Amending List 34A and 34B

## Policy Analysis Report: Amendment to Customs Notification No. 50/2017-Customs **1. Executive Summary:** This report analyzes an amendment to the Government of India's Customs Notification No. 50/2017-Customs, published on April 28, 2025. The amendment, identified as No. 24/2025-Customs, revises the Annexure to the Table within the original notification, specifically substituting Lists 34A and 34B. These lists appear to pertain to specific financial institutions related to customs regulations, possibly concerning exemptions or preferential treatment. The key finding is the alteration of the lists of approved banks, indicating a change in which financial institutions are recognized for particular customs-related transactions or benefits. **2. Introduction:** This report aims to provide a comprehensive overview of the amendment to Customs Notification No. 50/2017-Customs, as detailed in the provided government policy text dated April 28, 2025. The analysis focuses solely on the information presented within the provided document to inform affected industries about the changes and their potential implications. **3. Policy Overview:** * **Original Policy:** Customs Notification No. 50/2017-Customs, dated June 30, 2017. * **Core Objective(s):** Based on the text, the original notification likely pertains to granting exemptions or establishing specific customs procedures based on Section 25 of the Customs Act, 1962 and Section 3 of the Customs Tariff Act, 1975. The stated objective is acting in the public interest. **4. Background and Rationale:** This is an amendment. The specific reason for this amendment is the need to update the lists of financial institutions (Lists 34A and 34B) recognized under the provisions of Customs Notification No. 50/2017-Customs. The amendment suggests that the initially approved list of banks required revision, possibly due to regulatory changes, performance evaluations, or other relevant factors impacting their eligibility. **5. Key Provisions / Changes:** This amendment *specifically* changes: * **Part of Original Policy:** The Annexure to the Table within Customs Notification No. 50/2017-Customs. * **Specific Elements Changed:** Lists 34A and 34B and their corresponding entries are being replaced. * **New Rule/Provision:** List 34A now includes the following banks: Axis Bank Limited, Bank of India, Federal Bank Limited, HDFC Bank Limited, Industrial and Commercial Bank of China Limited, ICICI Bank Limited, IndusInd Bank Limited, Kotak Mahindra Bank Limited, Karur Vysya Bank Limited, Punjab National Bank, RBL Bank Limited, State Bank of India, and Yes Bank Limited. List 34B now includes: Indian Overseas Bank and Union Bank of India. * **Difference/Effect of Change:** The amendment alters the list of banks that qualify under S. No. 359A of the Table. The effect is that customs-related benefits or procedures associated with S. No. 359A are now restricted to transactions conducted through the banks listed in the amended Lists 34A and 34B, which goes into effect April 1st, 2025 and is valid until March 31st, 2026. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders include: * **Importers and Exporters:** Businesses involved in international trade, as they are directly affected by customs regulations and any associated exemptions or procedures. * **The Banks Listed in the Amendment:** These financial institutions are directly impacted as the changes affect their ability to handle customs-related transactions and potentially influence their business volume in this area. * **Customs Brokers and Agents:** Intermediaries who facilitate customs clearance processes. * **Government Agencies:** Particularly the Ministry of Finance (Department of Revenue) and customs officials responsible for implementing and enforcing these regulations. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Ministry of Finance (Department of Revenue) is responsible for issuing and overseeing the implementation of the notification. Customs officials will enforce the updated lists. * **Timelines:** The amendment is effective from April 1, 2025, and valid until March 31, 2026. Businesses must comply with the updated bank lists from the effective date. * The implementation aspect of the changes involves customs officials verifying that transactions are conducted through banks listed in the updated Lists 34A and 34B to qualify for any benefits linked to S. No. 359A of the Table. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of these specific changes is to streamline customs procedures by focusing on a revised set of banks. This could lead to: * **Enhanced Efficiency:** By limiting the number of eligible banks, the government might aim to simplify verification processes and reduce administrative burden. * **Increased Control:** Concentrating transactions through specific banks might enable better monitoring and control over customs-related financial flows. * **Potential Disruption:** Businesses that previously used banks no longer on the list may need to establish new banking relationships to continue benefiting from relevant customs provisions, leading to temporary disruptions. * **Market Impact:** The banks newly included in the lists may experience an increase in customs-related business, while those removed may see a decline. **9. Conclusion:** The amendment to Customs Notification No. 50/2017-Customs, effective April 1, 2025, represents a significant update to the list of approved banks for specific customs-related transactions. Businesses involved in international trade and the listed financial institutions should carefully review the changes and adapt their processes accordingly to ensure compliance and minimize potential disruptions. The amendment underscores the government's ongoing effort to refine customs procedures and potentially enhance control over related financial activities.

Key Entities Referenced