Government to Simplify Customs Duty Structure in Six Months

The government plans to reduce customs duty rates from about a dozen to five, aiming to alleviate classification disputes and simplify trade processes. Revenue Secretary Sanjay Malhotra and CBIC Chairman Sanjay Kumar Agarwal outlined the strategy during interviews, targeting the implementation for the FY25 budget.

In a major move, the government aims to streamline customs duty rates, reducing them from about a dozen to five, according to Revenue Secretary Sanjay Malhotra.

The initiative aims to ease trade, minimize classification disputes, and is expected to be implemented by the FY25 budget. Finance Minister Nirmala Sitharaman announced the comprehensive review as part of her Budget speech.

CBIC Chairman Sanjay Kumar Agarwal confirmed the project, noting the completion within six months, focusing on supporting domestic manufacturing and correcting duty inversions.