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Dated: 03.02.2026

Post Budget 2026- Latest Customs Updates and Regulations including Key Trade Compliance and Procedural Changes

Clarification on Exemption for Remote Pilot Aircraft (RPA) for Military Use: Circular No. ​ 02/2026-Customs

The Government of India, through the Ministry of Finance, Department of Revenue, has issued Circular No. ​ 02/2026-Customs dated 1st February 2026, providing important clarifications regarding the exemption of Basic Customs Duty (BCD) and Integrated Goods and Services Tax (IGST) on Remote Pilot Aircraft (RPA) for military use. This circular aims to ensure uniformity in the interpretation and application of the exemption provided under S.No. 59 of Table II of Notification No. ​ 45/2025-Customs dated 24th October 2025. ​

What is RPA (Remote Pilot Aircraft)? ​

The term “Remote Pilot Aircraft” (RPA) refers to aircraft that are remotely piloted, regardless of the name by which they are known. ​ This includes:

• Drones
• Unmanned Aerial Vehicles (UAVs) ​
• Unmanned Aircraft Systems (UAS) ​

These aircraft are widely used for various purposes, including military operations, surveillance, reconnaissance, and other defense-related activities.

Exemption Details

The exemption from BCD and IGST is specifically applicable to RPAs imported for military use. ​ However, the exemption is subject to certain conditions:

1. Eligible Importers: The exemption is available only when RPAs are imported by:
   • Ministry of Defence ​
   • Defence forces
   • Defence Public Sector Units ​
   • Other Public Sector Units
   • Any other entity importing RPAs for the Defence forces. ​
2. Certification Requirement: To avail of the exemption, the importer must furnish a certificate issued by an officer not below the rank of Joint Secretary to the Government of India in the Ministry of Defence. ​ This certificate serves as proof that the imported RPAs are intended for military use.

Purpose of the Clarification ​

The circular clarifies the scope of the term “RPA” to ensure that all stakeholders, including importers and customs officials, have a clear understanding of the goods eligible for exemption. ​ By defining RPAs to include drones, UAVs, and UAS, the government aims to eliminate ambiguity and streamline the exemption process. ​

Implementation and Feedback ​

The Central Board of Indirect Taxes and Customs (CBIC) has requested that any difficulties faced in implementing this clarification be brought to its notice. ​ This demonstrates the government’s commitment to addressing concerns and ensuring smooth implementation of the exemption.

Customs Circular- 02/2026

Extension of Deferred Payment of Import Duty Rules, 2016: Key Updates and Benefits for Importers

The Government of India, through the Ministry of Finance and the Central Board of Indirect Taxes & Customs (CBIC), has introduced significant changes to the Deferred Payment of Import Duty Rules, 2016. ​ These updates aim to provide greater operational and financial flexibility to importers, fostering ease of doing business and supporting trade growth. ​ The changes, effective from March 1, 2026, include an extension of the deferred payment period and the addition of a new class of eligible importers. ​ Below, we delve into the details of these updates and their implications.

What is the Deferred Payment of Import Duty Scheme?

The Deferred Payment of Import Duty Rules, 2016, were introduced under Customs Notification No. ​ 134/2016-Customs (N.T.) ​ to allow certain classes of importers to defer the payment of import duties under Section 47 of the Customs Act, 1962. ​ This scheme provides importers with a grace period to settle their import duty payments, enabling smoother cash flow and operational efficiency. ​

Key Updates in the Deferred Payment of Import Duty Rules ​

1. Extension of Deferred Payment Period ​

The CBIC has extended the deferred payment period for import duties from 15 days to 30 days. ​ This change has been implemented through Notification No. ​ 13/2026-Customs (N.T.) ​ dated February 1, 2026. ​ The revised payment timelines are as follows:

• For goods corresponding to Bills of Entry returned for payment between the 1st day and the last day of any month (except March): Import duties must be paid by the 1st day of the following month. ​
• For goods corresponding to Bills of Entry returned for payment between the 1st day and the 31st day of March: Import duties must be paid by the 31st day of March. ​

This extension provides importers with additional time to manage their financial obligations, reducing the pressure of immediate payments and enhancing liquidity. ​

2. Introduction of ‘Eligible Manufacturer Importer’ ​

A new class of eligible importers, termed as ‘Eligible Manufacturer Importer,’ has been introduced under Notification No. ​ 12/2026-Customs (N.T.) ​ dated February 1, 2026. ​ These importers will be approved by the Directorate of International Customs, CBIC, and will be eligible to avail the deferred payment facility. ​

• Application Process: Detailed instructions and guidelines for approval will be issued separately. ​ Applications from eligible manufacturer importers can be submitted starting March 1, 2026. ​
• Validity Period: This facility will be available to eligible manufacturer importers until March 31, 2028. ​

This addition aims to support manufacturers by providing them with financial flexibility, enabling them to focus on production and business growth. ​

Implementation and Monitoring ​

The CBIC has directed Chief Commissioners of Customs to ensure uniform implementation of these changes across all field formations. ​ Reports related to the deferred payment of Customs import duty will be accessible through ICES dashboards, allowing Principal Commissioners and Commissioners of Customs to monitor timely payments as per the amended rules. ​

Benefits of the Updates

1. Extended Payment Period: The extension from 15 days to 30 days provides importers with more time to manage their finances, reducing the burden of immediate payments and improving cash flow. ​
2. Support for Manufacturers: The inclusion of ‘Eligible Manufacturer Importers’ in the deferred payment scheme is a significant step towards supporting domestic manufacturing and promoting the ‘Make in India’ initiative. ​
3. Ease of Doing Business: These changes align with the government’s vision to simplify trade processes and enhance operational efficiency for importers.
4. Uniform Implementation: The CBIC’s directive ensures consistent application of the rules across all customs formations, minimizing discrepancies and ensuring smooth operations. ​

Customs Circular- 03/2026

Understanding the Baggage Rules, 2026: A Comprehensive Guide for Travelers

Traveling to and from India involves navigating customs regulations, especially when it comes to baggage clearance. ​ To simplify procedures, enhance passenger facilitation, and ensure transparency, the Ministry of Finance has introduced the Baggage Rules, 2026 and the Customs Baggage (Declaration and Processing) Regulations, 2026. ​ These new rules, effective from February 1, 2026, aim to streamline the process for passengers and customs officials alike. ​ Here’s everything you need to know about the updated baggage regulations. ​

Key Objectives of the Baggage Rules, 2026 ​

The updated rules focus on:

• Simplifying procedures for baggage clearance. ​
• Enhancing passenger facilitation. ​
• Enabling electronic and advance declarations. ​
• Ensuring transparency and smooth clearance of passenger baggage. ​

Who Do These Rules Apply To? ​

The Baggage Rules, 2026 apply to all passengers arriving in or departing from India, including:

• Residents.
• Tourists (Indian and foreign origin).
• Non-resident Indians (NRIs).
• Overseas Citizens of India (OCI) cardholders. ​
• Foreigners with valid visas (including a new category for foreigners with long-term visas other than tourist visas). ​
• Crew members. ​
• Diplomatic personnel. ​

Key Provisions of the Baggage Rules, 2026

1. Declaration of Baggage ​

• Passengers carrying dutiable or prohibited goods must declare their baggage electronically using the Customs Declaration Form. ​
• Declarations can be filed upon arrival or up to three days in advance via the Atithi web or mobile application. ​
• Non-declaration or mis-declaration of baggage may lead to penalties under the Customs Act, 1962. ​

2. Personal Effects and Duty-Free Allowances ​

• Personal effects include items required for daily use during travel, excluding goods for commercial purposes. ​
• Used personal effects are allowed duty-free without limit unless they appear to be new or in original packaging.
• Duty-free allowances for passengers are as follows:
  • Residents, Tourists of Indian origin, and Foreigners with valid visas (other than tourist visas): ₹75,000. ​
  • Tourists of foreign origin: ₹25,000. ​
  • Crew members: ₹2,500. ​

3. Temporary Export and Import Certificates ​

• Passengers can apply for an export certificate for valuables before departure, which can be used for duty-free re-import upon return. ​
• Tourists can temporarily import valuables duty-free for use during their stay in India, provided they declare them and re-export within six months or upon departure. ​

4. Jewellery and Valuables ​

• Used personal jewellery and valuables required for daily necessities are allowed duty-free clearance. ​
• New jewellery and valuables not for daily use are subject to customs duty unless supported by an export certificate for re-import. ​
• Tourists can temporarily import jewellery for use during their stay, subject to declaration and mandatory re-export. ​

5. Goods in Commercial Quantity ​

• Goods in commercial quantities or prohibited items cannot be cleared as bona fide baggage. ​
• Marginal excess of goods may be cleared on payment of applicable customs duty, provided they are not prohibited. ​

6. Unaccompanied Baggage

• Unaccompanied baggage is subject to the same rules as accompanied baggage, except for general duty-free allowances. ​
• Declaration for unaccompanied baggage can be filed electronically via the ICEGATE platform. ​
• Unaccompanied baggage can be cleared at a customs station other than the station of arrival, provided it is properly manifested for transshipment. ​

7. Special Categories of Passengers ​

• Crew members are entitled to limited concessions under the Baggage Rules, 2026. ​
• Diplomatic officers and government officials returning to India after foreign assignments are subject to specific provisions. ​
• Import of firearms and motor vehicles as baggage is governed by the Foreign Trade Policy and ITC (HS) regulations. ​

8. Mishandled Baggage

• Mishandled baggage can be cleared at customs stations other than the port or airport of arrival, subject to verification and necessary documentation. ​

9. Land Border Arrivals ​

• Passengers arriving by land are only allowed duty-free clearance of used personal effects required for daily necessities. ​ General duty-free allowances for air or sea arrivals do not apply. ​

10. Import of Gold and Silver ​

• Eligible passengers can import gold and silver, subject to compliance with conditions outlined in Notification No. ​ 45/2025-Customs.

11. Verification

• Customs will conduct risk-based evaluations to verify declarations. ​ Routine or indiscriminate examination of bona fide baggage will be avoided to ensure passenger convenience.

Transfer of Residence Benefits ​

For residents and tourists of Indian origin, duty-free allowances under transfer of residence are determined based on the duration of stay abroad:

• 3-12 months: ₹1,50,000. ​
• 1-2 years: ₹3,00,000. ​
• More than 2 years: ₹7,50,000. ​

For foreigners with valid visas (other than tourist visas), duty-free allowances are based on their duration of stay in India:

• 6-12 months: ₹1,50,000. ​
• 1-2 years: ₹3,00,000. ​
• More than 2 years: ₹7,50,000. ​

Facilitative Measures

To ensure smooth implementation of the Baggage Rules, 2026:

• Passengers can use the Atithi web or mobile application for electronic declarations. ​
• Customs officers will issue temporary baggage import certificates or detention receipts for restricted or prohibited items. ​
• Field formations will conduct outreach programs to educate passengers about the revised rules.

Customs Circular- 04/2026​

Revolutionizing Trade Facilitation: Onboarding CDSCO, WCCB, Textile Committee, and MeitY on SWIFT 2.0

The Government of India, through the Ministry of Finance and the Central Board of Indirect Taxes & Customs (CBIC), has taken a significant step towards enhancing trade facilitation by integrating additional Partner Government Agencies (PGAs) into the Single Window Interface for Facilitating Trade (SWIFT) 2.0. This initiative, outlined in Circular No. ​ 05/2026-Customs dated February 1, 2026, aims to streamline the import and export process, reduce dwell time, and provide a single touchpoint for EXIM stakeholders.

What is SWIFT 2.0?

SWIFT 2.0 is an upgraded version of the Single Window Interface for Facilitating Trade, designed to integrate more than 60 PGAs in a phased manner. ​ It provides a unified platform for filing and processing Licences, Permits, Certificates, and Other Documents (LPCOs) required for import and export clearances. This system eliminates the need for stakeholders to interact with multiple agencies separately, thereby simplifying the process and enhancing efficiency. ​

Key Highlights of Circular No. 05/2026-Customs

1. Expansion of SWIFT 2.0:
   • Initially, three PGAs—Animal Quarantine and Certification Services (AQCS), Plant Quarantine Management System (PQMS), and Food Safety and Standards Authority of India (FSSAI)—were onboarded on a pilot basis. ​
   • The first phase of SWIFT 2.0 has now been expanded to include two more PGAs: Central Drugs Standard Control Organization (CDSCO) and Wildlife Crime Control Bureau (WCCB). ​
   • Additionally, the Ministry of Electronics and Information Technology (MeitY) and the Textile Committee have been integrated into SWIFT 2.0. ​
2. Unified Applications for NOC Processing:
   • The AQCS unified application is live for NOC processing at all ports. ​
   • PQMS unified application is operational at Delhi. ​
   • FSSAI unified application is live at FSSAI ports, including Delhi and Kolkata. ​
3. Integration of CDSCO and WCCB:
   • CDSCO and WCCB have been onboarded to SWIFT 2.0, with consolidated lists of data fields, document codes, and declarations finalized after consultations with the Ministry of Health & Family Welfare and the Ministry of Environment, Forest and Climate Change. ​
   • Annexure-A and Annexure-B of the circular provide detailed lists of data fields, document requirements, and declarations for WCCB and CDSCO. ​
4. Harmonization of LPCOs/NOCs:
   • To streamline the filing and processing of documents issued by PGAs, specific document codes have been assigned to each LPCO/NOC. ​
   • Annexure-C lists the new document codes for various PGAs, while Annexure-D provides document codes for trade purposes. ​
   • Two document codes issued under Circular No. ​ 03/2020-Customs have been updated, as detailed in Annexure-E. ​
5. Digital Integration:
   • Certificates issued by MeitY, such as Concessional Rate of Customs Duty Certificates (CCDC) and Compulsory Registration Order (CRO) exemption certificates, will now be generated and accessed through the SWIFT 2.0 dashboard. ​
   • Textile Committee test reports and prescribed fees can also be managed through the single-touch-point interface. ​
6. Collocation of PGA Officers:
   • Officers from AQCS, CDSCO, and WCCB have been collocated onto the IT infrastructure systems of Indian Customs under SWIFT 2.0. ​ This eliminates the need for stakeholders to produce documents separately before these authorities. ​
7. Stakeholder Feedback and Phased Rollout:
   • The functionalities of SWIFT 2.0 will initially be operational to gather feedback from stakeholders before mandatory implementation. ​
   • Five PGAs—FSSAI, AQCS, PQMS, WCCB, and CDSCO—will be fully integrated into SWIFT 2.0 by March 31, 2026.
   • All PGAs are expected to be onboarded by March 31, 2027. ​
8. Public Awareness and Implementation:
   • Field formations are instructed to issue Public Notices/Trade Notices to inform stakeholders about the changes and ensure proper filing of data and documents under SWIFT 2.0. ​
   • Any challenges in implementation should be promptly reported to the CBIC.

Benefits of SWIFT 2.0 Integration

The integration of additional PGAs into SWIFT 2.0 offers several advantages:

• Streamlined Processes: A single-window interface reduces the need for multiple interactions with different agencies, saving time and effort for importers and exporters. ​
• Reduced Dwell Time: By collocating PGA officers onto the Indian Customs IT infrastructure, the time taken for document verification and NOC processing is significantly reduced. ​
• Digital Transformation: The digital integration of certificates and reports ensures seamless validation and record-keeping, eliminating the need for physical document submission. ​
• Enhanced Transparency: The unified platform provides stakeholders with real-time access to their applications, certificates, and reports, ensuring greater transparency in the process.
• Improved Compliance: The harmonization of LPCOs/NOCs and the assignment of specific document codes ensure better compliance with regulations. ​

Customs Circular- 05/2026

Automation of Customs Processes in Import and Export: A Step Towards Enhanced Trade Facilitation ​

The Central Board of Indirect Taxes and Customs (CBIC), under the Ministry of Finance, Government of India, has introduced new measures to further streamline and automate customs processes for imports and exports. ​ These initiatives aim to enhance trade facilitation, improve transparency, and reduce physical interaction, thereby ensuring faster clearance of goods and promoting ease of doing business. ​

Key Highlights of the New Measures

1. Auto Goods Registration and Auto Out of Charge in Imports ​

CBIC has implemented automated systems for goods registration and clearance in imports to minimize manual intervention and expedite the process. ​ The key features include:

• Auto Goods Registration:
  • For AEO T2 & T3 entities, goods registration will now be carried out automatically upon arrival, replacing the existing web-based registration process. ​
  • Approved “Eligible Manufacturer Importers” as notified under Notification No. ​ 12/2026-Customs (N.T.) ​ dated 1 February 2026 will also benefit from this facility. ​
  • Importers with longstanding supply chains and those availing Direct Port Delivery (DPD) will be eligible for auto goods registration. ​
• Auto Out of Charge:
  • This facility will be extended to all importers, subject to payment of duty (if applicable) and compliance requirements. ​
  • AEO T2 and T3 entities will continue to enjoy the existing Auto Out of Charge facility without manual intervention, as introduced earlier under Circular 01/2025-Customs. ​

2. Auto Goods Registration for E-Sealed Cargo in Exports ​

To reduce physical interaction and delays in the export process, CBIC is enabling an online goods registration facility for exporters. ​ Key features include:

• Exporters will no longer need to approach Customs officers for goods registration after cargo arrival in the customs area.
• A pilot project for e-seal-based auto goods registration will be launched at Nhava Sheva, Mumbai (INNSA1). ​ Based on its success, the facility will be extended to other ports in a phased manner as e-seal scanners are implemented. ​

3. Auto Let Export Order (LEO) ​

CBIC has introduced Auto-Let Export Order (LEO) for facilitated Shipping Bills (SBs) that meet specific criteria:

• Shipping Bills not selected for examination or assessment. ​
• No requirement for any NOC from Participating Government Agencies (PGAs). ​
• Duty or cess related to the Shipping Bill is paid, if applicable. ​

This automated process will ensure faster clearance of export goods based on risk evaluation, further enhancing efficiency in export operations.

Implementation and Oversight ​

• Customs officers retain the authority to override automated processes by invoking a “HOLD” in the Customs System based on intelligence inputs. ​
• Zonal Heads are tasked with ensuring the strict implementation of these measures, including the integration of e-seal readers with the Customs System to operationalize auto goods registration for exports. ​
• A detailed advisory for online goods registration in exports will be issued by DG Systems. ​

Wide Publicity and Stakeholder Engagement ​

CBIC has directed all concerned authorities to ensure wide publicity of these changes through Trade Notices and Public Notices. ​ Stakeholders are encouraged to familiarize themselves with the new processes and report any difficulties to the Board for resolution.

Customs Circular – 06/2026

Enhancing Transparency and Efficiency in Customs Processes: Introduction of E-Scheduling and Body Worn Cameras

The Central Board of Indirect Taxes and Customs (CBIC), under the Ministry of Finance, Government of India, has consistently worked towards improving transparency, accountability, and ease of doing business in customs processes. ​ In line with these efforts, CBIC has announced two significant measures to enhance the examination of import cargo: the mandatory use of Body Worn Cameras (BWC) during physical examination and the introduction of a System-based Examination Application for e-Scheduling of cargo examination. These measures, outlined in Circular No. 07/2026-Customs dated 1st February 2026, aim to streamline operations, reduce disputes, and create a robust audit trail.

Key Highlights of the Circular

1. Mandatory Use of Body Worn Cameras (BWC) ​

To ensure transparency and accountability during the physical examination of imported goods, CBIC has mandated the use of Body Worn Cameras (BWC) by customs officers. ​ This initiative will be implemented across all customs formations by 1st April 2026. ​ The use of BWCs will help record the entire examination process, including interactions with importers, Customs Brokers, or their authorized representatives. ​

Key Features of BWC Implementation: ​

• Comprehensive Recording: The examination process will be recorded from the stage prior to opening packages or containers until the completion of the examination. ​ This includes capturing critical stages such as the condition of seals, verification of goods, sampling, and interactions. ​
• Secure Storage: All recordings will be securely stored and retained for two years. ​ In cases involving investigations, disputes, or litigation, recordings will be preserved until the final resolution of proceedings. ​
• Transparency and Accountability: Any interruptions in recording must be documented along with reasons, ensuring a transparent process. ​

2. E-Scheduling of Cargo Examination ​

CBIC has introduced a System-based Examination Application on ICEGATE 2.0 for scheduling physical examinations of imported goods. ​ This trade facilitation measure aims to improve efficiency, reduce delays, and provide certainty in the examination process. ​ The facility, tested on a pilot basis at ICD Tughlakabad, will be rolled out across all customs formations in a phased manner, with full implementation by 1st April 2026. ​

Key Features of E-Scheduling: ​

• Automated Slot Allocation: Examination slots will be automatically assigned to examining officers based on availability, minimizing delays and uncertainty. ​
• Real-Time Updates: Importers, IEC holders, and authorized Customs Brokers can view pending, scheduled, and completed examinations online. ​
• Rescheduling Flexibility: Rescheduling of examinations can be done electronically, with system-generated notifications sent to all stakeholders, including officers, importers, Customs Brokers, and custodians. ​
• Efficient Cargo Handling: Automated notifications will enable custodians to plan the placement of goods in the examination area in advance, ensuring smoother operations. ​
• Transparency and Audit Trail: The system operates in a rule-based manner, with system-generated audit trails and visibility of examination status. ​ Any changes to the schedule, such as rescheduling or placing examinations on hold, require approval from the Assistant/Deputy Commissioner with recorded reasons. ​

Implementation Timeline

Both measures—mandatory use of BWCs and the full rollout of the E-Scheduling Application—will be implemented by 1st April 2026. ​ CBIC has directed all Zonal Principal Chief Commissioners and Chief Commissioners to ensure the availability of fully operational BWCs for examining officers and to sensitize officers about the mandatory use of the e-Scheduling Application. ​

Benefits of the New Measures

The introduction of BWCs and e-Scheduling is expected to bring several benefits to the customs examination process:

1. Enhanced Transparency: Real-time recording and system-based scheduling will ensure a transparent and accountable examination process. ​
2. Improved Efficiency: Automated scheduling and notifications will reduce delays and streamline cargo handling. ​
3. Dispute Resolution: The availability of recorded evidence will minimize disputes and facilitate faster resolution in cases of investigation or litigation. ​
4. Ease of Doing Business: These measures align with CBIC’s commitment to improving trade facilitation and reducing procedural bottlenecks. ​

Next Steps

To ensure smooth implementation, CBIC has outlined the following actions:

• Issuance of detailed advisories by DG Systems regarding the e-Scheduling Application. ​
• Sensitization of officers involved in cargo examination on the proper use of BWCs and the e-Scheduling system. ​
• Monitoring of implementation by Principal Commissioners and Commissioners to ensure strict compliance. ​
• Issuance of necessary Standing Orders and Public Notices by respective jurisdictions well in advance. ​

Customs Circular – 07/2026

Understanding Notification No. 12/2026-Customs (N.T. ​): Key Amendments to Customs Regulations

The Government of India, through the Ministry of Finance (Department of Revenue), has introduced Notification No. 12/2026-Customs (N.T. ​), dated February 1, 2026. ​ This notification brings significant amendments to the principal notification No. ​ 135/2016-Customs (N.T. ​), which was originally issued on November 2, 2016, and subsequently amended by Notification No. ​ 78/2020-Customs (N.T.) ​ on August 19, 2020. ​ Let’s dive into the details of this latest update and understand its implications.

Background of Notification No. 135/2016-Customs (N.T.) ​

Notification No. ​ 135/2016-Customs (N.T.) ​ was a key regulation under the Customs Act, 1962, aimed at streamlining customs procedures and providing clarity on various aspects of import duty payments. Over the years, it has undergone amendments to address evolving trade practices and facilitate ease of doing business.

Key Amendments Introduced in Notification No. ​ 12/2026-Customs (N.T.) ​

The latest notification introduces two major changes to the principal notification:

1. Deferred Payment of Import Duty for Eligible Manufacturer Importers:
   • A new category, “Eligible Manufacturer Importer,” has been added to the notification. ​
   • This category of importers is now permitted to make deferred payments of import duty until March 31, 2028. ​
   • This amendment is expected to ease the financial burden on manufacturers who import goods, allowing them to manage their cash flow more effectively.
2. Definition of Eligible Manufacturer Importer:
   • The notification provides clarity on the term “Eligible Manufacturer Importer” by defining it in the Explanation section. ​
   • According to the amendment, an Eligible Manufacturer Importer refers to a “Manufacturer Importer.” ​ While the notification does not elaborate further, this definition likely includes manufacturers who import raw materials or goods for production purposes.

Implications of the Amendments

The introduction of deferred payment for import duties is a significant step toward supporting manufacturers in India. ​ By allowing them to delay payment until March 31, 2028, the government aims to provide financial flexibility, especially for businesses that rely heavily on imported goods for their operations. ​ This move aligns with the broader goal of promoting manufacturing under initiatives like “Make in India.”

Additionally, the clear definition of “Eligible Manufacturer Importer” ensures transparency and reduces ambiguity, making it easier for businesses to understand their eligibility for deferred payment benefits. ​

Effective Date

The notification explicitly states that these amendments will come into force on the date of its publication in the Official Gazette, i.e., February 1, 2026.

Customs Notification- 12/2026 (N.T.) ​

Understanding the Deferred Payment of Import Duty (Amendment) Rules, 2026

Introduction

The Government of India, through the Ministry of Finance (Department of Revenue), has introduced amendments to the Deferred Payment of Import Duty Rules, 2016. ​ These amendments, notified via Notification No. ​ 13/2026-Customs (N.T. ​), aim to streamline the payment process for import duties and provide clarity on timelines for compliance. The amended rules will come into effect on March 1, 2026. ​ This blog will provide a detailed overview of the changes and their implications for importers.

Background

The Deferred Payment of Import Duty Rules, 2016, were initially published in the Gazette of India on November 2, 2016, under G.S.R. ​ 1037(E). ​ These rules were last amended on August 3, 2023, vide G.S.R. ​ 585(E). ​ The latest amendment, dated February 1, 2026, introduces changes to Rule 4, which governs the timeline for payment of import duties.

Key Amendments in the 2026 Rules ​

The amendment focuses on simplifying the payment schedule for import duties based on the Bill of Entry. ​ The revised clauses under Rule 4 are as follows:

1. Payment Timeline for Months Other Than March ​
   • For goods corresponding to the Bill of Entry returned for payment between the 1st day and the last day of any month (except March), the import duty must be paid by the 1st day of the following month. ​
   • This change ensures a consistent and predictable timeline for importers to settle their dues.
2. Payment Timeline for March ​
   • For goods corresponding to the Bill of Entry returned for payment between the 1st day and the 31st day of March, the import duty must be paid by March 31. ​
   • This adjustment accounts for the financial year-end, ensuring that all payments are cleared before the close of the fiscal year.

Implications for Importers

The amendments aim to simplify the payment process and align it with the financial calendar. Here are the key benefits and implications for importers:

• Improved Compliance: Clear deadlines reduce ambiguity and help importers plan their payments effectively.
• Streamlined Processes: The distinction between March and other months ensures that fiscal year-end payments are completed on time. ​
• Ease of Business: The amendments reflect the government’s commitment to facilitating ease of doing business by providing a structured payment framework.

Effective Date

The Deferred Payment of Import Duty (Amendment) Rules, 2026, will come into force on March 1, 2026. ​ Importers must familiarize themselves with the new timelines to ensure compliance and avoid penalties.

Customs Notification- 13/2026 (N.T.)

Understanding the Customs Baggage (Declaration and Processing) Regulations, 2026: A Comprehensive Guide

The Ministry of Finance, through the Central Board of Indirect Taxes and Customs (CBIC), has introduced the Customs Baggage (Declaration and Processing) Regulations, 2026, which will come into effect on February 2, 2026. ​ These regulations aim to streamline the declaration and processing of baggage for passengers arriving in or departing from India. ​ This blog provides a detailed overview of the regulations, their implications, and the processes involved.

Key Highlights of the Regulations

1. Scope and Applicability:
   • The regulations apply to all passengers traveling to and from India, including their accompanied and unaccompanied baggage. ​
   • They replace previous regulations, including the Passenger’s Baggage (Levy of Fees) Regulations, 1966, Baggage (Transit to Customs Stations) Regulations, 1967, and Customs Baggage Declaration Regulations, 2013. ​
2. Introduction of Automated Systems:
   • The regulations emphasize the use of an automated system for baggage declaration. Passengers can declare their baggage electronically via the ICEGATE portal (https://www.icegate.gov.in) or the Atithi mobile/web application. ​
   • This digital approach aims to simplify the process and reduce paperwork.
3. Green and Red Channels:
   • Green Channel: For passengers who are not carrying dutiable or prohibited goods. ​
   • Red Channel: For passengers carrying dutiable goods or goods subject to import prohibitions. ​
4. Customs Baggage Declaration (CBD):
   • Passengers must fill out the Customs Baggage Declaration Form (CBD-I) electronically for accompanied baggage and CBD-II for unaccompanied baggage. ​
   • The declaration can be made up to three days before arrival in India or before the arrival of unaccompanied baggage. ​
5. Temporary Import or Re-import of Baggage:
   • Passengers carrying personal effects (other than used items) for temporary use or re-import must declare these items electronically or otherwise before departure from India. ​
   • Export certificates (CBD-III) and temporary baggage import certificates (CBD-IV) will be issued for such declarations.
6. Examination and Clearance:
   • Passengers must present their baggage at the Red Channel or customs-notified area for verification and clearance. ​
   • Bona fide baggage will be cleared after verification, while prohibited goods or unpaid dutiable items may be detained or seized. ​
7. Transit of Unaccompanied Baggage:
   • Unaccompanied baggage can be transported to a customs station of the passenger’s choice, subject to conditions such as sealing the baggage and executing a bond and security.
8. Custody and Disposal of Baggage:
   • Prohibited or dutiable goods may be detained by customs and returned to the passenger upon departure or disposed of after six months if unclaimed. ​
   • Sale proceeds from unclaimed baggage will be used to cover expenses, duties, and charges, with any remaining balance paid to the owner or transferred to the Central Government. ​
9. Filing by Authorized Persons:
   • Declarations for unaccompanied baggage can be filed by authorized persons, including family members or legal guardians for passengers under 18 years of age. ​
10. Retention of Records:
    • All declarations and supporting documents must be retained for five years from the date of filing. ​
11. Penalties:
    • Non-compliance with the regulations may result in penalties under Section 158(2)(ii) of the Customs Act, 1962. ​

Customs Baggage Declaration Form (CBD-I) ​

The Customs Baggage Declaration Form (CBD-I) is a mandatory document for passengers arriving in India with dutiable or prohibited goods. ​ It includes details such as:

• Personal information (name, passport number, nationality, etc. ​).
• Travel details (flight number, date of arrival, countries visited). ​
• Information about baggage and goods being carried. ​
• Declaration of pets, jewelry, prohibited items, and currency exceeding prescribed limits. ​

Passengers must report to the Red Channel if they answer “Yes” to any of the questions related to prohibited or dutiable items. ​

Duty-Free Allowances

The regulations specify duty-free allowances for different categories of passengers:

1. Indian residents, tourists of Indian origin, or foreigners with valid visas (excluding infants):
   • Duty-free allowance of ₹75,000 for passengers arriving through modes other than land. ​
2. Tourists of foreign origin (excluding infants):
   • Duty-free allowance of ₹25,000 for passengers arriving through modes other than land. ​
3. All passengers arriving through land routes:
   • No duty-free allowance.
4. Indian residents or tourists of Indian origin residing abroad for over one year:
   • Duty-free allowance for jewelry: Female passengers up to 40 grams; male passengers up to 20 grams. ​
5. Alcohol and tobacco products:
   • Duty-free allowance includes 2 liters of alcohol or wine, 100 cigarettes, 25 cigars, or 125 grams of tobacco. ​
6. Laptops:
   • One new laptop (including notepad) is allowed duty-free for passengers aged 18 years and above. ​

Currency Declaration Form ​

Passengers carrying foreign exchange exceeding $10,000 (aggregate value) or foreign currency notes exceeding $5,000 must complete the Currency Declaration Form. ​ This form is required for currency conversion and reconversion purposes. ​

Unaccompanied Baggage Declaration (CBD-II) ​

For unaccompanied baggage, passengers must fill out the CBD-II form, providing details such as:

• Personal information. ​
• Authorized person details (if applicable). ​
• Baggage type, country of consignment, and transport details. ​
• Articles imported, including description, quantity, and value.

Export Certificate (CBD-III) ​

Passengers intending to temporarily export personal effects for duty-free re-import must declare these items in advance and obtain an export certificate (CBD-III). ​ This certificate is valid for six months or until the passenger’s first return to India. ​

Temporary Baggage Import Certificate (CBD-IV) ​

Tourists carrying personal effects for temporary use in India must declare these items upon arrival and obtain a temporary baggage import certificate (CBD-IV). ​ The articles must be re-exported upon departure or within six months. ​

Detention Receipt (CBD-V) ​

If prohibited or dutiable goods are detained by customs, a detention receipt (CBD-V) will be issued. ​ The detained goods will remain in customs custody and may be returned to the passenger upon departure or disposed of after six months if unclaimed.

​Customs Notification – 15/2026 (N.T.)

Government of India Amends Customs Notifications: Key Updates and Implications

On February 1, 2026, the Ministry of Finance (Department of Revenue) issued Notification No. 01/2026-Customs, introducing significant amendments to several existing customs notifications. These changes, made under the authority of Section 25 of the Customs Act, 1962, and Section 110 of the Finance Act, 2018, aim to address public interest and streamline customs regulations. ​ The notification will come into effect on February 2, 2026. ​

Here’s a detailed breakdown of the amendments and their implications:

Key Amendments to Existing Notifications

1. Extension of Validity Period ​
   • Notification No. ​ 248-Cus (dated August 2, 1976): The validity period mentioned in the second paragraph has been extended from March 31, 2026, to March 31, 2028. ​
   • Notification No. ​ 32/1997-Customs (dated April 1, 1997): Similarly, the validity period in the second paragraph has been extended to March 31, 2028. ​
   • Notification No. ​ 24/2001-Customs (dated March 1, 2001): The validity period in the second paragraph has been updated to March 31, 2028. ​
   • Notification No. ​ 25/2001-Customs (dated March 1, 2001): The validity period in the second paragraph has been extended to March 31, 2028. ​

Implications: These extensions provide businesses and stakeholders with additional time to benefit from the provisions of these notifications, ensuring continuity and stability in customs regulations.

2. Inclusion of Battery Energy Storage Systems (BESS) ​
   • Notification No. ​ 25/2002-Customs (dated March 1, 2002): A new amendment has been introduced in the table under S. No. 69A, where the term “Battery Energy Storage Systems (BESS)” has been added after “Electrically Operated Vehicles.” ​

Implications: This amendment reflects the government’s focus on promoting sustainable energy solutions and supporting the adoption of battery energy storage systems. ​ It aligns with India’s commitment to renewable energy and reducing carbon emissions.

3. Omission of Specific Entries ​
   • Notification No. ​ 36/2024-Customs (dated July 23, 2024): Several entries in the table, including Sl. ​ Nos. 5, 6, 7, 8, 9, 10, 12, 13, 14, 21, 38, 39, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, and 55, have been omitted. ​ Additionally, a proviso has been added to the second paragraph, stating that the notification will cease to have effect after April 30, 2026. ​

Implications:

The omission of specific entries and the addition of a sunset clause indicate the government’s intent to streamline customs regulations and phase out certain provisions. ​ Businesses relying on these entries should prepare for the changes before the specified deadline.

4. Introduction of Sunset Clause ​
   • Notification No. ​ 29/2025-Customs (dated May 9, 2025): A new paragraph has been inserted, stating that the notification will cease to have effect after March 31, 2028. ​

Implications:

The inclusion of a sunset clause provides clarity on the duration of the notification’s applicability, allowing businesses to plan accordingly.

Effective Date of Amendments

The amendments introduced in Notification No. 01/2026-Customs will come into force on February 2, 2026. Businesses and stakeholders are advised to review the changes and ensure compliance with the updated provisions.

Customs Notification- 01/2026

Government of India Amends Customs Notification to Boost Public Interest and Economic Growth

On February 1, 2026, the Ministry of Finance (Department of Revenue) issued Notification No. ​ 02/2026-Customs, introducing significant amendments to the earlier Notification No. ​ 45/2025-Customs dated October 24, 2025. ​ These changes, published in the Gazette of India, aim to streamline customs duties, promote public interest, and support key industries such as renewable energy, defense, and nuclear power.

Key Highlights of the Notification

1. Amendments to TABLE I ​

The notification introduces a series of changes to TABLE I, which includes the omission, substitution, and addition of specific Serial Numbers (S. Nos ​.) and their corresponding entries. ​ These changes are aimed at rationalizing customs duties and providing exemptions for certain goods. Below are the major updates:

• Omissions: Several S. Nos. ​ and their entries have been omitted, effective from May 1, 2026, or April 1, 2026, depending on the item. ​ For instance, S. Nos. 1, 4, 7, 10, and many others have been removed to simplify the customs structure.
• Substitutions: Certain S. Nos. ​ have been updated with new conditions or extended validity periods. ​ For example:
  • S. No. 5 now includes a proviso stating that it will cease to have effect after March 31, 2028. ​
  • S. No. 14 and S. No. ​ 58 have been updated to extend their validity from March 31, 2026, to March 31, 2028. ​
• Additions: New S. Nos. ​ have been added to provide exemptions for specific goods. Notable additions include:
  • S. No. 84A: Monazite (Tariff Code: 2612 20 00) with a customs duty of “Nil.” ​
  • S. No. 110A: Sodium antimonate for use in the manufacture of solar glass, with a customs duty of “Nil” until March 31, 2028. ​
  • S. No. 227A and 227B: Goods for the generation of nuclear power, including control and protection absorber rods and burnable absorber rods, with a customs duty of “Nil.” ​
  • S. No. 334A: Raw materials for the manufacture of aircraft parts for maintenance, repair, or overhauling, imported by Public Sector Units under the Ministry of Defence, with a customs duty of “Nil” until March 31, 2028. ​

2. Updates to Conditions in the ANNEXURE to TABLE I ​

The notification introduces new conditions to ensure compliance and promote exports:

• Condition No. 88: Exemption is granted if items manufactured using imported goods are exported within 12 months of import. ​
• Condition No. 89: Exemption is provided for goods imported for defense purposes, subject to certification by a Joint Secretary in the Ministry of Defence. ​

3. Updates to Lists in TABLE I ​

The notification expands the scope of goods eligible for exemptions under specific lists:

• List 3: Includes new pharmaceutical products such as Ribociclib, Abemaciclib, Venetoclax, and others. ​
• List 22: Adds rare medical conditions like Congenital Hyperinsulinemic Hypoglycemia (CHI), Familial Homozygous Hypercholesterolemia, and Primary Immune Deficiency Disorders. ​

4. Amendments to TABLE II ​

The notification also introduces changes to TABLE II, which deals with goods required for specific projects:

• S. No. 66: Substituted to include goods required for setting up nuclear power projects, with exemptions valid until September 30, 2035. ​
• Condition No. 34: Added to ensure that goods imported for nuclear power projects are registered with the Customs House under the Project Import Regulations, 1986. ​

5. Updates to Lists in TABLE II ​

The notification adds a new entry to List 2, allowing exemptions for goods required for any nuclear power project sponsored by the Department of Atomic Energy, provided they comply with the Project Import Regulations, 1986. ​

6. Omissions in TABLE IV

S. No. 1 and its entries in TABLE IV have been omitted, effective April 1, 2026. ​

Implications of the Notification

The amendments introduced in Notification No. ​ 02/2026-Customs are expected to have far-reaching implications for various industries and sectors. Here are some of the key impacts:

1. Boost to Renewable Energy Sector: The inclusion of exemptions for goods used in the manufacture of solar photovoltaic cells, modules, and wind-operated electricity generators will significantly reduce costs for manufacturers and promote the adoption of renewable energy technologies. ​
2. Support for Defense and Aerospace: The notification provides customs duty exemptions for raw materials and components used in the manufacture, maintenance, and repair of aircraft and their parts. ​ This move is expected to strengthen India’s defense capabilities and promote domestic manufacturing in the aerospace sector.
3. Encouragement for Nuclear Power Projects: By extending exemptions for goods required in nuclear power projects until 2035, the government aims to support the development of clean and sustainable energy sources. ​
4. Focus on Public Health: The addition of new pharmaceutical products and rare medical conditions to the exemption lists highlights the government’s commitment to improving healthcare access and affordability.
5. Simplification of Customs Procedures: The omission of redundant entries and the introduction of new conditions aim to streamline customs processes, reduce compliance burdens, and encourage exports.

Customs Notification- 02/2026

Understanding Notification No. 03/2026-Customs: Key Amendments to Indian Customs Regulations

On February 1, 2026, the Ministry of Finance (Department of Revenue) issued Notification No. 03/2026-Customs, which introduces significant amendments to two key notifications: 11/2018-Customs and 11/2021-Customs. These changes, made under the powers conferred by the Customs Act, 1962, and the Finance Acts of 2018 and 2021, aim to address public interest and streamline customs regulations. ​ Below, we provide a detailed overview of the amendments and their implications.
Key Amendments to Notification No. ​ 11/2018-Customs
Notification No. ​ 11/2018-Customs, originally issued on February 2, 2018, has undergone several changes as outlined in the new notification. ​ These amendments will come into effect on May 1, 2026, unless stated otherwise. ​ Here are the major updates:
Insertion of New Items in the Table: ​
Against Sl. ​ No. 1, Column (2): ​
The figures “2106 90 51” will be added after “2009 19 00.” ​
The figures “2504, 2506” will be added after “2208.” ​
The figures “2811 22 00” will be added after “2516 12 00.” ​
The figures “3801” will be added after “3406.” ​
These additions expand the scope of goods covered under the notification, potentially impacting import duties and regulations for these items.
Omission of Specific Entries: ​
Sl. No. 7 and Sl. ​ No. 8H along with their respective entries will be omitted. ​ The omission of these entries will take effect on May 1, 2026, and April 1, 2026, respectively. ​
Substitution of Entries: ​
Sl. No. 54A: The existing entries will be replaced with “Spent catalyst or ash containing precious metals, falling under heading 7112” effective April 1, 2026. ​
Sl. No. 59: The existing entries will be substituted with “All goods falling under heading 9503.” ​
These changes reflect the government’s effort to update the classification and treatment of specific goods under customs regulations. ​
Key Amendments to Notification No. ​ 11/2021-Customs
Notification No. ​ 11/2021-Customs, issued on February 1, 2021, has also been amended under Notification No. 03/2026-Customs. The changes are as follows:
Substitution of Entries: ​
Sl. No. 13A: The new entry specifies that goods falling under heading “4011 30 00” will be subject to a reduced customs duty rate of 0.5%, except for goods covered under Sl. ​ Nos. 155 and 156 of Table I of Notification No. 45/2025-Customs, dated October 24, 2025.
Omission of Item: ​
Against Sl. ​ No. 20, Column (3): Item (iv) will be omitted, effective April 1, 2026. ​
These amendments aim to refine the scope of goods eligible for reduced customs duty rates and streamline the classification of items under the notification. ​
Implementation Timeline
The notification specifies that the amendments will come into effect on different dates:
April 1, 2026: Certain entries will be omitted or substituted, including Sl. ​ No. 8H and Sl. ​ No. 54A under Notification No. 11/2018-Customs and Sl. ​ No. 13A under Notification No. ​ 11/2021-Customs.
May 1, 2026: Additional items will be inserted into the table under Notification No. ​ 11/2018-Customs, and Sl. ​ No. 7 will be omitted. ​
Implications of the Amendments
The amendments introduced by Notification No. ​ 03/2026-Customs are expected to have several implications:
Impact on Importers and Exporters:
Businesses dealing with the newly added items under Notification No. 11/2018-Customs will need to review the updated customs duty rates and compliance requirements.
The omission of certain entries may affect the import/export of specific goods, requiring businesses to reassess their strategies. ​
Changes in Duty Rates:
The substitution of entries under Notification No. ​ 11/2021-Customs introduces a reduced duty rate of 0.5% for certain goods, which could benefit importers dealing with these items. ​
Alignment with Public Interest:
The government’s decision to amend these notifications reflects its commitment to aligning customs regulations with public interest and economic priorities. ​
Customs Notification- 03/2026

Rescission of Customs Notifications: A Step Towards Public Interest

The Ministry of Finance, through the Central Board of Indirect Taxes and Customs (CBIC), has issued a significant notification [No. 05/2026-Customs] on February 1, 2026, which marks a pivotal change in the customs framework of India. ​ This notification, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), highlights the government’s decision to rescind certain customs notifications in the interest of the public. ​ Let’s delve into the details of this notification and understand its implications.

Key Highlights of the Notification

1. Rescission of Notifications: The Central Government, exercising its powers under sub-section (1) of Section 25 of the Customs Act, 1962, has decided to rescind two specific notifications:
   • Notification No. 11/2004-Customs: Issued on January 8, 2004, and published in the Gazette of India under G.S.R. ​ 24(E). ​
   • Notification No. 27/2016-Customs: Issued on March 31, 2016, and published in the Gazette of India under G.S.R. ​ 380(E). ​

These notifications will no longer be in effect starting February 2, 2026. ​ However, it is important to note that any actions taken or omitted under these notifications before their rescission will remain valid. ​

2. Effective Date: The rescission will come into force on February 2, 2026, providing stakeholders with a clear timeline to adapt to the changes. ​
3. Authority Behind the Notification: The notification has been issued by Anurima Sharma, Director (Customs), under the authority of the Central Government. ​

Understanding the Context

The Customs Act, 1962, empowers the Central Government to make changes to customs duties and regulations in the interest of the public. ​ Section 25(1) of the Act allows the government to exempt goods from customs duties or rescind previous notifications if deemed necessary for public welfare. ​

In this case, the government has decided to withdraw two specific notifications. While the document does not explicitly state the reasons for rescission, such actions are typically aimed at streamlining customs procedures, removing outdated provisions, or aligning policies with current economic and trade priorities.

Implications of the Rescission

1. Impact on Stakeholders: Businesses and individuals who were benefiting from the provisions of the rescinded notifications will need to review their operations and ensure compliance with the updated customs regulations. It is crucial for stakeholders to understand the changes and adapt accordingly.
2. Public Interest: The government’s decision to rescind these notifications reflects its commitment to serving the public interest. ​ By removing outdated or redundant provisions, the customs framework can become more efficient and transparent.
3. Preparation for Change: With the rescission taking effect on February 2, 2026, stakeholders have a short window to prepare for the transition. ​ It is advisable to consult with legal and customs experts to understand the implications and make necessary adjustments.

Customs Notification- 05/2026

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Source: CBIC, Ministry of Finance, Govt. of India

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