1.Duty Reductions & Reliefs
- Personal Imports: Tariff rate reduced from 20% to 10% for dutiable goods imported for personal use (Heading 9804);
- Healthcare: BCD exemption extended to 17 cancer drugs and medicines/food for 7 rare diseases;
- Green Energy: BCD exemption for capital goods used to manufacture Lithium-Ion cells (for EVs and Battery Energy Storage Systems);
- Solar Power: BCD exemption for odium antimonate imports used in manufacturing solar glass;
- Aviation: BCD exemptions for raw materials/parts used in manufacturing aircraft (civil & defence) and for MRO activities.
2.Duty Increases / Protections
- Umbrellas: Duty raised to 20% (or Rs. 60/piece, whichever is higher) to support MSMEs;
- Parts of umbrellas raised to 10%.
3.Trade Facilitation & Ease of Doing Business
- CAAR Rulings: Validity of Advance Rulings extended from 3 years to 5 years;
- Courier Exports: Value cap of Rs. 10 Lakh per consignment removed;
- Trusted Traders (AEO): Duty deferral period enhanced from 15 days to 30 days for Tier 2 and Tier 3 AEOs;
- Technology: Customs to roll out AI technology to scan containers in a phased manner;
- Automated Process: Filing of Bill of Entry by trusted importers will auto-notify Customs upon goods arrival.
4.Marine & Agriculture
- Fishing: Fish caught by Indian vessels in EEZ or High Seas are duty-free; landing at foreign port treated as export;
- Exports: Duty-free import limit for seafood processing inputs raised from 1% to 3% of prior year FOB exports.
5.Key Dates
- Most tariff rate changes effective from 02.02.2026;
- Simplified tariff structure effective from 01.05.2026.
For detailed discussion on above, please feel free to connect at devadhanntu@devadhanntu.in
