The Central Board of Indirect Taxes and Customs (CBIC) issued Notification, revising the tariff values for a range of widely traded commodities, including Crude Palm Oil, RBD Palm Oil, Crude Palmolein, Gold, Silver, Brass Scrap, and Areca Nuts.

Introduction

On June 11, 2025, the Central Board of Indirect Taxes and Customs (CBIC) issued Notification, revising the tariff values for a range of widely traded commodities, including Crude Palm Oil, RBD Palm Oil, Crude Palmolein, Gold, Silver, Brass Scrap, and Areca Nuts. These changes took effect from June 12, 2025, impacting all relevant import declarations filed thereafter.

For businesses engaged in imports, this update is not just a routine notification—it carries
real implications for pricing, duty calculations, and regulatory compliance. This blog outlines
the significance of the tariff revisions, key changes, and what importers should do to stay
compliant and competitive.

Why Tariff Value Changes Are Important

Tariff values are reference prices notified by CBIC under Section 14(2) of the Customs Act, 1962. These values are used in place of transaction values when determining the assessable value for customs duty, especially for commodities that are prone to price manipulation, under-invoicing, or high volatility.

For example:

• Edible oils like palm oil, widely consumed in households and food manufacturing, are highly price-sensitive and affect inflation and input costs.
• Precious metals like gold and silver have volatile global prices and large trade volumes. Small changes in duty valuation can result in significant tax liabilities.
• Areca nuts, predominantly imported and consumed in regions like Karnataka and Assam, are often misclassified or under-invoiced, making tariff regulation essential.

Tariff value revisions help the government ensure fair taxation, revenue protection, and market stability while ensuring a level playing field for domestic industries.

Key Updates Under Notification No. 42/2025-CUSTOMS (N.T.)

This notification amends the earlier Notification No. 36/2001-CUSTOMS (N.T.) and updates three specific tables:

1. Edible Oils: Tariff values for Crude Palm Oil, RBD Palm Oil, and Crude Palmolein have been revised in line with international pricing trends to ensure more accurate duty assessment. These commodities are key inputs in packaged foods, hospitality, and FMCG sectors.
2. Precious Metals: New reference values for gold and silver, based on global spot market trends, aim to improve customs valuation accuracy and prevent undervaluation risks in the bullion trade. With India being one of the world’s top gold consumers, duty accuracy is essential for revenue integrity.
3. Areca Nuts: This revision ensures better monitoring of areca nut imports, often susceptible to misdeclaration. It supports domestic growers and maintains transparency at entry points.

Importers must now declare goods using the revised values for entries made from June 12, 2025, onwards.

Implications and Compliance Priorities for Businesses

The impact of tariff value changes is immediate and multidimensional:

Financial Recalibration: Changes in tariff values can significantly affect landed costs and pricing models. Importers must update internal cost projections and duty calculations.

Customs Documentation: All shipping bills and bill of entry documents should reflect the latest tariff values to avoid mismatches, delays, or penalties.

Sector-Specific Adjustments:  

• Edible oil importers must update procurement costs and inform pricing teams to avoid margin erosion.
• Jewellers and bullion traders need to ensure ERP systems and compliance software reflect the updated values to maintain accurate tax filings.
• Areca nut traders, operating on thin margins, should align closely with customs brokers to avoid compliance risks and ensure timely clearance.

Failure to align with notified tariff values may result in audit triggers, fines, or even seizure of goods in serious cases.

Conclusion

The CBIC’s June 2025 tariff value revision is a proactive move to align customs duties with global price movements and domestic market dynamics. Importers of edible oils, bullion, brass scrap, and areca nuts must act swiftly to incorporate these changes into their operations.

Key takeaways:

• Tariff values have been updated for key commodities under CBIC Notification No. 42/2025.
• Accurate declaration is essential for customs duty compliance.
• Timely adaptation minimizes regulatory and financial risk.

Staying informed and responsive to such changes is critical not just for compliance but for
building resilience and efficiency in the import value chain