CBIC modifies Basic Customs Duty (BCD) on crude and refined edible oils

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Dated: 24.09.2026

CBIC modifies Basic Customs Duty (BCD) on crude and refined edible oils

The Ministry of Finance, Department of Revenue has issued Notification No. 31/2026-Customs dated 23 September 2026, further amending Notification No. 45/2025-Customs dated 24 October 2025. The latest notification reduces the applicable customs duty rates against six specified serial numbers in Table I of the principal notification, with the revised rates taking effect from 24 September 2026.

Six Customs Duty Rates Revised

Notification No. 31/2026-Customs makes targeted amendments to Table I of Notification No. 45/2025-Customs. The changes are as follows:

S. No. in Table I	Existing Rate	Revised Rate	Reduction
41	10%	5%	5 percentage points
42	32.5%	27.5%	5 percentage points
46	10%	5%	5 percentage points
47	32.5%	27.5%	5 percentage points
49	10%	Nil	10 percentage points
50	32.5%	22.5%	10 percentage points

The most significant changes are at S. Nos. 49 and 50. The rate against S. No. 49 has been reduced from 10% to Nil, while the rate against S. No. 50 has been reduced from 32.5% to 22.5%.

Statutory Authority for the Amendment

The Central Government has issued the notification by exercising its powers under Section 25(1) of the Customs Act, 1962, read with Section 3(12) of the Customs Tariff Act, 1975, after recording its satisfaction that the amendment is necessary in the public interest.
Section 25(1) empowers the Central Government, where it considers it necessary in the public interest, to grant exemption by notification from customs duties subject to the terms and conditions prescribed.

Amendment to Notification No. 45/2025-Customs

Importantly, Notification No. 31/2026-Customs is not a standalone exemption notification identifying the underlying goods afresh. It operates by modifying the rates appearing against specified serial numbers in Table I of Notification No. 45/2025-Customs.
The principal notification was issued on 24 October 2025 and was last amended through Notification No. 25/2026-Customs dated 8 July 2026 before the present amendment.
Therefore, importers and customs professionals should read Notification No. 31/2026-Customs together with the principal Notification No. 45/2025-Customs and its subsequent amendments to determine the exact goods, tariff headings, originating country or other conditions corresponding to S. Nos. 41, 42, 46, 47, 49 and 50.

Effective Date: 24 September 2026

Although the notification is dated 23 September 2026, the Government has expressly provided that the revised rates come into force on 24 September 2026.
This effective date is particularly relevant for importers and customs brokers while determining the applicable exemption rate for eligible imports.

Compliance Impact for Importers

The notification provides immediate duty relief for goods covered by the six affected entries. However, importers should not apply the reduced rates merely on the basis of the serial numbers mentioned in Notification No. 31/2026-Customs.
For claiming the revised benefit, businesses should verify the corresponding tariff item/HSN, description of goods, applicable country or origin criteria, conditions prescribed in Notification No. 45/2025-Customs, and the relevant date for determination of the applicable rate of duty.
Particular attention should be given to S. No. 49, where the notified rate has become Nil, since eligibility for a Nil rate remains dependent upon satisfaction of the conditions attached to the underlying entry, if any.

Key Takeaway

With Notification No. 31/2026-Customs, the Government has reduced the customs duty rates applicable to six entries under Table I of Notification No. 45/2025-Customs. Four entries receive a 5-percentage-point reduction, while two receive a 10-percentage-point reduction, including one entry where the applicable rate falls from 10% to Nil.

The revised rates become operational from 24 September 2026.

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

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