Government of India Announces Customs Duty Exemptions on Essential Goods

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Dated: 02.04.2026

Government of India Announces Customs Duty Exemptions on Essential Goods

The Government of India, through the Ministry of Finance (Department of Revenue), has issued Notification No. 12/2026–Customs, dated 1st April 2026, announcing significant exemptions on customs duties for a wide range of goods. This notification, published in the Gazette of India, is set to come into effect from 2nd April 2026 and will remain valid until 30th June 2026. The exemptions are aimed at promoting public interest and supporting various industries by reducing the cost of importing essential goods.

Key Highlights of the Notification

Objective: The notification is issued under the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962. The Central Government has determined that these exemptions are necessary to serve the public interest.
Scope of Exemptions: The notification provides a complete exemption from customs duty for specific goods listed in the table below. These goods fall under various headings, sub-headings, or tariff items of the First Schedule to the Customs Tariff Act, 1975.
Effective Period: The exemptions will be applicable from 2nd April 2026 and will remain in force until 30th June 2026.

List of Goods Exempted from Customs Duty 

The notification specifies 40 items that will be exempted from customs duty during the effective period. These goods include chemicals, polymers, resins, and other industrial raw materials that are critical for various sectors such as manufacturing, pharmaceuticals, and petrochemicals. Below is a summary of the exempted goods:

Chemicals: Anhydrous ammonia, toluene, styrene, dichloromethane, vinyl chloride monomer, methanol, isopropyl alcohol, monoethylene glycol, phenol, acetic acid, vinyl acetate monomer, purified terephthalic acid, ethylenediamine, diethanolamine, and monoethanolamine.
Polymers: Polymers of ethylene, polypropylene, polystyrene, styrene-acrylonitrile (SAN), acrylonitrile-butadiene-styrene (ABS), polyvinyl chloride (PVC), polytetrafluoroethylene, poly (vinyl acetate), poly (vinyl alcohol), poly (methyl methacrylate), polyoxymethylene (POM-acetal), polyols, polyether ether ketone (PEEK), epoxy resins, polycarbonates, alkyd resins, poly (ethylene terephthalate) (PET) chips, unsaturated polyester resins, poly (butylene terephthalate), polyurethanes, and polyphenylene sulphide (PPS).
Rubber and Other Materials: Poly butadiene and styrene butadiene.
Formaldehyde Compounds: Formaldehyde, urea formaldehyde, melamine formaldehyde, and phenol formaldehyde.

Implications of the Notification

The exemption of customs duties on these goods is expected to have several positive impacts:

Cost Reduction: By eliminating customs duties, the cost of importing these essential goods will decrease, benefiting industries that rely on these materials for production.
Boost to Manufacturing: The exemption will provide a significant boost to the manufacturing sector, particularly industries such as chemicals, plastics, and textiles, which use these raw materials extensively.
Economic Growth: Lower input costs for industries can lead to increased production, job creation, and overall economic growth.
Encouragement for Innovation: The exemption on advanced materials like polyether ether ketone (PEEK) and polyphenylene sulphide (PPS) may encourage innovation in high-tech industries.

Duration of the Exemption 

It is important to note that this exemption is temporary and will only be applicable for a limited period, from 2nd April 2026 to 30th June 2026. Businesses and importers are advised to take advantage of this window to optimize their costs and plan their imports accordingly.

Conclusion

The Government of India’s Notification No. 12/2026–Customs is a welcome move for industries that depend on the import of essential raw materials. By exempting customs duties on these goods, the government aims to support economic growth, reduce production costs, and encourage industrial development. Businesses should ensure they are aware of the specific goods listed in the notification and the limited timeframe for availing these exemptions.

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

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