31.3.2027 14 Goods for use in the manufacture of Open cell of LCD and LED TV panel S. No. 515B 31.3.2027 15 Seeds for use in manufacturing of rough Lab- Grown Diamonds [IGCR condition removed] S. No. 345B 31.3.2026 16 Parts of wind operated electricity generators, for the manufacture or the maintenance of wind operated electricity generators [The entry has also been modified] S. No. 405 31.3.2026 17 Permanent magnets for manufacture of PM synchronous generators above 500KW for use in wind operated electricity generators S. No. 406 31.3.2026 Note: Description of entries is indicative. Notification may be referred to for complete description. (2) The following entry is being allowed to lapse with effect from 01.04.2025: S. No. S. No. of 50/2017- Customs Description 1. 489AA Heat Coil for use in the manufacture of Electric Kitchen Chimneys falling under tariff item 84146000 (3) Other Changes in notification No. 50/2017 -Customs dated 30.6.2017 Certain entries are being modified as under: S. No. S. No. of 50/17-Cus Brief Description 1. 257A 9 new groups of items such as sea shell, adhesive etc are being added to the list of duty free items for use in manufacture of handicrafts for export. The time period for export of the handicraft items is also being increased from 6 months to 1 year, further extended by another three months. 2. 539 BCD exemption is being extended to imports of ground installations for satellites and payloads and its spares and consumables of such installations. 3. 539A BCD exemption is being provided on goods for use in the building of launch vehicles and launching of satellites Note: Description of entries is indicative. Notification may be referred to for complete description. B. Amendment of Notifications Nos. 16/2017-Customs dated 20.04.2017 and 153/94-Customs dated 13.07.1994 Notification No. Brief Description 16/2017-customs dated 20.04.2017 The notification exempts specified drugs and medicines from the whole of the duty of customs leviable thereon subject to their being supplied free to cost to patients under Patient Assistance Programme (PAP) run by the pharmaceutical companies. 37 new drugs and 13 patient assistance programmes are being added to the list 153/94-customs dated 13.07.1994 Currently, articles of foreign origin can be imported into India for maintenance, repair and overhauling subject to their export within six months extendable to 1 year. The duration for export in the case of railway goods imported for such purpose has been increased from 6 months to 1 year further extendable by 1 year Note: Description of entries is indicative. Notification may be referred to for complete description. Full Text : Union Budget 2025-26 (Full) + Finance Bill, 2025