Overwhelmed by the 100+ new exemptions under the Project Import Scheme from Budget 2025?
At multimodal.biz, we offer paid end-to-end Project Import registration and duty exemption claiming services — starting at just ₹45,000 per project — ensuring you avail 100% benefits without audits or rejections.
This comprehensive 2025 guide breaks down the latest exemptions, eligibility, and how to claim them seamlessly.
What is the Project Import Scheme and Why It Matters in 2025?
The Project Import Scheme (PIS), governed by the Project Imports Regulations, 1986 (Notification No. 230/86-Cus), allows importers to bring in capital goods, spares, and accessories for specific projects at a concessional 5% Basic Customs Duty (BCD) under Tariff Heading 9801. In Budget 2025, the government introduced over 100 new exemptions, expanding coverage to critical sectors like infrastructure, renewables, and manufacturing, saving importers up to 30% on duties.
These exemptions, effective from February 2, 2025 (via Notification No. 04/2025-Customs), target rationalized tariff goods and project-specific imports, aligning with India's $5 trillion economy goal. Eligible projects include power plants, roads, ports, and EPCG-linked setups. Without proper registration, you risk paying full 20–40% duties—our paid service handles registration with sponsoring authorities like MoCI or state governments in 45 days.
Key Highlights of the 100+ New Exemptions in Budget 2025
Budget 2025 expanded PIS exemptions to over 100 items, focusing on Make in India priorities. Here's a curated list of major categories (full annexure in Notification 04/2025):
| Category | New Exempted Items (Examples) | Duty Benefit | Eligible Projects |
|---|---|---|---|
| Infrastructure & Power | Transformers, solar panels, wind turbine components (50+ items) | 5% BCD (from 15%) | Mega power projects, renewable energy setups |
| Manufacturing Capital Goods | CNC machines, looms for technical textiles, EV battery assembly lines (25+ items) | Nil IGST on spares | EPCG-linked factories, SEZ expansions |
| Electronics & EVs | Open cells for LED/LCD, lithium-ion battery scrap, cobalt powder (15 items) | Full BCD exemption | Electronics hubs, EV manufacturing units |
| Metals & Minerals | Waste/scrap of tin, tungsten, zinc, cobalt (10 items) | Zero duty | Recycling projects, mineral processing plants |
| Defence & Maritime | Shipbuilding materials, drone batteries, missile parts (18 items) | 10-year exemption extension | Naval projects, MRO facilities |
| Others | Marble slabs, PVC flex films, bicycles, electronic toy parts, electricity meters (20+ items) | Reduced to 20% or nil | Construction, consumer goods projects |
These 100+ additions (detailed in Table II of Notification 45/2025, consolidating 31 prior notifications) cover HS codes from Chapters 84–98, with full BCD/IGST relief for 70% of items. Total potential savings: ₹10–50 crore per large project.
Step-by-Step Guide to Avail Project Import Exemptions in 2025
- Confirm Eligibility: Projects must be approved by sponsoring authorities (e.g., MoCI for power, NHAI for roads). Minimum value: ₹1 crore.
- Register the Contract: File application on ICEGATE with contract copy, sponsor approval, and project details (Form PI-1).
- Classify Under 9801: All goods assessed at single 5% BCD; upload exemption proof for nil cases.
- File Bill of Entry: Declare PIS; claim exemptions via Notification 04/2025 or 50/2017-Cus.
- Post-Import Compliance: Submit utilization certificate within 1 year; extend for up to 5 years if needed.
- Claim Refunds/ITC: IGST paid is creditable; no refund under PIS.
Timeline: Registration in 30–45 days; clearance in 24 hours for AEO holders. Common pitfall: Mismatched HS codes—leading to 200% penalties.
Common Challenges with New PIS Exemptions & How to Overcome Them
| Challenge | Impact | multimodal.biz Paid Solution |
|---|---|---|
| Identifying 100+ new items | Missed savings of ₹5–20 lakh | Free exemption scanner tool + expert audit |
| Sponsor approval delays | Project stalled 2–3 months | Liaison with MoCI/NHAI (95% success rate) |
| HS code classification errors | Full duty + interest | In-house tariff experts (12,000+ codes database) |
| Utilization certificate filing | License revocation | Automated tracking + submission service |
| SEZ/EOU integration issues | Double taxation | PIS-SEZ bridging (zero duty for authorized ops) |
68% of applicants face rejections due to incomplete docs—our service guarantees 100% compliance.
How Multimodal.biz Provides Paid Project Import Assistance
For ₹45,000+ (project-based), we handle everything:
- Eligibility & Sponsor Coordination: Gap analysis + approval in 30 days.
- Registration & Exemption Claim: ICEGATE filing + 100+ new items mapping.
- Duty Calculation & Clearance: Use our 2025 calculator for precise 5%/nil rates.
- Post-Import Support: Utilization certs + extensions (up to 5 years).
- AEO/PIS Combo: Bundle for T3 status + green channel clearance.
Money-back if exemptions not availed. Ideal for EPC contractors in power/infra.
Benefits of Leveraging 2025 PIS Exemptions for Importers
- Cost Savings: 20–40% duty reduction = ₹2–10 crore/project.
- Faster Execution: Single-window clearance under 9801.
- Cash Flow Boost: Defer IGST; claim ITC seamlessly.
- Scalability: Covers expansions in renewables, EVs, defence.
With extensions till 2027 for power/infra (Notification 40/2025), now's the time to act.
Frequently Asked Questions – Project Import Scheme Exemptions 2025
Who sponsors PIS approval?
MoCI for general; sector-specific like MNRE for renewables.
Are spares included in the 100+ exemptions?
Yes—up to 10% of contract value at 5% BCD.
Can SEZ units avail PIS?
Yes—with full duty/cess exemption for authorized ops.
What's the deadline for claiming Budget 2025 exemptions?
Ongoing—apply via BoE from Feb 2, 2025.
Unlock 100+ New PIS Exemptions – Partner with Experts Today
Don't miss ₹ crores in savings from Budget 2025's Project Import expansions. At multimodal.biz, our paid service ensures zero errors and maximum benefits.
Get free PIS eligibility check – response in 4 hours.