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2026.03.26
India's import tariffs are one of the most complex tariff systems in the world, with multiple taxes layered on top of one another. When exporting food from Japan to India, accurately understanding this complex tax structure and performing the appropriate cost calculations form the foundation of your business plan.
Basic Customs Duty is charged at rates set for each HSN code (Harmonized System of Nomenclature). For food, rates ranging widely from 0% to 150% apply depending on the item. The HSN code is an eight-digit classification code, made up of the internationally standardized six digits plus two digits unique to India. Accurately identifying the HSN code of the food being imported is the single most important step in calculating the tariff amount.
10% of the Basic Customs Duty amount is added on as the Social Welfare Surcharge. For example, for food with a 30% basic duty, SWS comes to 3% of the CIF price (10% of 30%). The 2025-26 budget proposes exempting 82 tariff items subject to a cess from SWS, and the effective tax rate is expected to fall for some items.
IGST (Integrated Goods and Services Tax) is levied at the time of import. Under the GST reform that took effect on September 22, 2025 (commonly known as GST 2.0), IGST rates were reorganized into four brackets — 0%, 5%, 18%, and 40% (the previous 12% and 28% brackets were abolished). Most food falls under 0% or 5%, more heavily processed food falls under 18%, and some indulgence items such as carbonated drinks fall under 40%. Note that IGST is levied on the amount after adding Basic Customs Duty and SWS.
Some food items carry an additional Agriculture Infrastructure and Development Cess. Alcoholic drinks are the obvious case, but the structure of the rates has to be read correctly. In the FY2021-22 budget India cut the basic customs duty on alcohol from 150% to 50% and introduced a 100% AIDC at the same time, leaving the combined burden at 150%. Reading it as "150% basic duty plus AIDC" double-counts. CBIC Notification 14/2025 of February 13, 2025 further cut the combined burden on wine and spirits (HS 2204, 2205, 2206, and 2208) to 100%, and on bourbon whiskey to 50%.
The Union Budget 2025-26 proposed major structural reforms to India's tariff system. For Japanese food exporters, these reforms are an important change that will affect medium- to long-term business strategy.
A proposal was made to reduce industrial goods tariff rates from the previous 15 slabs to 8 (including the zero rate). This is expected to simplify the tariff system and improve predictability. There is also a policy direction to cap each item at a single cess or surcharge, aiming to end the current situation where multiple cesses are layered on top of each other.
A proposal has also been made to lower the Basic Customs Duty rate on imports for personal use from 20% to 10%. While this does not directly affect corporate food imports, it could be a tailwind for small-lot imports of Japanese food through cross-border e-commerce.
A Voluntary Compliance Scheme has been introduced, under which an importer who notices an omission in their declaration after clearance can correct it without penalty by voluntarily paying the duty and interest owed. This is a highly useful scheme in practice for importers, substantially reducing the risk associated with unintentional declaration errors.
Import tariffs on food vary greatly by item. Below is a summary of the tariff rates for categories that are especially important when considering food exports from Japan to India.
Basic Customs Duty on grains and pulses ranges from 0% to 30% depending on the item. Rice is often subject to a high tariff (around 80%), making Japanese rice a difficult item to export to India from a tariff perspective. On the other hand, some minor and specialty grains may be subject to a low tariff rate.
Dairy products are a protected category subject to high tariffs of 30% to 60%. High tariffs are maintained on butter, cheese, milk powder, and similar products to protect India's domestic dairy industry. For Japanese dairy manufacturers, a premium strategy that reflects the tariff cost in the product price is required.
Basic Customs Duty on processed food and seasonings is typically around 20% to 30%. Japanese soy sauce, miso, and dashi products fall into this category. Because there is a tendency for tariff rates to rise the more processed a food is (tariff escalation), the tariff burden differs greatly between exporting raw materials and exporting finished products.
Confectionery typically carries a Basic Customs Duty of around 30%. The Indian market is promising for Japanese confectionery makers, but since IGST (18% in most cases) is levied on top of the tariff, the effective tax rate becomes quite high. This tariff structure presupposes positioning in the premium price range.
Alcohol is the category with the heaviest combined basic duty and AIDC. Since CBIC Notification 14/2025 of February 13, 2025, the combined burden on wine and spirits is 100% (50% for bourbon whiskey alone); before that it was 150%. For anyone looking at exporting sake or whiskey to India, duty alone adds roughly the CIF price again, and IGST and state liquor taxes stack on top, so the market has to be approached at ultra-premium price points. That said, India's alcohol market is growing fast, and there is real potential for sake aimed at affluent consumers.
Importing food into India requires obtaining an import license from FSSAI (Food Safety and Standards Authority of India) as a legal requirement. Importing food without an FSSAI license is illegal and can result in the cargo being seized at port.
The license needed for food import is the "Central License." Food businesses with annual turnover of 20 crore rupees (about 360 million yen) or more, and any business that imports food, are required to obtain a Central License. The license is valid for one to five years and can be renewed.
FSSAI's Food Import Clearance System (FICS) is an online system that manages pre-clearance approval for food imports. FICS is integrated with ICEGATE (the electronic customs system) through a single window, allowing the entire process — from the import declaration through food safety inspection to approval — to be completed online. Under ideal conditions, clearance of a food shipment is completed in 7 to 10 business days, though it takes longer if inspection or additional documentation is required.
Food shipments arriving at port are inspected by an FSSAI officer. Label compliance, packaging condition, and completeness of documentation are checked, and samples are taken and sent for lab testing as needed. If the lab test results are compliant, FSSAI issues a No Objection Certificate (NOC), and the customs clearance process is completed. A shipment can fail if the label is missing the FSSAI logo, the vegetarian/non-vegetarian symbol, or the best-before date.
India's food labelling rules sit under the Food Safety and Standards (Labelling and Display) Regulations, and they apply strictly to imported food as well. The annual cycle that brings labelling changes into force together on July 1 each year was introduced in early 2024. An additional notification in January 2026 extended the transition period from 180 days to at least 365 days.
All packaged food is required to display the following: product name, ingredient list (in descending order of quantity used), allergen information, net content, date of manufacture and best-before/use-by date, the name and address of the manufacturer or importer, the FSSAI license number and logo, nutritional information (energy, protein, carbohydrates, fat, trans fat, etc.), and, for imported food, the country of origin.
India has its own mandatory marks: the vegetarian mark (a green dot inside a green square) and the non-vegetarian mark (a brown triangle inside a brown square). The non-vegetarian mark was changed from a dot to a triangle in the 2020 revision of the packaging labeling rules, and the triangle became mandatory from January 1, 2022 (so that consumers with color vision differences can distinguish it by shape). Keeping the old dot design makes the label non-compliant. This mark is required on all packaged food, and its omission can cause customs clearance to be refused. This is a regulatory point Japanese food manufacturers tend to overlook, and addressing it at the label-design stage before export is essential.
Under FSSAI regulations, some information on an imported food's label cannot be corrected. The lot/batch number, date information (manufacturing date and best-before date), and country of origin must already be on the label at the time it arrives at an Indian port, and cannot be corrected after the fact. Other information (such as minor corrections to nutritional information) can be corrected under certain conditions.
Customs clearance procedures for food are carried out online through ICEGATE (Indian Customs Electronic Gateway).
The main documents required for customs clearance are as follows: the Bill of Entry, Commercial Invoice, Packing List, Bill of Lading or Airway Bill, Certificate of Origin, a copy of the FSSAI import license, the pre-clearance approval from FICS, an insurance policy, and, where applicable, a certificate of origin for claiming preferential tariff treatment under JCEPA (the Japan-India Comprehensive Economic Partnership Agreement).
For exports from Japan to India, some items are eligible for preferential tariff rates under JCEPA (the Japan-India Comprehensive Economic Partnership Agreement). Since the applicable rate is lower than the standard Basic Customs Duty rate, companies should actively take advantage of it for eligible items. It is important to check in advance the procedure for obtaining a certificate of origin and the conditions for satisfying the rules of origin.
India's import tariffs have a complex structure in which Basic Customs Duty, the Social Welfare Surcharge, IGST, and, for some items, the Agriculture Infrastructure and Development Cess are layered on top of each other. Basic Customs Duty on food varies greatly by item, and since the rate is determined by HSN code, correctly identifying the classification is the first step.
Alcoholic beverages fall into the highest tariff category, carrying a very heavy tariff burden relative to the import price. This means market entry has to be premised on an ultra-premium price range. At the same time, India's alcohol market is growing, and there is some potential for sake aimed at affluent consumers.
Yes, there is a tendency called tariff escalation, where the more processed a food is, the higher its tariff rate. Since the tariff burden differs between processed foods and seasonings such as soy sauce, miso, and dashi versus raw materials, this is an important point to consider when designing your export format.
Obtaining an FSSAI import license is a legal requirement, and importing food without one is illegal and can result in the cargo being seized at port. Any business importing food is required to obtain a Central License.
India has mandatory marks unique to it: the vegetarian mark (a green dot) and the non-vegetarian mark (a brown triangle, changed from a dot in January 2022), and every packaged food needs this mark. Omitting it can cause customs clearance to be refused. In addition, the lot number, date information, and country of origin must already be on the label when the shipment arrives at port, and cannot be corrected afterward.
The starting point is to accurately identify the HSN code of the food to be imported and confirm the applicable tariff rate and optimal classification. Since the tariff rate can change with classification even for the same food, consulting with a customs advisor in advance is recommended. It also helps to move forward on obtaining the FSSAI Central License and handling labeling requirements such as the vegetarian mark, and to check whether the item is eligible for preferential tariffs under the Japan-India economic partnership agreement.
India Market: To succeed in exporting food to India, a pricing strategy that factors in tariff costs, along with a comprehensive approach that includes regulatory compliance, is required.
First is accurately confirming the HSN code and selecting the optimal classification. Even the same food can be subject to substantially different tariff rates depending on how it is classified, so consulting with a customs advisor in advance is recommended. Second is FSSAI regulations. Preparing labels in advance, especially handling the vegetarian/non-vegetarian mark, is essential. Third is selecting a reliable Indian customs broker. Engaging a broker experienced in food imports can minimize the risk of clearance delays.
localization From this perspective, product development tailored to Indian taste preferences, and middle-class setting a price range that targets that segment, are also important. Where businesses go wrong in India To avoid these pitfalls, thoroughly preparing on both fronts — the local regulatory environment and market needs — is the path to success.
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