Can the Government Change Customs Duty Overnight? What the Customs Tariff Act Allows
Importers and exporters sometimes see a rate change with little warning. The Act explains which powers allow this, and what limits apply.
- Section 8A lets the Government increase an import duty at once where circumstances need immediate action.
- Section 8 does the same for export duties.
- Section 5 allows a lower rate for goods of a country with which India has a trade agreement, if you claim it at import with the evidence the rules ask for.
- Can import duty be raised immediately?
- And export duty?
- What is a protective duty?
- Can the Government amend the tariff schedule itself?
- How do trade agreements change the rate?
- Who decides whether a trade agreement applies to a country?
- So how do I protect myself from a sudden change?
- Where do I see today's position?
- Can you tell me how a rule change affects my shipment?
Can import duty be raised immediately?
Yes, in emergencies. Under Section 8A, if the Government is satisfied that the duty on an article in the First Schedule should be increased, and circumstances need immediate action, it may increase it by notification in the Official Gazette. Section 7(3) then requires it to be laid before Parliament, with approval sought by a resolution moved within fifteen days. Parliament can modify it or end it, without affecting what was done meanwhile. Section 7(4) lets the Government rescind it at any time.
And export duty?
Section 8 gives the same kind of power for the Second Schedule. The Government may increase an export duty, or levy one, by notification where immediate action is needed.
What is a protective duty?
Under Section 6, if the Tariff Commission recommends it, and the Government is satisfied that immediate action is needed to protect an industry established in India, it may impose a duty on the goods. The amount cannot exceed what the recommendation proposes. The Government must then bring a Bill in Parliament to continue the duty.
Can the Government amend the tariff schedule itself?
Section 11A allows it to amend the First Schedule in the public interest, but not the rates of duty. Every such notification is laid before Parliament for thirty days, and Parliament can modify or annul it.
How do trade agreements change the rate?
Under Section 5, where an agreement means a lower rate of duty is to be charged on goods of a foreign country, the Government can make rules to decide when the goods are the produce or manufacture of that country. The importer must claim the lower rate at the time of import, with the evidence the rules require. That is why the Certificate of Origin matters. Read our post on the digital Certificate of Origin.
Who decides whether a trade agreement applies to a country?
Section 5(2) says if a question arises whether a trade agreement applies to a country, or has ceased to apply, the Central Government decides it, and that decision is final.
So how do I protect myself from a sudden change?
- Read the latest notifications on cbic.gov.in before you finalise the price.
- Put a clause in your contract about duty changes, and who bears them.
- Ask us before a large order. We check the position for your product.
Where do I see today's position?
On cbic.gov.in for customs notifications, and on dgft.gov.in for policy. Our Trade Updates page tracks the changes that matter, and our post on Budget 2026-27 lists the latest rate changes.
Can you tell me how a rule change affects my shipment?
Yes. Send us the product and the dates. We will tell you the rate that applies and what to do.
- Customs Tariff Act, 1975 (Government of India text, last updated 8 May 2023). Check cbic.gov.in for later amendments
- Indian Customs (CBIC): current tariff and notifications
Every fact here is taken from Government of India sources, as we read them on 12 November 2026. Please confirm against the original notification for your own shipment before you act. Rules change, and the right answer depends on your product, origin and destination.
Not sure how this applies to your shipment? Send us the product and the route. A call or a message is all it takes, and we are with you at every step of the way, whether you are importing or exporting.
Office (backup): +91 93733 11838
Multimodal Logistic Systems Pvt. Ltd., Pune, India. Written by Shankar Jha. We are consultants, not a law firm. This post is general information.