Import

U.S. Suspends Reciprocal Tariffs for 90 Days – Temporary Relief for Exporters

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In a significant policy development, the President of the United States has issued a new Executive Order dated April 9, 2025, announcing a 90-day suspension of country-specific reciprocal tariffs for trading partners that have not retaliated against the earlier U.S. Executive Order on tariff alignment.

Key Highlights from the Executive Order:

  1. Temporary Suspension: The ad valorem duties imposed on trading partners listed in Annex I of Executive Order 14257 are suspended for 90 days, excluding the People’s Republic of China (PRC).

  2. Reduced Duty Rate: During this suspension period, all goods entered for consumption or removed from warehouse from the listed countries of Annex I between April 10, 2025 (12:01 AM EDT) and July 9, 2025 (12:01 AM EDT) will attract an additional ad valorem duty of 10%.

  3. China-Specific Revisions: The exemptions do not apply to PRC and certain upward modifications have been made specifically for tariff rates applicable to the PRC, which remain in effect.

📌 Exporters are advised to review the complete Executive Order for full details:
Read the Executive Order

U.S. Tariff Action – India Assigned 26%

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In a landmark executive action, the U.S. President has signed an order adjusting import tariffs based on reciprocal trade imbalances and national interest objectives. India is one of the countries directly affected, with its reciprocal tariff rate adjusted to 26%, up from previous preferential or MFN levels.

This strategic trade move is aimed at rebalancing trade deficits and incentivizing fair market access for U.S. exporters. The revised tariff framework is backed by an extensive list of over 3,000 product lines under HTS codes across sectors like chemicals, minerals, fuels, and rare metals.

Top 10 Takeaways for Indian Exporters:

  1. India’s new tariff rate for exports to the U.S. is set at 26%

  2. The action is part of a reciprocal tariff realignment with 70+ countries (Annex-I), many of whom face similar hikes. No exemptions for developing countries – Vietnam, Sri Lanka, and Bangladesh are all included.

  3. ‘Reciprocal Tariff Adjustment’ is not uniform – countries like Lesotho face 50% while others like Nigeria see 14%.

  4. The implementation of the order will be on April 05, 2025 – 12:01am Eastern Daylight Time with an initial levy of 10% and the full rate as per the Order (India – 26%) from April 09, 2025 – 12:01am Eastern Daylight Time.  Goods already loaded onto a vessel at the port of loading and in transit on the final mode before the specified timing but land after the date shall not be subject to these new ad valorem rates of duties.

  5. Annex II lists product that are excluded from the ad valorem tariffs under this order. Excluded products include copper, aluminum, bauxite, fluorspar, graphite, APIs, and many chemicals.Exporters must validate their product’s HTSUS classification against Annex II to assess the exemption.

  6. These goods may face separate or alternative duty treatment, yet to be announced.

  7. The rates of duty established by this order are in addition to any other duties, fees, taxes, exactions or charges as applicable to such imported articles, except as provided in the exemptions of the order.

  8. In order to establish the duty rates described in the order, the HTSUS is also modified as set forth in the Annexes to this order. The modifications will take effect on the dates as mentioned in the order. Exporters can refer to https://hts.usitc.gov/ for further details.

  9. Accurate classification of export products under HTS codes is now more critical than ever.

  10. This change could significantly impact pricing, margins, and competitiveness in the U.S. market

This tariff realignment by the U.S. President marks a paradigm shift in trade policy, introducing stricter, country-specific import duties aimed at promoting reciprocal trade. Indian exporters must act now – assess your product lines, understand revised tariff rates, map HTS codes, track regulatory updates, and prepare contingency plans for what may come next.
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* The Annex I has been updated where rate against India has been edited to 26%
(https://www.whitehouse.gov/wp-content/uploads/2025/04/Annex-I.pdf) 

Disclaimer:
This summary reflects the Presidential Order and details as currently issued. Future U.S. trade actions or clarifications may alter its implementation. Exporters should refer official sources or trade advisors before making commercial decisions.

Budget 2025: Key Export-Related Announcements

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Driving Export Growth through Policy Reforms

The Union Budget 2025 presents a strategic vision for boosting exports, with a particular emphasis on MSMEs, infrastructure, digital trade facilitation, and sector-specific incentives. Recognizing that MSMEs contribute 45% of total exports, the government has introduced measures to ease credit access, streamline trade documentation, and enhance sectoral competitiveness. Below are the key highlights from the latest budget that will impact Indian exporters:

Key Highlights

  1. Strengthening MSME Exports
    • Investment and turnover limits for MSME classification have been enhanced to 2.5x and 2x, respectively.
    • Well-performing exporter MSMEs will have access to term loans up to ₹20 crore to boost their business expansion.
  2. Sector-Specific Export Incentives
    • Footwear & Leather Sectors: Expansion of the Focus Product Scheme to facilitate exports worth ₹1.1 lakh crore.
    • Handicrafts Sector: The export period is extended from 6 months to 1 year, with an additional 3-month extension if required. Also, 9 new items are added to the duty-free input list.
    • Crust Leather: 20% export duty exemption to support small-scale tanners and exporters.
  3. Export Promotion & Ease of Doing Business
    • Establishment of an Export Promotion Mission, jointly led by the Ministries of Commerce, MSME, and Finance, focusing on:
      • Easy access to export credit
      • Cross-border factoring support
      • Addressing non-tariff barriers in overseas markets
    • Launch of ‘BharatTradeNet’ (BTN), a unified digital platform for trade documentation and financing solutions.
    • Development of a national framework to encourage Global Capability Centres (GCCs) in Tier-2 cities to boost trade infrastructure.
  4. Infrastructure & Logistics Support
    • Enhancing air cargo infrastructure and warehousing to support the export of high-value perishable horticulture produce.
  5. Regulatory & Taxation Reforms
    • Introduction of a voluntary declaration system allowing importers/exporters to declare material facts and pay duties with interest but without penalty.
    • Amendment in Schedule III (w.e.f. 01.07.2017): Goods warehoused in Special Economic Zones (SEZs) or Free Trade Warehousing Zones (FTWZs), when supplied before clearance for exports or to the Domestic Tariff Area (DTA), will be treated neither as supply of goods nor as supply of services.
    • Removal of IGCR condition for customs duty exemption on import of seeds for rough lab-grown diamond manufacturing.

The Budget 2025 reaffirms the government’s commitment to strengthening exports by providing financial support to MSMEs, simplifying trade processes, and enhancing infrastructure. The establishment of BharatTradeNet (BTN) and the Export Promotion Mission are expected to streamline trade, while sector-specific benefits, will provide direct advantages to exporters. With these measures, India is set to bolster its position as a global trade leader, ensuring long-term export growth, resilience, and competitiveness.

Customs Enables Online Voluntary Payment via ICEGATE

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In a move to enhance ease of doing business and further digitize its services, Customs has introduced a new functionality to replace the existing manual TR-6 Payment Challan process at various Customs stations.

New Voluntary Payment Facility on ICEGATE

  • The new Voluntary Payment facility is accessible post-login on the ICEGATE website (www.icegate.gov.in).
  • This feature enables payments for imports/exports cleared in the past and other issues, with a detailed purpose Annexure provided for clarity.
  • Proof of payment can be submitted to the respective field formations for necessary actions.

Payment Modes Supported

  • Nine Banks listed under the Internet Banking mode through the Authorized Bank, NEFT/RTGS, and Payment Aggregator Mode are accepted for this facility.
  • Electronic Cash Ledger can also be used for voluntary payments.

Key Transition Details

  • This online functionality aims to replace the existing manual TR-6 Challan process.
  • Starting 1st January 2025, the manual TR-6 Challan will no longer be accepted unless specifically approved by the concerned Principal Commissioner/Commissioner of Customs with valid reasons.

Additional Resources

This initiative reinforces Customs’ commitment to enhancing transparency, efficiency, and ease in payment processes.

DGFT Expands Exemption List for Quality Control Orders (QCOs) under Advance Authorization, EOU, and SEZ

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In line with recent updates to Quality Control Orders (QCOs) from various ministries and departments, the Directorate General of Foreign Trade (DGFT) has issued Public Notice No. 31/2024-25 dated 05th November 2024.

This notice amends Appendix-2Y, adding the Ministry of Heavy Industries to the list of ministries/departments exempted from mandatory QCO requirements for exports under Advance Authorization holders, EOUs, and SEZs.

With this addition, the Ministry of Heavy Industries is now included at Sr. No. 6 in the list, joining the Ministry of Steel, DPIIT, Ministry of Textiles, Ministry of Mines, and the Department of Chemicals & Petrochemicals (Sr. Nos. 1 to 5).

Exporters dealing with QCO requirements issued by the Ministry of Heavy Industries can now avail exemptions under this public notice by adhering to the existing guidelines.

For full details, please refer to the official public notice.

Reduction and Ease of Compliances for EPCG Authorisation

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In the aim to reduce the Compliance Burdern and enhance “Ease of doing Business” DGFT, has amended various procedure under Chapter 5 of the FTP for the EPCG Scheme.

The Public Notice No. 15/2024-25 Dated 25.07.2024 applicable from immediate effect will assist and ease lot of procedural challenges for EPCG Licence holders.

The key points of the Public Notice are as below:

1. Amendment to HB Para 5.04 (a) now allows EPC Authorisation holder to submit Installation Certificate within 3 years from date of completion of import instead of 6 months earlier.

2. In case of further delay in submission beyond 3 years, RA may allow extension of period of submission with a composition fee of Rs. 10,000/- per year within the EO Period.

3. The Installation Certificate submission period for Import of Spares under HB Para 5.04(b) has been now deleted.

4. In focus of ease of doing business, the Block Extension composition fees which were 2% of the unfulfilled portion of EO and some late fee has been changed with a fixed fee structure on the basis of Duty Saved Value of EPCG Authorisation ranging from Rs. 5,000 to Rs. 45,000 at max.

5. Similarly, EO Period Extension beyond 6 years from the date of expiry has been now allowed with a fixed fee structure on the basis of the Duty Saved Value instead of the 2% of unfulfilled portion.

6. These new provisions also apply to EPCG Authorisations issued under FTP 2015-2020.

Thus, EPCG Authorisation Holders will now have much more ease in compliances under the scheme and the Block and EO Extensions would be endorsed faster reducing time and compliance efforts.

All EPCG Authorisation holders must refer the details in the Public Notice and take the necessary benefit.

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New SIMS Module 2.0 Launched

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New Platform for Steel Import Monitoring System (SIMS) is been launched.
Trade Notice [TN 10/2024-25 Dt. 25.07.2024] issued by DGFT on 25.07.2024, hereby informs that a New System Steel Import Monitoring Systems (SIMS) 2.0 is launched with immediate effect.

The New SIMS 2.0 is effective immediately. [https://sims.steel.gov.in]

All applications from 25.07.2024 after 2pm will not be made on DGFT (dgft.gov.in) website but from the New SIMS 2.0 portal – https://sims.steel.gov.in

Applications already submitted until this change, will be available for download from the DGFT website until further notice.

A dedicated SIMS 2.0 Helpdesk is also made available via telephone and email

Helpdesk No. 01123213945 / 01123214201
Helpdesk Email: simshelpdesk@mstcindia.in

Importers of the Steel Products who need to register for SIMS must note this new change.

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India and European Free Trade Association signs the Trade and Economic Partnership Agreement (TEPA)

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India had been working on a Trade and Economic Partnership Agreement (TEPA) with EFTA countries comprising Switzerland, Iceland, Norway & Liechtenstein.

On 10th March 2024, the India-European Free Trade Association signed the Trade and Economic Partnership Agreement (TEPA) in a signing ceremony in New Delhi.

Image Source: @Twitter Handle of Shri. Piyush Goyalji

TEPA is a modern and ambitious Trade Agreement. For the first time, India is signing FTA with four developed nations – an important economic bloc in Europe. For the first time in history of FTAs, binding commitment of $100 bn investment and 1 million direct jobs in the next 15 years has been given. The agreement will give a boost to Make in India and provide opportunities to young & talented workforce. The FTA will provide a window to Indian exporters to access large European and global markets.

The agreement has 14 chapters and focus is on market access to goods, rules of origin, trade facilitation, trade remedies, technical barrier to trade etc…

EFTA is an important regional group, with several growing opportunities for enhancing international trade in goods and services. Among EFTA countries, Switzerland is the largest trading partner of India followed by Norway.

The key highlights of the agreement are:

1. For the first ever time in the history of FTAs, a legal commitment is being made about promoting target-oriented investment and creation of jobs.

2. EFTA is offering 92.2% of its tariff lines which covers 99.6% of India’s exports. The EFTA’s
market access offer covers 100% of non-agri products and tariff concession on Processed
Agricultural Products (PAP)

3. India is offering 82.7% of its tariff lines which covers 95.3% of EFTA exports of which more than 80% import is Gold. The effective duty on Gold remains untouched.

4. India has offered 105 sub-sectors to the EFTA and secured commitments in 128 sub-sectors from Switzerland, 114 from Norway, 107 from Liechtenstein, and 110 from Iceland.

5. TEPA has provisions for Mutual Recognition Agreements in Professional Services like nursing, chartered accountants, architects etc.

The Prime Minister has also shared his delight on the agreement and he tweeted:
“Delighted by the signing of the India-EFTA Trade & Economic Partnership Agreement. This landmark pact underlines our commitment to boosting economic progress and create opportunities for our youth. The times ahead will bring more prosperity and mutual growth as we strengthen our bonds with EFTA nations.”

Image Source: Official Twitter handle of PM – Shri. Narendra Modiji

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DGFT enables provision for Import of Inputs without QCOs under AA and EOU

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In a move to assist and enable exporters importing inputs without mandatory compliance under various Quality Control Orders (QCO) under AA or by EOU Units, the DGFT issued notification and added a new para 4.18A and amended para 6.07 (k).

The Notification No. 69/2023 Dated 07.03.2024 can be downloaded from the DGFT Website or link here: https://content.dgft.gov.in/Website/dgftprod/4c0e420c-70dd-488f-8b88-5b9a7347bad2/Noti69%20eng.pdf

The Conditions to be fulfilled for the exemption under AA are:

1. Import without compliance to mandatory QCOs will be subject to Pre-Import Condition

2. Exemption from Mandatory QCOs will be specifically endorsed on AA upon request of the AA holder.

3. Inputs imported with mandatory QCOs will not be transferred to DTA event after regularization of export default.

4. If unutilized, required procedure of destruction and duty payment with interest needs to be followed.

5. Exemption from QCO will be available only for Physical Exports and not for Deemed Exports.

6. Facility of Clubbing is not available for these authorisations.

Also, the Notification amends the para 4.24 of FTP not allowing Import of Inputs without mandatory QCOs under DFIA.

For EOUs, amendment is done to para 6.07 to allow import of inputs without mandatory QCOs subject to conditions and undertakings.

DGFT has also issued Public Notice No. 47/2023 dated 07.03.24 which notified Appendix 2Y which provides list of Ministries/Departments who’s notification on Mandatory QCOs are exempted by the above notification.

Currently 2 Ministry / Departments are notified
1. Ministry of Steel (Mos)
2. Department of Promotion and Industry and Internal Trade (DPITT)

Public Notice can be downloaded from the link here:
https://content.dgft.gov.in/Website/dgftprod/e345325b-70a9-4796-ba24-183fc0bcb8be/PN47%20eng.pdf

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DGFT announces Implementation of Yellow Peas Import Monitoring System (YP-IMS)

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As per the DGFT Notification No. 50/2023 dated 08.12.2023, where Import of Yellow Peas are allowed subject to Compulsory registration under Import Monitoring System.

Now, DGFT has notified the YP-IMS Procedure vide PN 35/2023 Dt. 13.12.2023.

a. The Importer will require to apply for YP-IMS online on DGFT Website.

b. The fees of Rs. 500/- will be required to pay and YP-IMS will issue an Automatic Registration Number.  The Automatic Registration Number will be submitted to Customs authorities at the time of filing for Import clearance.

c. The Importer is required to register the YP-IMS not later than 5 days before the expected date of arrival of Import Consignment.

d. Only 1 Automatic Registration Number is required for any number of Import consignments up to 31st March 2024 Only.

e. Automatic Registration number will be valid for 1 Specific Country of Origin and 1 Port only.

Importers must refer the Public notice from the link below for all the details.
https://content.dgft.gov.in/Website/dgftprod/ec21b921-7d46-46eb-a851-d8ff589bed14/PN%2035%20dt%2013-12-23%20Eng.pdf

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