Major Changes in Customs Tariff Effective 1st January 2022
Understand the key Changes Customs Tariff changes in India effective from 1st January 2022. Explore revised HS codes, duty hikes, and compliance updates impacting imports and exports.
Find out which important modifications to India customs fees will go into effect on January 1, 2022. Analyze the effects of updated compliance, increased tariffs, and modified HS codes on imports and exports.
A substantial change to the global Harmonized System of Nomenclature (HS-2022) of the World Customs Organization (WCO) was incorporated into India’s Customs Tariff system on January 1, 2022. India’s ongoing Atmanirbhar Bharat efforts to modernize its tariff structure, streamline import-export classification, and boost domestic production include the modifications.
These revisions touch over 350 tariff lines, including those related to electronics, medicines, drones, chemicals, and industrial machinery manufacturing. This blog lists the affected industries, explains the modifications, and lists the steps that importers and exporters need to take. This blog explains how importers and exporters should proceed, breaks out the changes, and lists the industries that will be impacted.
What Triggered the Changes in Customs Tariff ?
The Harmonized System (HS) is updated by the WCO every five years to take into consideration new product releases, changes in trade patterns, and advancements in technology. The eighth major upgrade of the HS system, the 2022 edition (HS-2022), takes into account important worldwide developments such as:
- Dual-use products (military and civic) are prioritized.
- Better tracking of e-waste and novel chemicals
- Creation of specific codes for medical products and UAVs (drones)
As a WCO member, India amended its First Schedule on January 1, 2022, and put these adjustments into effect under the Customs Tariff Act, 1975.
Major Customs Tariff Updates – Jan 2022
1. HS Code Realignment Based on HS-2022
India reclassified several goods and created new HS Codes in line with the HS-2022 framework. Over 350 tariff lines were either added, deleted, or modified. New classification codes were introduced for:
E-waste and scrap materials
Electric vehicle components
Biotechnology-based medicines.
Products with many uses, such drones and surveillance systems
Accurate classification and easier adherence to global trade norms are guaranteed by this realignment.
2. Introduction of New Tariff Lines
The Government introduced new, more granular HS codes for goods that previously fell under broad categories. This includes specific codes for:
E-cigarettes and vaping devices
Antibody-based therapies
Refined gold vs semi-finished gold
Such differentiation enhances transparency in trade data, revenue monitoring, and sectoral policy-making.
3. Customs Duty Hikes on Select Products
To promote domestic industry and reduce dependency on imports, customs duties were increased on multiple goods such as:
Toys and toy parts (raised from 20% to 60%)
Furniture and certain household goods
Mobile phone accessories and chargers (15% duty on some components)
The government’s Make in India initiative is in line with these hikes, which are intended to increase domestic production capacity.
4. Updates to Tariffs on Dual-Use and Strategic Goods
Certain goods with dual-use potential, such as drones, advanced electronics, and chemicals, have been brought under stricter classification codes. This allows better control over sensitive imports and aligns with national security objectives.
5. Impact on Export-Import Documentation & Compliance
The revised tariff structure requires importers and exporters to update all classification documents used in:
Bills of entry
Shipping bills
Advance Authorisation/EPCG applications
RoDTEP and RoSCTL claims
ERP systems and compliance software
If HS codes are not updated, incentives may be denied, clearances may be delayed, or reassessments may occur.
Important Takeaways: Statistics & Facts
| Insight | Value |
| Number of HS code changes adopted by India | 350+ |
| New tariff lines introduced | 100+ |
| Sectors impacted | Electronics, Pharma, Toys, Chemicals, UAVs |
| Common duty increase | 10% to 15% or 20% to 60% |
| WCO’s HS revision cycle | Every 5 years |
What Should Businesses Do?
Reclassify Goods
Revisit all import-export SKUs and re-map them to the correct HS code as per 2022 norms.
Update Internal Systems
Ensure ERP, GST returns, customs documentation software, and product master data reflect new HS codes and duty rates.
Revise Incentive Scheme Applications
Businesses have to reconsider their eligibility after a change because many export incentives (such as RoDTEP/MEIS) are connected to HS codes.
Consult Customs Experts
Shipment delays and severe penalties may result from misclassification.. Professional customs consultants can help in proper mapping and compliance. If you are looking for financial consulting company to help you in this then Cretum Advisory is one of the best options to go with.
FAQs regarding the Customs Tariff Change Effective January 1, 2022
What caused the January 1, 2022, change in customs fees?
HS-2022 and India’s tariff system should be integrated while handling new product categories and legal restrictions..
How many changes were made to the HS Code?
More than 350 modifications were made to India’s customs tariff, including more than 100 new tariff lines.
Which industry have been the most affected?
There are major effects on the electronics, chemical, toy, drone, pharmaceutical, and renewable energy industries..
Describe an HS Code and explain its significance.
A standardized designation for categorizing traded commodities, the HS designation is essential for customs duty, compliance, and incentive purposes.
Did the rates for customs duties also change?
Indeed, in order to support domestic manufacture, levies were raised on goods including electronics, toys, and furniture.
What should businesses do now?
They must update HS codes, revise ERP systems, and review incentive eligibility.