Where tariff item 8504 40 40 sits in the schedule
| Level | Description |
|---|
| 85 | Chapter 85: Electrical machinery and equipment and parts thereof; sound recorders and reproducers |
| 8504 | Heading 8504: Electrical transformers, static converters (for example, rectifiers) and inductors |
| 8504 40 | Sub-heading 8504 40: Static converters |
| 8504 40 40 | Voltage regulator and stabilizers (other than automatic). Unit: u. Import policy: Free |
Heading 8504 holds 23 tariff items in this dataset and their standard rates run from 7.5% to 20%, so on this heading the eight digit line a consignment is classified under decides what it costs. This line sits at 20%.
Duty on an import of this item
Put your own assessable value in and the whole stack re-works on this line's own rates: basic customs duty at 20%, the Social Welfare Surcharge charged on that duty rather than on the value, and integrated tax at 18% on the value plus both. Assessable value is cost, insurance and freight plus landing charges where they apply, not the invoice value on its own.
| Rate | Levy | Amount |
|---|
| 20% | Basic customs duty, of the assessable value | ₹2,00,000 |
| 10% | Social Welfare Surcharge, of the basic customs duty | ₹20,000 |
| 18% | IGST, of value plus the duties above | ₹2,19,600 |
| 43.96% | Total duty and tax, as a share of the assessable value | ₹4,39,600 |
₹2,00,000Payable with a duty-credit scripOf this, the basic customs duty of ₹2,00,000 can be paid with duty credit scrips. The remaining ₹2,39,600 is paid in cash. RoDTEP on this tariff line, the export side
The same eight digit code decides what an exporter earns. Appendix 4R to the Handbook of Procedures gives tariff item 8504 40 40 a RoDTEP rate of 0.7% of FOB value, notified by Notification 32/2024-25 and in force from 10 October 2024. Appendix 4R is the schedule for exports from the Domestic Tariff Area.
Notification 74/2025-26 ran the scheme to 30 September 2026, which has passed, so check DGFT for a continuation notification before relying on the figure above. Rates come from Appendix 4R and Appendix 4RE as DGFT publishes them. Work the entitlement on your own FOB value and quantity.
Preferential rates by origin
Where a trade agreement covers this line, the preferential rate replaces the basic customs duty rate, and it pulls the surcharge and the integrated tax down with it. At 0% for Japan, the whole bill on ₹10,00,000 falls from ₹4,39,600 to ₹1,80,000.
Japan0%
Nepal0%
SAFTA (LDC) countries0%
Sri Lanka0%
ASEAN countries5%
Malaysia5%
Philippines5%
United Arab Emirats5%
Least Developed Countries10%
Singapore10%
MERCOSUR countries16%
A preference is never automatic. It applies against a valid certificate of origin, and the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 put the burden of proving origin on the importer. These are the 2025 schedule.
Other tariff items under heading 8504
| Code | Description | Duty | IGST | Export rate |
|---|
| 8504 10 10 | Conventional type | 7.5% | 18% | 0.7% |
| 8504 10 20 | For compact fluorescent lamps | 7.5% | 18% | 0.7% |
| 8504 10 90 | Other | 7.5% | 18% | 0.7% |
| 8504 21 00 | Having a power handling capacity notexceeding 650 kVA | 10% | 18% | 0.7% |
| 8504 22 00 | Having a power handling capacity exceeding 650 kVA but not exceeding 10,000 kVA | 10% | 18% | 0.7% |
| 8504 23 10 | Having a power handling capacity exceeding 10,000 kVA but not exceeding 50,000 kVA | 10% | 18% | 0.5% |
| 8504 23 20 | Having a power handling capacity exceeding 50,000 kVA but not exceeding 1,00,000 kVA | 10% | 18% | 0.5% |
| 8504 23 30 | Having a power handling capacity exceeding 1,00,000 kVA but not exceeding 2,50,000 kVA | 10% | 18% | 0.5% |
| 8504 23 40 | Having a power handling capacity exceeding 2,50,000 kVA | 10% | 18% | 0.5% |
| 8504 31 00 | Having a power handling capacity not exceeding 1 kVA | 10% | 18% | 0.7% |
| 8504 32 00 | Having a power handling capacity exceeding 1 kVA but not exceeding 16 kVA | 10% | 18% | 0.7% |
| 8504 33 00 | Having a power handling capacity exceeding 16 kVA but not exceeding 500 kVA | 10% | 18% | 0.7% |
| 8504 34 00 | Having a power handling capacity exceeding 500 kVA | 10% | 18% | 0.7% |
| 8504 40 10 | Electric inverter | 20% | 18% | 0.7% |
| 8504 40 21 | Dip bridge rectifier | 20% | 18% | 0.7% |
| 8504 40 29 | Other | 20% | 18% | 0.7% |
| 8504 40 30 | Battery chargers | 20% | 18% | n/a |
| 8504 40 90 | Other | 20% | 18% | 0.7% |
| 8504 50 10 | Choke coils (chokes) | 7.5% | 18% | 0.7% |
| 8504 50 90 | Other | 7.5% | 18% | 0.7% |
| 8504 90 10 | Of transformers | 10% | 18% | 0.7% |
| 8504 90 90 | Other | 15% | 18% | 0.7% |
What this means in plain English
Bring in ₹10,00,000 of voltage regulator and stabilizers (other than automatic) and customs will ask for ₹4,39,600, which is 43.96% of what the consignment is assessed at. That is not one charge. It is four, and each is charged on a base that includes the ones before it.
- Basic customs duty, ₹2,00,000 at 20% of the assessable value.
- Social Welfare Surcharge, ₹20,000 at 10% of that duty rather than of the value, under section 110 of the Finance Act, 2018.
- Integrated tax, the large one: ₹2,19,600 at 18% on the value plus the duties above it, under section 3(8) of the Customs Tariff Act, 1975. Carried under CBIC notification 045/2025, schedule I229.
Read the duty rate as a ceiling, not a bill. 20% is the standard rate in the First Schedule, before any exemption notification, and the total above carries no Agriculture Infrastructure and Development Cess, no duty stated per unit and no trade remedy duty.
What is and is not inside these figures, written once for the whole chapter.
Paying part of this with a duty-credit scrip
Of the ₹4,39,600 above, exactly ₹2,00,000 can be paid with a RoDTEP or RoSCTL duty-credit scrip instead of cash, because Regulation 6(1) of the Electronic Duty Credit Ledger Regulations, 2021 confines the credit in an e-scrip to duties of customs specified in the First Schedule to the Customs Tariff Act, 1975. The remaining ₹2,39,600 is paid in cash.
A scrip bought below face value therefore saves that discount on ₹2,00,000, not on ₹4,39,600. How the buy side works, or read what a duty-credit scrip is end to end.
Where these rates come from
The First Schedule states the duty on this line as "20%". Integrated tax is carried under CBIC notification 045/2025. How the figures in this chapter are checked, and when they were last checked is in the meta line at the top of this page.
This is the tariff arithmetic on a published rate, not an assessment. Goods are assessed by the proper officer under section 17 of the Customs Act, 1962, and valuation, exemption notifications, anti-dumping and safeguard duties can all change what is finally payable. A wrong tariff line makes every number on this page wrong together, so this is not classification advice.
