Budget 2026: Key Customs, Excise & GST Legislative and Duty Changes

The Central Board of Indirect Taxes & Customs (Central Board of Indirect Taxes & Customs) issued a detailed communication dated 1 February 2026 outlining the key budgetary changes introduced through the Finance Bill, 2026, covering Customs, Central Excise, and Goods and Services Tax. The letter informs field formations that multiple tariff and non-tariff notifications, circulars, and legislative amendments have been issued alongside the Finance Bill, with most duty rate changes becoming effective from 2 February 2026, while others take effect on enactment of the Bill, from 1 April 2026, 1 May 2026, or as specifically provided. A major theme is tariff rationalisation, with numerous Basic Customs Duty rates earlier given through exemption notifications now being incorporated into the First Schedule to the Customs Tariff Act from 1 May 2026, without altering effective duty rates. Several conditional and unconditional exemptions are reviewed: many are extended up to 31 March 2028, several are allowed to lapse on 31 March 2026, and redundant entries are omitted, while sunset clauses are either removed or newly prescribed in line with statutory requirements. The communication highlights selective rate changes, including withdrawal of certain concessional or nil duties, extension of benefits for exports, renewable energy, semiconductors, pharmaceuticals, medical devices, aircraft manufacturing and MRO, nuclear power, and electric mobility, and revised specific duties for certain consumer goods such as umbrellas. Significant amendments to the Customs Act, 1962 are proposed, including extending jurisdiction beyond territorial waters for fishing activities, defining Indian-flagged fishing vessels, simplifying warehouse transfers, clarifying advance ruling validity, and introducing special provisions for fishing beyond territorial waters. Customs rules are also updated by moving to monthly deferred duty payment, replacing the Baggage Rules, 2016 with new Baggage Rules, 2026, and consolidating baggage procedures into a single regulatory framework. On the Central Excise side, changes relate to National Calamity Contingent Duty on tobacco, valuation of blended CNG with biogas, and deferral of additional excise duty on unblended diesel. In GST, amendments are proposed to ease treatment of post-sale discounts, expand provisional refunds to inverted duty structures, remove refund thresholds for exports, strengthen the advance ruling appellate mechanism, and change the place-of-supply rule for intermediary services. The Board clarifies that the letter is only a highlight note, has no legal force in proceedings, and urges officers to guide taxpayers through outreach and provide prompt feedback on implementation issues.

Government of India
Ministry of Finance/Department of Revenue
Central Board of Indirect Taxes & Customs
Kartavya Bhawan-1, New Delhi-110001

D.O.F. No. 334/3/2026-TRU

New Delhi, the 1St February, 2026

Dear Principal Chief Commissioner/ Chief Commissioner/ Principal Director General/ Director General

The Finance Minister has introduced the Finance Bill, 2026 in Lok Sabha today, that is, ^1St February, 2026. Changes in Customs, Central Excise and Goods and Services Tax have been proposed through the Finance Bill, 2026. Further, the following notifications and circulars are also being issued:

Duty	Notification/Circular Nos.	Date of issuance
Tariff Notifications
Customs Duty	Notification No. 01/2026-Customs Notification No. 02/2026-Customs Notification No. 03/2026-Customs Notification No. 04/2026-Customs Notification No. 05/2026-Customs	1st February, 2026
Central Excise	Notification No. 01/2026-Central Excise Notification No. 02/2026-Central Excise Notification No. 03/2026-Central Excise	1st February, 2026
Non-Tariff Notifications
Customs	Notification No.12/2026-Customs (NT) Notification No.13/2026-Customs (NT) Notification No.14/2026-Customs (NT) Notification No.15/2026-Customs (NT)	1St February, 2026
Circulars
Customs	Circular No.02/2026-Customs Circular No.03/2026-Customs Circular No.04/2026-Customs	1st February, 2026

2. Unless otherwise stated, all changes in rates of duty will take effect from 2^nd February, 2026. A declaration has been made under the Provisional Collection of Taxes Act, 2023 in respect of Clause 136 (a) of the Finance Bill, 2026 and accordingly, changes proposed therein takes effect from the midnight of 1st February/ 2nd February, 2026. The remaining changes would come into effect on the enactment/assent of the Bill or from 1st April, 2026/ 1st May, 2026, or as specified in the Finance Bill.

3. Important changes in respect of Customs and Central Excise duty rates and legislative changes are briefly summarised in the five Annexures appended to this letter:

1) Annexure I: Chapter wise changes relating to customs tariff rates/ effective duties;

2) Annexure II: Review of conditional and unconditional exemptions, and other changes in notification;

3) Annexure III: Simplification of Tariff structure (Tarrifisation);

4) Annexure IV: Legislative changes in Customs Act, 1962, Customs Rules and Regulations, Central Excise duties;

5) Annexure V: Legislative changes in CGST/ IGST Act 2017.

4. This letter only summarizes the key highlights of the budgetary changes. It should not be used in any quasi-judicial or judicial proceedings. The relevant legal texts contained in the Finance Bill and notifications alone have legal force. We have taken every possible care in making the changes error free. However, inadvertent errors cannot be ruled out given the scale of the exercise. I shall be grateful if the provisions of the Finance Bill and notifications are studied carefully and feedback is provided urgently, including the issues that may need clarification.

5. It is requested that all possible efforts may be made to guide the taxpayers by holding interactive sessions/seminars for their benefit. In case of any doubt or difficulty, I would request you to kindly bring it to my notice immediately at js-tru01qov.in or to the notice of Dr. Puneeta Bedi, Director (TRU) (Tel: 011-2401 2716, email: maliabedi.83@gov.in), Amreeta Titus, Director (TRU) (Tel: 011-2401 2714, email: amreeta.titus(&,qov.in), Mr. Ananya Kumar Singh, Budget Officer (TRU) (Tel: 011-2401 2682, email: ananva.nliuqov.in ). We can also be reached at budget-cbec(&mic.in.

6. Copies of Finance Bill, 2026, Finance Minister’s Budget Speech, Explanatory Memorandum to the Bill and relevant notifications can be downloaded directly from indiabudget.gov.in as well as www.cbic.gov.in.

7. To conclude, my team and I would like to express our gratitude to you for the valuable suggestions, feedback and support and would look forward to your comments/suggestions.

With warm regards,

Yours Sincerely,

(Jainendra Singh Kandhari)
Joint Secretary (TRU-I)

To,

All Principal Chief Commissioners/ Principal Directors General,
All Chief Commissioners/ Director Generals,
All Principal Commissioners,
All Commissioners,
Director DPPR/ Logistics/ Legal Affairs/ Data Management

Annexure I

CUSTOMS

Note:

(a) “Basic Customs Duty (BCD)” means the customs duty levied under the Customs Act, 1962.

(b) “Agriculture Infrastructure and Development Cess (AIDC)” means a duty of customs that is levied under Section 124 of the Finance Act, 2021.

(c) “Social Welfare Surcharge (SWS)” means a duty of customs that is levied under Section 110 of the Finance Act, 2018.

(d) “First Schedule” means the First Schedule to the Customs Tariff Act, 1975.

I. DUTY RATE CHANGES

Chapter 1

(1) Vide S. No. 1 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, Nil BCD was prescribed on Animals and birds imported by zoo falling under this chapter. On review, this entry is being omitted with effect from (w.e.f.) 2nd February, 2026. [S. No. I (1) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will attract a BCD rate of 30% w.e.f. 2nd February 2026.

Chapter 2

(1) The applicable BCD rate on Meat and edible offal of turkeys, frozen, falling under this chapter, which hitherto was prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1st May, 2026 [S. No. I (2) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 1 of Table 1 in Annexure III.

Chapter 3

(1) The value limit of duty-free imports of specified goods imported for use in processing of sea food products for export is being increased from 1% to 3% of the FOB value of seafood products exported during the preceding financial year w.e.f. 2nd February, 2026. This exemption is being extended till 31^st March, 2028. Condition No. 5 against S. No. 69 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025 is being amended accordingly [S. Nos. I (27) and II (a) of notification No. 02/2026-Customs dated 1^st February, 2026 refers].

(2) The applicable BCD rates on Frozen krill and Artemia falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 are being incorporated in the First Schedule w.e.f. 1^st May, 2026. Accordingly, relevant exemption entries shall be omitted w.e.f. 1^st May, 2026 [S. Nos. I (4) and I (5) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. Nos. 1 of Table 2 in Annexure III and S.No. 2 of Table I in Annexure III.

Chapter 4: No Change

Chapter 5

(1) The applicable BCD rate on Artemia cysts, falling under this chapter, which hitherto was prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026 [S. No. I (7) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026. There is no change in the applicable rate of duty. For details, please refer to S. No. 3 of Table I in Annexure III.

Chapter 6-7: No Change

Chapter 8

(1) The applicable BCD rates on Almonds (in shell), Almonds (shelled), Walnuts (in shell), Pecan nuts, Cranberries and Blueberries (fresh, frozen and dried) falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 are being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entries shall be omitted w.e.f. 1st May, 2026 [S. Nos. I (9) to I (15) of notification No. 02/2026-Customs dated 1st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. Nos. 4 to 6 of Table 1 and 2-8 of Table 2 in Annexure III.

Chapter 9-11: No Change

Chapter 12

(1) The applicable BCD rates on “Seeds, fruit and spores, of a kind used for sowing”, and shea nuts falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 are being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entries shall be omitted w.e.f. 1^st May, 2026 [S. Nos. I (16), I (17) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 7 of Table 1 and S. No. 9 of Table 2 in Annexure III.

Chapter 13:

Tariff item 1302 19 19 to 1302 19 30 and their entries are being substituted to create nineteen new tariff items w.e.f. 1^st May, 2026. [Clause 136(c)(i) read with Fourth Schedule of the Finance Bill, 2026, refers]

Chapter 14: No Change

Chapter 15

(1) The applicable BCD rate on Wool grease and fatty substances derived therefrom (including lanolin), falling under this chapter, which hitherto was prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026 [S. No. I (18) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. Nos. 8 of Table I in Annexure III.

Chapter 16-19: No Change

Chapter 20

(1) The applicable BCD rate on Makhana, other roasted nuts and seeds, other nuts (otherwise prepared or preserved), and cranberries and blueberries (otherwise prepared or preserved), falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 are being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entries shall be omitted w.e.f. 1^st May, 2026 [S. Nos. I (21-24) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 9-10 of Table 1 and S. No. 10-11 of Table 2 in Annexure III.

Chapter 21

(1) The applicable BCD rate on All goods, other than specified compound alcoholic preparations, falling under sub-heading 2106 90, which hitherto was prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026 [S. Nos. I (25) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 12 of Table 2 in Annexure III. Consequential amendments are also being made to the SWS exemption notification to carry out above changes [Sl. No. 1 of notification No. 03/2026-Customs refers].

Chapter 22

(1) The applicable BCD rate on Cranberry products, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. 1^st May, 2026. Accordingly, relevant exemption entry shall be omitted w.e.f. 1^st May, 2026 [S. No. I (26) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 13 of Table 2 in Annexure III.

Chapter 23

(1) Vide notification No. 113/2003-Customs dated 22^nd July, 2003, BCD was exempted on castor oil cake and castor de-oiled cake manufactured from indigenous castor oil seeds on indigenous plant and machinery by a unit in SEZ and brought to DTA. On review, this notification is being allowed to lapse w.e.f. 1^st April, 2026. Consequently, these goods will attract BCD rate of 15% w.e.f. 1^st April, 2026.

(2) The applicable BCD rate on Prawn and shrimps feed, falling under this chapter, which hitherto was prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026 [S. No. I (28) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 11 of Table

1 in Annexure III.

Chapter 24: No Change

Chapter 25

(1) The applicable BCD rate on Acid grade fluorspar, falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026 [S. No.

I (29) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 14 of Table

2 in Annexure III.

(2) The applicable BCD rates on Natural graphite, Natural sands of all kinds (other than metal bearing sands), Quartz and quartzite, and Strontium sulphate (natural ore) falling under this chapter, which hitherto were prescribed through notification No. 36/2024-Customs dated 23^rd July, 2024 are being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entries shall be omitted w.e.f. 1^st May, 2026. [S. No. 6 of notification No. 01/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. Nos.12-15 of Table 1 in Annexure III. Consequential amendments are also being made to the SWS exemption notification to carry out above changes [S. No. 1 of notification No. 03/2026-Customs refers].

Chapter 26

(1) BCD rate on Monazite, falling under tariff item 2612 20 00, is being decreased from 2.5% to Nil vide insertion of S. No. 84A in TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025 [S. No. I (31) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. This change is being made effective from 2nd February, 2026.

(2) The applicable BCD rate on Hafnium ores and concentrates, falling under this chapter, which hitherto was prescribed through notification No. 36/2024-Customs dated 23^rd July, 2024, is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026. [S. No. 6 of notification No. 01/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S.No. 15 of Table II in Annexure III.

Chapter 27

(1) Vide No. 93 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, Nil BCD is prescribed on Naphtha, for use in the manufacture of fertilizers, falling under heading 2710. On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (35) of notification No. 02/2026-Customs dated 1st February, 2026 refers]. Consequently, these goods will now attract applicable BCD rate w.e.f. 1^st April, 2026.

(2) Vide No. 95 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, Nil BCD is prescribed on Liquefied Petroleum Gases (LPG), in excess of the quantity of petroleum gases and other gaseous hydrocarbons consumed in the manufacture of polyisobutylene by the unit located in Domestic Tariff Area (DTA), received from the unit located in Special Economic Zone (SEZ) and returned by the DTA unit to the SEZ unit from where such Liquefied petroleum gases (LPG) were received, falling under heading 2711. On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. 36 of notification No. 02/2026-Customs dated 1st February, 2026 refers]. Consequently, these goods will now attract applicable BCD rate w.e.f. 1^st April, 2026.

(3) The applicable BCD rates on Coal, briquettes, ovoids, etc. and petroleum crude, falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 are being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entries shall be omitted w.e.f. 1^st May, 2026 [S. No. I (33-34) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. Nos. 16-17 of Table 1 in Annexure III.

Chapter 28

(1) BCD rate on Potassium hydroxide, falling under tariff item 2815 20 00, is being increased from Nil to 7.5%, vide omission of S. No. 21 of notification No. 36/2024-Customs dated 23^rd July, 2024 [S. No. 6 of notification No. 01/2026-Customs dated 1st February, 2026 refers]. This change will come into effect from 2^nd February, 2026.

(2) BCD rate on Sodium antimonate, falling under tariff item 2841 90 00, for use in manufacture of solar glass is being decreased from 7.5% to Nil vide insertion of S. No. 110A in TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025 [S. No. I (42) of notification No. 02/2026-Customs, dated 1^st February, 2026 refers]. This change is being made effective from 2^nd February, 2026.

(3) The BCD exemption on Salts of oxometallic or peroxometallic acids of Beryllium and Rhenium, falling under tariff item 2841 90 00, and compounds, inorganic or organic of rare earth metals falling under heading 2846, which hitherto were prescribed through notifications No. 36/2024-Customs dated 23^rd July, 2024, is now being prescribed through the consolidated notification No. 45/2025-Customs dated 24^th October 2025 vide insertion of S. No. 110B and 111A in TABLE I, w.e.f. 2nd February, 2026 [S.No. I (42) and I (44) of notification No. 02/2026-Customs refers]. Accordingly, the relevant exemption entries in notification No. 36/2024-Customs shall be omitted w.e.f. 2^nd February, 2026 [S.No. 6 of notification No. 01/2026-Customs refers]. There is no change in the applicable rate of duty.

(4) Vide No. 107 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, Nil BCD is prescribed on Silicon in all forms for the manufacture of un-diffused silicon wafers; and un-diffused silicon wafers for the manufacture of solar cells or solar cell modules, falling under Chapter 28 or 38. On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (39) of notification No. 02/2026-Customs dated 1^st February, 2026 refers].

(5) The applicable BCD rate on Phosphoric acid and Ammonium metavanadate, falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 are being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entries shall be omitted w.e.f. 1^st May, 2026. [S. No. I (40-41) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty.

(6) The applicable BCD rates on Tellurium, Silicon, Silicon dioxide, Selenium, Rare-earth metals and other critical minerals falling under this chapter, which hitherto were prescribed through notification No. 36/2024-Customs dated 23^rd July, 2024, are being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entries shall be omitted w.e.f. 1^st May, 2026. [S. No. I (21-22) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. Consequential amendments are also being made to the SWS exemption notification to carry out above changes [Sl. No. 1 of notification No. 03/2026-Customs refers].

(For details of (5) and (6) above, please refer to S. Nos. 18-40 of Table 1 and S. No. 16 Table 2 in Annexure III.)

Chapter 29

(1) Vide No. 113 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 5% was prescribed on Alpha pinene falling under this chapter. On review, this entry is being omitted w.e.f. 2^nd February, 2026. [S. No. I (46) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will attract applicable rate of BCD w.e.f. 2^nd February, 2026.

(2) Vide No. 117 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, Nil BCD is prescribed on Maltol, for use in the manufacture of deferiprone, falling under this chapter. On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (50) of notification No. 02/2026-Customs dated 1st February, 2026 refers]. Consequently, these goods will now attract applicable BCD rate w.e.f. 1^st April, 2026.

(3) Vide No. 134 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of Nil is prescribed on “Goods specified in List 8 appended to TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025 for use in the manufacture of EVA (Ethylene Vinyl Acetate) sheets or backsheet, which are used in the manufacture of solar photovoltaic cells or modules”. On review, this entry is being modified. The exemption now applies to ‘Goods specified in List 8 appended to TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025 for use in the manufacture of sheets/encapsulants of EVA (Ethylene Vinyl Acetate), PoE (Polyolefin Elastomer) or combinations thereof or backsheet, which are used in the manufacture of solar photovoltaic cells or modules ’ falling under CTH 2915, 2933, 3208, 3506, 3815 , 3901 or 3920 [S. No. I (57) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. This change is being made effective from 2nd February, 2026.

(4) The applicable BCD rate on Methyloxirane (propylene oxide), Gibberellic acid (heading 2932), Triethyl orthoformate, Diethyl malonate, DL-2 Aminobutanol, Aceto butyrolactone, Artemisinin and Thymidine falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 are being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entries shall be omitted w.e.f. 1^st May, 2026. [S. No. I (48,49,51) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 41 of Table 1 and S.Nos. 17-23 of Table 2 in Annexure III.

(5) The applicable BCD rate on Bismuth citrate falling under this chapter, which hitherto were prescribed through notification No. 36/2024-Customs dated 23^rd July, 2024 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026. [ No. 6 of notification No. 01/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 42 of Table 1 in Annexure III.

(6) In headings 2915, 2916, 2917, 2918, 2922, 2924, 2927, 2932, 2933, 2934 and 2939, various tariff items and their entries are being substituted to create thirty-six new tariff items along with 2 amendments w.e.f. 1st May, 2026. [Clause 136(c)(i) read with the Fourth Schedule of the Finance Bill, 2026, refers]

Chapter 30

(1) Exemption from BCD is being extended to 17 new drugs/medicines (as detailed below) by adding them to List 3 appended to TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025 [S. No. III (a) of notification No. 02/2026-Customs dated 1^st February, 2026 refers].

• • Ribociclib
  • Abemaciclib
  • Talycabtagene autoleucel
  • Tremelimumab
  • Venetoclax
  • Ceritinib
  • Brigatinib
  • Darolutamide
  • Toripalimab
  • Serplulimab
  • Tislelizumab
  • Inotuzumab ozogamicin
  • Ponatinib
  •  Ibrutinib
  • Dabrafenib
  • Trametinib
  • Ipilimumab

This change will come into effect form 2^nd February, 2026.

(2) Seven rare diseases (as detailed below) that are part of National Policy for Rare Diseases (NPRD) 2021 are being added to List 22 appended to TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025 for extending customs duty exemption on drugs, medicines and food for special medical purposes when imported for personal use.

• • Congenital Hyperinsulinemic Hypoglycemia (CHI)
  • Familial Homozygous Hypercholestrolemia
  • Alpha Mannosidosis
  • Primary Hyperoxaluria
  • Cystinosis
  • Hereditary Angioedema
  • Primary Immune Deficiency Disorders

This change will come into effect form 2^nd February, 2026. [S. No. III (b) of notification No. 02/2026-Customs dated 1^st February, 2026 refers].

(3) Vide S. No. 123 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 5% was prescribed on Artificial plasma falling under this chapter. On review, this entry is being omitted w.e.f. 2^nd February, 2026. [S. No. I (53) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will attract applicable rate of BCD through the First Schedule.

Chapter 31

(1) Vide No. 128 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 5% was prescribed on Ammonium phosphate or ammonium nitro-phosphate, for use as manure or for the production of complex fertilisers falling under this chapter. On review, this entry is being omitted w.e.f. 2^nd February, 2026. [S. No. I (55) of notification No. 02/2026-Customs dated 1st February, 2026 refers]. Consequently, these goods will attract applicable rate of BCD through the First Schedule.

(2) No. 132 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025 is being omitted w.ef. 2^nd February, 2026, being redundant [S. No. I (56) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. The applicable BCD rate on Potassium sulphate, containing not more than 52% by weight of potassium oxide, falling under tariff item 3104 30 00, hitherto prescribed through this notification/ S.No. 132, shall continue vide the First Schedule.

(3) The applicable BCD rate on Ammonium nitrate, whether or not in aqueous solution, falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026 [S. No. I (54) of notification No. 02/2026-Customs dated 1st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. Nos. 43 of Table 1 in Annexure III.

Chapter 32: No Change

Chapter 33

(1) The applicable BCD rate on Mixtures of odoriferous substances of a kind used in food or drink industries other than specified compound alcoholic preparations, falling under this chapter, which hitherto was prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026 [S. No. I (58) of notification No. 02/2026-Customs dated 1st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 24 of Table 2 in Annexure III.

Chapter 34-37: No Change

Chapter 38

(1) No. 137 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025 is being omitted w.e.f. 2^nd February, 2026, being redundant [S. No. I (59) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. The applicable BCD rate on Other diagnostic or laboratory reagents, falling under tariff item 3822 90 90, hitherto prescribed through this notification/S.No. 137, shall continue vide the First Schedule.

(2) Vide No. 236 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 5% is prescribed on Zeolite for use in the manufacture of washcoat for catalytic converters, falling under tariff item 3824 99 00. On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (123) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract applicable BCD rate w.e.f. 1^st April, 2026.

(3) The applicable BCD rates on Gibberellic acid (heading 3808), falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1st May, 2026 [S. No. I (48) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 45 of Table 1 in Annexure III.

(4) The applicable BCD rates on Artificial graphite, colloidal or semi-colloidal graphite, preparations based on graphite or other carbon in form of pastes, blocks, plates or other semi-manufactures falling under this chapter, which hitherto were prescribed through notification No. 36/2024-Customs dated 23^rd July, 2024, is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026 [S. No. 6 of notification No. 01/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 44 of Table 1 in Annexure III. Consequential amendments are also being made to the SWS exemption notification to carry out above changes [S. No. 1 of notification No. 03/2026-Customs refers].

Chapter 39

(1) No. 139 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025 is being omitted w.e f. 2^nd February, 2026, being redundant [S. No. I (61) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. The applicable BCD rate on Ethylene Vinyl Acetate (EVA), hitherto prescribed through this notification/S.No. 139, shall continue vide the First Schedule.

(2) Vide No. 145 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, Nil BCD is prescribed on Specified goods imported for the manufacture of Copper-T contraceptives, falling under Chapter 39 or 74. On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (67) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract applicable BCD rate w.e.f. 1^st April, 2026.

(3) The applicable BCD rate on Polymers of vinyl chloride or of other halogenated olefins, in primary forms, falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026. [S. No. I (69) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 46 of Table 1 in Annexure III.

(4) Tariff item 3923 29 90 and the entries relating thereto are being substituted to create new tariff item for “Biodegradable” w.e.f. 1^st May, 2026. [Clause 136(c)(i) read with the Fourth Schedule of the Finance Bill, 2026 refers]

Chapter 40

(1) Vide No. 154 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 7.5% is prescribed on Ethylene-Propylene-Non-Conjugated Diene Rubber (EPDM) under tariff item 4002 70 00 for use in the manufacture of insulated wires and cables falling under heading 8544 (except sub­heading 8544 11). On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (72) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract BCD rate of 10% w.e.f. 1^st April, 2026.

(2) No. 157 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025 is being omitted w.e.f. 2^nd February, 2026, being redundant [S. No. 75 of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. The applicable BCD rate on New pneumatic tyres of rubber or a kind used on aircraft, falling under tariff item 4011 30 00, hitherto prescribed through S.No. 157 of the notification, shall continue vide the First Schedule. Sl. No. 13A of notification No. 11/2021-Customs (AIDC) is also being modified to omit the reference to above S.No. 157. These goods (excluding those otherwise exempted) will continue to attract BCD at the rate of 2.5% and AIDC at the rate of 0.5%.

Chapter 41

(1) The applicable BCD rate on Wet blue leather (hides and skins), falling under this chapter, which hitherto was prescribed through notification No. 45/2025-Customs dated 24^th October 2025, is being incorporated in the First Schedule w.e.f. from 1st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026 [S. No. I (76) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 25 of Table 2 in Annexure III .

Chapter 42-46: No Change

Chapter 47

(1) The applicable BCD rate on Rayon grade wood pulp, falling under this chapter, which hitherto was prescribed through notification No. 45/2025-Customs dated 24^th October 2025, is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026 [S. No. I (78) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 26 of Table 2 in Annexure III.

Chapter 48

(1) The applicable BCD rate on Other goods, excluding kites, falling under tariff item 4823 90 90, which hitherto was prescribed through notification No. 45/2025-Customs dated 24^th October 2025, is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1st May, 2026 [S. No. I (82) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 27 of Table 2 in Annexure III.

Chapter 49

(1) The applicable BCD rate on Plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, being originals drawn by hand; hand-written texts; photographic reproductions on sensitised paper and carbon copies of the foregoing, falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026 [S. No. I (83) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No 47 of Table 1 in Annexure III.

Chapter 50-51: No Change

Chapter 52:

(1) The applicable BCD rate on Other cotton of staple length exceeding 32.0 mm, falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026. [S. No. I (84) of notification No. 02/2026-Customs dated 1st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 48 of Table 1 in Annexure III.

Chapter 53-55: No Change

Chapter 56:

(1) Vide S. No. 172 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 5% is prescribed on Hydrophilic and hydrophobic non- woven, imported for use in the manufacture of adult diapers under tariff items 5603 11 10, 5603 11 90. On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (85) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract the applicable rate of BCD vide the First Schedule with effect from 1^st April, 2026.

Chapter 57-65: No Change

Chapter 66:

(1) The BCD on umbrellas (other than garden umbrellas) classified under tariff items 6601 91 00 and 6601 99 00 is being revised from 20% to “20% or Rs. 60 per piece, whichever is higher”. [Clause 136(a) read with the Second Schedule of the Finance Bill, 2026, refers]. By virtue of declaration under the Provisional Collection of Taxes Act, 2023, the revised duty rate will come into force with effect from the midnight of 1^st February / 2^nd February, 2026. [Clause 136(a) read with Second Schedule of the Finance Bill, 2026, refers.]

(2) The BCD on parts and components of umbrellas classified under tariff items 6603 20 00, 6603 90 10 and 6603 90 90 is also being revised from 10% to “10% or Rs. 25 per kg, whichever is higher” [Clause 136(a) read with Second Schedule of the Finance Bill 2026 refers]. By virtue of declaration under the Provisional Collection of Taxes Act, 2023, the revised duty rate will come into force with effect from the midnight of 1^st February / 2^nd February, 2026. [Clause 136(a), read with Second Schedule of the Finance Bill, 2026, refers.]

Chapter 67-70: No Change

Chapter 71

(1) Vide S. No. 201 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 5% is prescribed on spent catalyst or ash containing precious metals falling under heading 7112. On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (95) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract applicable BCD rate w.e.f. 1^st April, 2026 (these goods are also covered under S. No. 202 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025 whereby effective BCD rate of 5% has been prescribed). Consequential amendments are also being made to SWS exemption notification No. 11/2018-Customs.

Chapter 72

(1) The applicable BCD rate on Ferro-nickel, falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026 [S. No. I (96) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 49 of Table 1 in Annexure III

(2) Vide No. 213 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 5% was prescribed on INVAR falling under heading 7229. On review, this entry is being omitted w.e.f. 2^nd February, 2026. [S. No. I (100) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will attract a BCD rate of 7.5% w.e.f. 2^nd February 2026.

Chapter 73

(1) No. 217 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025 is being omitted w.e.f. 2^nd February, 2026, being redundant [S. No. I (102) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. The applicable BCD rate on Other screws and bolts, nuts and other non-threaded articles falling under tariff items 7318 15 00, 7318 16 00, 7318 29 90, hitherto prescribed through this notification /S.No. 217, shall continue vide the First Schedule.

(2) Vide No. 218 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 7.5% is prescribed on Metal parts (covered under CTH 7325) for use in the manufacture of electrical insulators falling under tariff heading 8546. On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (103) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract BCD rate of 15% with effect from 1^st April, 2026.

(3) Vide No. 219 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 7.5% is prescribed on Pipes and tubes (covered under Chapter 73) for use in manufacture of boilers. On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (104) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract applicable rate of BCD with effect from 1^st April, 2026.

(4) Vide No. 220 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 5% is prescribed to Forged metal rings for manufacture of special bearings for use in wind operated electricity generators subject to certain conditions. On review, this entry is being merged with S. No. 230 of notification No. 45/2025-Customs dated 24^th October, 2025 with effect from 2nd February, 2026. S. No. 230 provides a concessional BCD rate of 5% to parts and sub­parts for manufacture/maintenance of wind operated electricity generators. [S. No. I (105) and I (117) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. These changes are being made effective from 2^nd February, 2026.

(5) In headings 7305 and 7306, various tariff items and their entries are being substituted to create twenty-eight new tariff items w.e.f. 1^st May, 2026. [Clause 136(c)(i) read with Fourth Schedule of the Finance Bill, 2026, refers]

Chapter 74

(1) The applicable BCD rate on Blister copper, falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026. [S. No. I (106) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 50 of Table 1 in Annexure III.

(2) Vide No. 222 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of Nil is prescribed to “Copper wires or refined copper of which the maximum cross-sectional dimension exceeds 6mm for the manufacture of photovoltaic ribbon or tinned copper interconnect or cell interconnect or string interconnect or the photovoltaic connect or solar ribbon for the manufacture of solar photovoltaic cell or modules”. On review, the entry is being modified to enhance its scope, and will read as below:

“Copper wire of refined copper of which the maximum cross-sectional dimension exceeds 6mm or copper rods of refined copper, for the manufacture of photovoltaic ribbon or tinned copper interconnect or cell interconnect or string interconnect or the photovoltaic connect or photovoltaic ribbon or solar ribbon for manufacture of solar photovoltaic cell or modules” falling under HS 7407 and 7408 [S. No. I (107) of notification No. 02/2026-Customs dated 1^st February, 2026 refers].

This change is being made effective from 2^nd February, 2026.

Chapter 75-77: No Change

Chapter 78:

(1) The applicable BCD rate on Lead waste and scrap, falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October 2025, is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026. [S. No.

I (108) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 51 of Table

1 in Annexure III.

Chapter 79:

(1) The applicable BCD rate on Zinc waste and scrap, falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October 2025, is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026. [S. No.

I (109) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 52 of Table

2 in Annexure III.

Chapter 80: No Change

Chapter 81:

(1) The applicable BCD rate on Cobalt powders, and Tungsten (wolfram) bars and rods, falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026. [S. No. I (111) of notification No. 02/2026-Customs dated 1st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. Nos. 53 of Table 1 and 28 of Table 2 in Annexure III.

(2) The BCD exemption on Unwrought, waste and scarp and powders of Gallium, Germanium, Indium, Niobium and Vanadium, falling under tariff item 8112 92 00, which hitherto were prescribed through notifications No. 36/2024-Customs dated 23^rd July, 2024, is now being prescribed through the consolidated notification No. 45/2025-Customs dated 24^th October 2025 vide insertion of S. No. 226A in TABLE I [S. No. I (112) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Accordingly, the relevant exemption entry in notification No. 36/2024-Customs hall be omitted w.e.f. 2^nd February, 2026 [S. No. 6 of notification No.01/2026-Customs dated 1st February, 2026 refers].

Chapter 82-83: No Change

Chapter 84:

(1) BCD rate on all goods falling under tariff item 8401 30 00 [Fuel elements (cartridges), non-irradiated] for generation of nuclear power is being decreased from 7.5% to Nil vide insertion of S. No. 227A in TABLE I of notification No. 45/2025-Customs [S. No. I (114) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. This change is being made effective from 2^nd February, 2026.

(2) BCD rate on Control and Protection Absorber Rods & Burnable Absorber Rods falling under tariff item 8401 40 00 for generation of nuclear power is being decreased from 7.5% to Nil vide insertion of S. No. 227B in TABLE I of notification No. 45/2025-Customs [S. No. I (114) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. This change is being made effective from 2^nd February, 2026.

(3) No. 69A of notification No. 25/2002 dated 1^st March, 2002 is being modified to extend BCD exemption on Capital goods for use in the manufacturing of Lithium-Ion Cells for batteries of Electrically Operated Vehicles, to cover batteries of Battery Energy Storage Systems (BESS) [S. No. 5 of notification No. 01/2026-Customs dated 1st February, 2026 refers]. This change is being made effective from 2^nd February, 2026.

(4) Vide No. 231 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 5% is prescribed on Permanent magnets for manufacture of PM synchronous generators above 500KW for use in wind operated electricity generator (covered under 84 or any other Chapter). On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (118) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract applicable rate of BCD with effect from 1^st April, 2026.

(5) Vide No. 243 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 5% is prescribed on High-speed cold-set and High-speed Heat-set web offset printing machines with a minimum speed of 70,000 copies per hour, along with mail room equipment (covered under 84 or any other Chapter). On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (127) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract applicable rate of BCD with effect from 1st April, 2026.

(6) Vide No. 258 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 7.5% was prescribed on Coffee roasting, brewing or vending machines for use in the manufacture or processing of coffee falling under this chapter. On review, this entry is being omitted w.e.f. 2^nd February, 2026. [S. No. I (133) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will attract applicable rate of BCD through the First Schedule.

(7) Vide No. 271 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of Nil is prescribed on Cash dispenser or automatic banknote dispenser and its parts (covered under tariff sub-heading 8472 90 and 8473 40). On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (139) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract applicable rate of BCD with effect from 1st April, 2026.

(8) The applicable BCD rate on Reactors, column or towers, or chemical storage tanks, All goods under tariff item 8415 90 00 other than indoor or outdoor units of split-system air conditions, and All goods under tariff item 8421 99 00 other than Reverse Osmosis (RO) membrane element for household type filters, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, are being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entries shall be omitted w.e.f. 1^st May, 2026. S. No. I (130, 132 and 134) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. Nos. 54 of Table 1 and 29-30 of Table 2 in Annexure III.

Chapter 85

(1) BCD on specified goods falling under tariff items 8501 10 20, 8504 31 00, 8516 80 00 and 8516 90 00 for use in the manufacture of Microwave Ovens under tariff item 8516 50 00 is being exempted vide insertion of S. No. 278A in TABLE I of notification No. 45/2025-Customs [S. No. I (146) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. This change is being made effective from 2nd February, 2026.

(2) Vide No. 275 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of Nil is prescribed on Television equipment, cameras and other equipment for taking films, imported by a foreign film unit or television team (covered under 85 or any other Chapter). On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (143) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract applicable rate of BCD with effect from 1^st April, 2026.

(3) Vide No. 276 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of Nil is prescribed on Photographic, filming, sound recording and radio equipment, raw films, video tapes and sound recording tapes, if imported into India after having been exported therefrom (covered under 85 or any other Chapter). On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (144) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract applicable rate of BCD with effect from 1^st April, 2026.

(4) Vide No. 285 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 5% was prescribed on Parts of Radio Trunking terminals falling under this chapter. On review, this entry is being omitted w.e.f. 2^nd February, 2026. [S. No. I (149) of notification No. 02/2026-Customs dated 1st February, 2026 refers]. Consequently, these goods will attract a BCD rate of 15% w.e.f. 2^nd February 2026.

(5) Vide No. 287 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, Nil BCD was prescribed on CD-ROMs containing books of an educational nature, journals, periodicals (magazines) or newspapers falling under this chapter. On review, this entry is being omitted w.e.f. 2^nd February, 2026. [S. No. I (150) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will attract a BCD rate of 10% w.e.f. 2^nd February 2026.

(6) Vide No. 291 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of Nil is prescribed on Parts and Components of Digital Still Image Video Cameras (covered under 85 or any other Chapter). On review, this entry is being allowed to lapse [S. No. I (151) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract applicable rate of BCD with effect from 1^st April, 2026.

(7) Vide No. 309 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 5% is prescribed on Raw materials or parts for use in manufacture of e-Readers (covered under any other Chapter). On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (162) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract applicable rate of BCD with effect from 1^st April, 2026.

(8) Vide No. 1 of TABLE IV of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate is prescribed on Motion pictures, music, gaming software for use on gaming consoles printed or recorded on media (covered under chapter heading 3706 or 8523). On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. VII of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract applicable rate of BCD with effect from 1^st April, 2026.

(9) The applicable BCD rates on Battery Separators and Parts suitable for use solely or principally with the apparatus of headings 8525, 8526 or 8527, falling under this chapter, which hitherto were prescribed through notification No. 45/2025-Customs dated 24^th October, 2025 are being incorporated in the First Schedule w.e.f. from 1st May, 2026. Accordingly, the relevant exemption entries shall be omitted w.e.f. 1^st May, 2026 [S. No. I (148 and 159) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. Nos. 31-32 of Table 2 in Annexure III

Chapter 86

(1) Vide No. 310 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 5% was prescribed on Loco simulators falling under this chapter. On review, this entry is being omitted w.e.f. 2^nd February, 2026. [S. No. I (163) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will attract applicable rate of BCD through the First Schedule.

(2) The applicable BCD rates on Refrigerated containers, falling under this chapter, which hitherto was prescribed through notification No. 45/2025-Customs dated 24^th October, is being incorporated in the First Schedule w.e.f. from 1^st May, 2026. Accordingly, the relevant exemption entry shall be omitted w.e.f. 1^st May, 2026 [S. No. I (164) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. There is no change in the applicable rate of duty. For details, please refer to S. No. 33 of Table 2 in Annexure III

Chapter 87: No Change

Chapter 88

(1) BCD is being exempted on raw materials for manufacture of parts of aircraft for maintenance, repair, or overhauling of aircraft or components or parts of aircraft, including engines (provided that the goods are imported by Public Sector Units under the Ministry of Defence), vide insertion of S. No. 334A in TABLE I of notification No. 45/2025-Customs [S. No. I (171) of notification No. 02/2026-Customs dated 1st February, 2026 refers]. This exemption is subject to conditions prescribed therein. This change is being made effective from 2^nd February, 2026.

(2) BCD is being exempted on components or parts, including engines, of aircraft, for the manufacture of aircraft and parts of such aircraft, vide insertion of S. No. 335A in TABLE I of notification No. 45/2025-Customs [S. No. I (173) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. This exemption is subject to conditions prescribed therein. This change is being made effective from 2^nd February, 2026.

(3) Circular No. 02/2026-Customs dated 1^st February, 2026 is being issued to clarify the term “RPA (Remote Pilot Aircraft)” mentioned in S. No. 59 of TABLE II of notification No. 45/2025-Customs dated 24.10.2025.

Chapter 89: No Change

Chapter 90

(1) Vide S. No. 370 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 7.5% is prescribed on X-Ray tubes for manufacture of X-Ray Machines for medical, surgical or veterinary use. On review, this entry is being allowed to lapse on 31^st March, 2026 [S. No. I (188) of notification No. 02/2026-Customs dated 1^st February, 2026 refers]. Consequently, these goods will now attract BCD rate of 10% with effect from 1^st April, 2026.

(2) Vide S. No. 372 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 7.5% is prescribed on Flat panel detector for use in manufacture of X-Ray machine. On review, this entry is being allowed to lapse on 31^st March, 2026. [S. No. I (189) of notification No. 02/2026-Customs dated 1st February, 2026 refers]. Consequently, these goods will now attract BCD rate of 10% with effect from 1^st April, 2026.

Chapter 91-94: No Change

Chapter 95

(1) Vide No. 397 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, concessional BCD rate of 5% is prescribed on Parts of video games for the manufacture of video games. On review, this entry is being allowed to lapse on 31^st March, 2026. [S. No. I (199) of notification No. 02/2026-Customs dated 1st February, 2026 refers]. Consequently, these goods will now attract BCD rate of 20% with effect from 1^st April, 2026.

(2) Parts of electronic toys for manufacture of electronic toys under S.No. 396 of TABLE I in notification No. 45/2025-Customs are being exempted from SWS with effect from 2^nd February, 2026. Henceforth, all goods under heading 9503 will be exempt from the levy of SWS.

Chapter 96-97: No Change

Chapter 98:

(1) The exemption under S. No. 66 of TABLE II in notification No. 45/2025-Customs has been modified to cover goods required for setting up of specified Nuclear Power Project, irrespective of their capacity, as certified by an officer not below the rank of a Joint Secretary to the Government of India in the Department of Atomic Energy. Further, the validity of this exemption is being extended from 30^th September, 2027 to 30^th September, 2035. The eligibility of contracts covered under the scope of this exemption is also being extended to all contracts registered with the Customs Houses concerned on or before 30^th September, 2035. This change is being made effective from 2^nd February, 2026 [ S.No. IV(c), V, VI(a) notification No.02/2026 -Customs, dated 1st February, 2026 refers].

(2) The tariff rate is being reduced from 20% to 10% on all dutiable goods, imported for personal use under heading 9804. This change shall come into effect from the 1st of April, 2026 [Clause 136 (b) read with Third Schedule of the Finance Bill, 2026, refers]. Further, SWS will be levied on all goods falling under heading 9804 (dutiable goods imported for personal use) with effect from 1^st April, 2026 [S.No.1 of notification No.03/2026-Customs refers].

II. OTHER CHANGES

(1) Nos. 12, 140, 142 and 143 of TABLE I of notification No. 45/2025-Customs dated 24^th October, 2025, provide for concessional duty on import of specified inputs for manufacture and export of value-added products, subject to end-use conditions. The time period for exporting products manufactured using inputs imported under this scheme has been enhanced from six months to one year. Accordingly, a new condition is being inserted against S. Nos. 12, 140 ,142 and 143 vide S.No I (6, 62, 64, and 65). of notification No. 02/2026-Customs dated 01.02.2026. The changes will come into effect from 2^nd February, 2026.

(2) The duty exemption available for import of specified inputs for use in manufacture of goods meant for export, that is presently available for leather and synthetic footwear, is now being extended to exporters of shoe-uppers. S.No. 143 of TABLE I of notification No. 45/2025-Customs is being amended vide No. I (65) of notification No. 02/2026-Customs dated 01.02.2026. The changes will come into effect from 2^nd February, 2026.

Annexure II

REVIEW OF EXEMPTIONS

A comprehensive review has been undertaken in respect of conditional and unconditional exemptions/concessional duty rate entries in notification No. 45/2025-Customs dated 24.10.2025, notification No. 36/2024-Customs dated 23.07.2024 and other customs notifications. The summary of changes are as below:

A. Notification No. 45/2025-Customs dated 24.10.2025

• • 102 exemptions/concessional rates are being extended upto 31.03.2028 (TABLE 1 of Annexure II).
  • 22 exemptions/concessional rates are being lapsed on their end dates of 31.03.2026 (TABLE 2 of Annexure II).
  • 14 unconditional exemptions (including 5 redundant exemption entries) are being lapsed vide omitting the entries w.e.f. 02.02.2026 (TABLE 3 of Annexure II).
  • Other changes:
    • Sunset clause is being removed from 3 unconditional exemption entries (TABLE 4 of Annexure II).
    • Sunset clause is being prescribed for 4 conditional exemption entries in accordance with Section 25(4A) of the Customs Act (TABLE 5 of Annexure II).

B. Notification No. 36/2024-Customs dated 23.07.2024

• • 22 exemption entries are being omitted as redundant. The applicable BCD will operate through the First Schedule to the Customs Tariff Act, 1975, w.e.f. 02.02.2026. There will be no change in the effective BCD rate (TABLE 6 of Annexure II).

C. Other customs notifications:

• • BCD exemptions prescribed through 4 customs notifications are being extended upto 31.03.2028 (TABLE 7 of Annexure II).
  • Exemption prescribed through one notification is being lapsed on the end date of 31.03.2026 (TABLE 8 of Annexure II).
  • Sunset date is being prescribed in one notification, in accordance with Section 25(4A) of the Customs Act (TABLE 9 of Annexure II).

It may be noted that while continuing the exemptions/concessional rates, some entries have been merged or modified (Details mentioned in TABLE 1 of Annexure II).

A. REVIEW OF CUSTOMS DUTY EXEPTIONS IN NOTIFICATION No. 45/2025-CUSTOMS DATED 24.10.2025

(a) The details of exemptions/concessional rates being extended are detailed as under:

TABLE 1

Sl. No.	S. No. of notification No. 45/2025- Customs	Brief Description	End date
In TABLE I of notification No. 45/2025-Customs
1.	5	Meat and edible offal of ducks, frozen	31.03.2028
2.	14	Planting materials, namely, oil seeds, seeds of vegetables, flowers and ornamental plants, tubers and bulbs of flowers, cuttings or saplings of flower plants, seeds or plants of fruits and seeds of pulses	31.03.2028
3.	58	Algal oil for manufacturing of aquatic feed	31.03.2028
4.	61	Lactose for use in the manufacture of homeopathic medicine	31.03.2028
5.	69	Specified goods used in the processing of sea-food	31.03.2028
6.	84	Gold ores and concentrates for use in the manufacture of gold	31.03.2028
7.	85	Specified bunker fuels for use in ships or vessels	31.03.2028
8.	98	Electrical energy supplied to DTA by power plants of 1000MW or above, and granted formal approval for setting up in SEZ prior to 19th July, 2012	31.03.2028
9.	99	Electrical energy supplied to DTA from power plants of less than 1000MW, and granted formal approval for setting up in SEZ prior to 19th July, 2012	31.03.2028
10.	111	Medical use fission Molybdenum-99 (Mo-99) for use in the manufacture of radio pharmaceuticals	31.03.2028
11.	112	Pharmaceutical Reference Standard	31.03.2028
12.	114	Specified goods used for the manufacture of ELISA Kits	31.03.2028
13.	119	Anthraquinone or 2-Ethyl Anthraquinone, for use in manufacture of Hydrogen Peroxide	31.03.2028
14.	134	Specified goods for use in the manufacture of sheets or backsheet, which are used in the manufacture of solar photovoltaic cells or modules [The entry has been modified]	31.03.2028
15.	138	Specified goods for use in the manufacture of Brushless Direct Current (BLDC) motors	31.03.2028
16.	140	Tags, labels, stickers, belts etc. imported by bona fide exporters	31.03.2028
17.	141	Specified goods imported by bona fide exporters for use in the manufacture of handicraft items, for export	31.03.2028
18.	142	Specified goods imported by bona fide exporters for use in the manufacture of textile or leather garments, for export	31.03.2028
19.	143	Specified goods imported by bona fide exporters for use in the manufacture of leather or synthetic footwear, or other leather products, for export [The entry has been modified]	31.03.2028
20.	144	Specified goods for the manufacture of orthopedic implants or other artificial parts of the body	31.03.2028
21.	146	Capacitor grades polypropylene granules or resins for the manufacture of capacitor grade plastic film	31.03.2028
22.	148	Super absorbent polymer (SAP) imported for use in the manufacture of specified goods	31.03.2028
23.	150	Polytetramethylene ether glycol (PT MEG) for use in the manufacture of spandex yarn	31.03.2028
24.	155	New or retreaded Pneumatic tyres of rubber of a kind used in aircrafts	31.03.2028
25.	156	New or retreaded Pneumatic tyres of rubber of a kind used in aircrafts	31.03.2028
26.	160	Pulp of wood or of other fibrous cellulosic material for the manufacture of newsprint, paper and paperboard, adult diapers, and goods falling under heading 9619	31.03.2028
27.	162	All goods imported for use in manufacture of paper, paperboard, or newsprint	31.03.2028
28.	163	Specified goods used in the printing of newspapers	31.03.2028
29.	164	Lightweight coated paper weighing upto 70g/m2, imported by actual users for printing of magazines	31.03.2028
30.	173	Pile fabrics for the manufacture of toys	31.03.2028
31.	174	Moulds, tools and dies, for the manufacture of parts of electronic components or electronic equipment	31.03.2028
32.	175	Graphite Felt for growing silicon ingots, and thin steel wire used in wire saw for slicing of silicon wafers	31.03.2028
33.	184	Simply Sawn Diamonds	31.03.2028
34.	185	Seeds for use in manufacturing of rough lab-grown diamonds	31.03.2028
35.	205	Ferrous Scrap	31.03.2028
36.	208	Magnesium Oxide (MgO) coated cold rolled steel coils for use in manufacture of cold rolled grain oriented steel (CRGO).	31.03.2028
37.	209	Specified goods for the manufacture of cold rolled grain-oriented steel	31.03.2028
38.	220	Forged steel rings for manufacture of special bearings for use in wind operated electricity generators [The entry is being merged with S.No. 230 in TABLE I of notification No. 45/2025-Customs dated 24.10.2025.]	31.03.2028
39.	222	Copper wire or refined copper for manufacture of photovoltaic ribbon for solar photovoltaic cell or modules [The entry has been modified]	31.03.2028
40.	227	Dies for drawing metal, when imported after repairs from abroad, in exchange of similar worn-out dies exported out of India for repairs	31.03.2028
41.	228	Parts and raw materials for manufacture of goods to be supplied in connection with the	31.03.2028
		purposes of off-shore oil exploration or exploitation
42.	229	Specified goods when imported by a specified person, in relation with various petroleum operations or coal bed methane operations	31.03.2028
43.	230	Goods for manufacture or the maintenance of wind operated electricity generator components.[The entry has been modified after merger of entry S. No. 220 in TABLE I of notification No. 45/2025-Customs]	31.03.2028
44.	232	Parts of catalytic converters and goods for use in the manufacture of catalytic convertors or its parts	31.03.2028
45.	233	Platinum or Palladium for use in the manufacture of Noble Metal Compounds and Noble Metal Solutions	31.03.2028
46.	234	Ceria zirconia compounds for use in the manufacture of wash coat for catalytic converters	31.03.2028
47.	235	Cerium compounds for use in  themanufacture of wash coat for catalytic converters	31.03.2028
48.	237	Machinery, electrical equipment, other instruments and their parts except populated PCBs for use in fabrication of semiconductor wafer and Liquid Crystal Display	31.03.2028
49.	238	Machinery, electrical equipment, other instruments and their parts except populated PCBs for use in assembly, testing, marking and packaging of semiconductor chips	31.03.2028
50.	239	Specified goods for the manufacture of certain goods and their parts	31.03.2028
51.	246	Bushings made of Platinum and Rhodium alloy when imported in exchange of worn out or damaged bushings exported out of India	31.03.2028
52.	247	Parts and components for manufacture of tunnel boring machines	31.03.2028
53.	256	Evacuated tubes with three layers of solar selective coating for use in the manufacture of solar water heater and system	31.03.2028
54.	267	Ball screws for use in the manufacture of CNC Lathes	31.03.2028
55.	268	Linear Motion Guides for use in the manufacture of CNC Lathes	31.03.2028
56.	269	CNC Systems for use in manufacture of CNCL lathes	31.03.2028
57.	270	Certain goods for use in manufacture of plastic processing machineries	31.03.2028
58.	272	Parts and components for use in the manufacture of goods like Micro ATMs, Fingerprint reader/scanner, Iris scanner, miniaturized POS card reader	31.03.2028
59.	273	All parts for use in the manufacture of LED lights or fixtures including LED Lamps	31.03.2028
60.	274	All inputs for use in the manufacture of LED (Light Emitting Diode) driver or Metal Core Printed Circuit Board for LED lights and fixtures or LED lamps	31.03.2028
61.	277	Goods imported for being tested in specified test centers	31.03.2028
62.	280	Specified goods for use in the manufacturing of Microphones	31.03.2028
63.	292	(i) Parts, components and accessories for manufacture of Digital Video Recorder (DVR)/ Network Video Recorder (NVR) falling under 8521 90 90, other than the following items, namely(a) populated printed circuit boards;(b) charger or power adapter;(ii) Sub-parts for use in manufacture of items mentioned at (i) above[Only clause (ii) is being continued while clause (i) is being allowed to lapse on the end-date of 31st March, 2026]	31.03.2028
64.	293	Parts, components and accessories for use in manufacture of reception apparatus for television	31.03.2028
65.	294	Parts, components and accessories for manufacture of CCTV Camera	31.03.2028
66.	295	Parts, components and accessories except Lithium-ion cell and PCBA for use in manufacture of Lithium-ion battery and battery pack	31.03.2028
67.	296	Inputs, parts or sub-parts for use in the manufacturing of PCBA of Lithium-ion battery and battery pack	31.03.2028
68.	297	Open cell for use in the manufacture of LCD and LED TV panels	31.03.2028
69.	302	Specified goods for use in the manufacture of LCD and LED TV panels	31.03.2028
70.	306	Magnetron of up to 1.5 KW used for the manufacture of domestic microwave ovens	31.03.2028
71.	314	Parts, sub-parts, inputs or raw material for use in manufacture of Lithium-ion cells	31.03.2028
72.	319	Lithium-ion cell for use in manufacture of battery or battery pack other than for cellular phone or EV	31.03.2028
73.	320	Lithium-ion cell for use in the manufacture of battery or battery pack of cellular mobile phone	31.03.2028
74.	321	Lithium-ion cell for use in the manufacture of battery or battery pack of EV or hybrid motor vehicle	31.03.2028
75.	333	Parts of gliders or simulators of aircrafts (excluding rubber tyres and tubes of gliders)	31.03.2028
76.	334	Raw materials for manufacture of aircrafts and parts of aircrafts	31.03.2028
77.	335	Components or parts including engines, of aircraft for manufacture of air craft	31.03.2028
78.	336	Parts, testing equipment, tools and tool-kits for MRO of aircraft, components or parts of aircraft	31.03.2028
79.	337	Other Aircrafts	31.03.2028
80.	338	Components or parts, including engines, of aircraft	31.03.2028
81.	339	Satellites and payloads, ground equipment brought for testing and ground installations for satellite including its spares and consumables	31.03.2028
82.	340	Scientific and technical instruments, apparatus, equipment etc., required for launch vehicles and satellites and payloads	31.03.2028
83.	341	All goods under heading 8802 (except CTH 8802 60 00)	31.03.2028
84.	342	All goods under heading 8802 (except CTH 8802 60 00)	31.03.2028
85.	343	All goods under heading 8802 (except CTH 8802 60 00)	31.03.2028
86.	345	Parts (other than rubber tubes), of aircraft of heading 8802	31.03.2028
87.	348	Parts (other than rubber tubes), of aircraft of heading 8802	31.03.2028
88.	350	Barges or pontoons imported along with ships for the more speedy unloading of imported goods and loading of export goods	31.03.2028
89.	355	Fishing vessels, tugs and pusher crafts, light vessels, excluding vessels and other floating structures as are imported for breaking up	31.03.2028
90.	375	Stainless steel tube and wire, cobalt chromium tube, etc. required for manufacture of Coronary stents/coronary stent system and artificial heart valve	31.03.2028
91.	376	Ostomy products for managing Colostomy, Ileostomy, Ureterostomy, Ileal Conduit Urostomy Stoma cases	31.03.2028
92.	377	Medical and surgical instruments, apparatus and appliances including spare parts and accessories thereof	31.03.2028
93.	382	Hospital Equipment for use in specified hospitals	31.03.2028
94.	386	Raw materials, parts or accessories for the manufacture of Cochlear Implants	31.03.2028
95.	387	X-Ray Baggage Inspection Systems and parts thereof	31.03.2028
96.	388	Portable X-ray machine / system	31.03.2028
97.	392	Parts and cases of braille watches, for the manufacture of Braille watches	31.03.2028
98.	396	Parts of electronic toys for manufacture of electronic toys	31.03.2028
99.	415	All items of machinery, and auxiliary equipment required for initial setting up of a project for generation of power or generation of compressed bio-gas (Bio-CNG) using non-conventional materials	31.03.2028
100.	440	All items of machinery, and auxiliary equipment for setting up of fuel cell-based system for generation of power or for demonstration purposes or balance of systems operating on biogas or bio-methane or by-product hydrogen	31.03.2028
In TABLE II of notification No. 45/2025-Customs
101.	1	Security fibre, security threads, Paper Based Taggant, including M-feature, for use in the manufacture of security paper by Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Private Limited, Mysore	31.03.2028
102.	2	Raw materials for use in manufacture of security fibre and security threads for supply to Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Private Limited, Mysore for use in manufacture of security paper	31.03.2028

(b) Conditional exemptions entries that are being allowed to lapse are detailed as under:

TABLE 2

Sl. No.	S. No. of notification No. 45/2025- Customs	Brief Description	End date
In TABLE I of notification No. 45/2025-Customs
1.	93	Naphtha, for use in the manufacture of fertilisers	31.03.2026
2.	95	Liquified petroleum gases (LPG), in excess of the quantity of petroleum gases and othergaseous hydrocarbons consumed in the manufacture of polyisobutylene by the unit located in the Domestic Tariff Are (DTA), received from the unit located in Special Economic Zone (SEZ) and returned by the DTA unit to the SEZ unit from where such LPG were received.	31.03.2026
3.	107	Silicon in all forms for the manufacture of un-diffused silicon wafers; and un-diffused silicon wafers for the manufacture of solar cells or solar cell modules	31.03.2026
4.	117	Maltol, for use in the manufacture of deferiprone	31.03.2026
5.	145	Specified goods imported for the manufacture of Copper-T contraceptives	31.03.2026
6.	154	Ethylene – Propylene – Non-Conjugated Diene Rubber (EPDM) for use in the manufacture of insulated wires and cables	31.03.2026
7.	172	Hydrophilic non-woven, hydrophobic non- woven, imported for use in the manufacture of adult diapers	31.03.2026
8.	201	Spent catalyst or ash containing precious metals	31.03.2026
9.	218	Metal parts for use in the manufacture of electrical insulators	31.03.2026
10.	219	Pipes and tubes for use in manufacture of boilers	31.03.2026
11.	231	Permanent magnets for manufacture of synchronous generators above 500KW for use in wind operated electricity generators	31.03.2026
12.	236	Zeolite for use in the manufacture of wash coat for catalytic converters	31.03.2026
13.	243	High speed cold-set or high speed heat set web offset rotary printing machines along with mail room equipment	31.03.2026
14.	271	Cash dispenser or automatic banknote dispenser and its parts and components	31.03.2026
15.	275	Television equipment, cameras and other equipment for taking films, imported by a foreign film unit or television team	31.03.2026
16.	276	Photographic, filming, sound recording of foreign origin, if imported into India after having been exported there from	31.03.2026
17.	291	Parts and Components of Digital Still Image Video Cameras	31.03.2026
18.	309	Raw materials or parts for use in manufacture of e-Readers	31.03.2026
19.	370	X-Ray tubes used in manufacture of X ray machines for medical, surgical or veterinary use	31.03.2026
20.	372	Flat panel detector for use in manufacture of X­Ray machine for medical, surgical or veterinary use	31.03.2026
21.	397	Parts of video games for the manufacture of video games	31.03.2026
In TABLE IV of notification No. 45/2025-Customs
22.	1	Motion pictures, music, gaming software for use on gaming consoles printed or recorded on media	31.03.2026

(c) Unconditional exemption entries that are being lapsed by omitting the respective entries, with effect from 2^nd February, 2026 are detailed as under:

TABLE 3

Sl. No.	S. No. of TABLE I in notification No. 45/2025- Customs	Brief Description
1.	1	Animals and birds imported by Zoo
2.	113	Alpha pinene
3.	123	Artificial Plasma
4.	128	Ammonium phosphate or ammonium nitro-phosphate, for use as manure or for the production of complex fertilisers
5.	132	Potassium sulphate, containing not more than 52% by weight of potassium oxide*
6.	137	Other diagnostic or laboratory reagents falling under tariff item 3822 90 90*
7.	139	Ethylene vinyl acetate (EVA)*
8.	157	New Pneumatic tyres, of rubber, of a kind used on aircrafts (other than goods covered under S.Nos. 155 and 156)*
9.	213	INVAR
0.	217	Other screws and bolts, nuts and other non-threaded articles falling under tariff items 7318 15 00, 7318 16 00, 7318 29 90*
1.	258	Coffee roasting, brewing or vending machines for use in the manufacture or processing of coffee
2.	285	Parts of Radio Trunking terminals
3.	287	CD-ROMs containing books of an educational nature, journals, periodicals (magazines) or newspapers
4.	310	Loco simulators

*Effective BCD rate will remain the same for Sl.No. 5, 6, 7, 8 and 10.

(d) Sunset clause is being removed for the unconditional exemption entries as detailed under:

TABLE 4

Sl. No.	S. No. of TABLE I in notification No. 45/2025- Customs	Brief Description
1.	303	Parts suitable for use solely or principally with the apparatus of headings 8525, 8526 or 8527. *The said entry is being omitted w.e.f 1st May, 2026 as the applicable rates will be incorporated in Tariff itself.
2.	353	All goods (excluding vessels and other floating structures as are imported for breaking up) (CTH 8901)
3.	356	All goods (excluding vessels and other floating structures as are imported for breaking up) (CTH 8906)

(e) Sunset clause is being prescribed for the following conditional exemptions, as detailed under:

TABLE 5

Sl. No.	S. No. of TABLE I in notification No. 45/2025- Customs	Brief Description	End date prescribed
1.	192	Gold dore bar, having gold content not exceeding 95%	31.03.2027
2.	193	Silver dore bar having silver content not exceeding 95%	31.03.2027
3.	194	(i) Gold bars, other than tola bars, bearing manufacturer’s or refiner’s engraved serial number and weight expressed in metric units, and gold coins having gold content not below 99.5%, imported by the eligible passenger (ii) Gold in any form other than (i), including tola bars and ornaments, but excluding ornaments studded with stones or pearls	31.03.2027
4.	195	Silver, in any form including ornaments, but excluding ornaments studded with stones or pearls, imported by the eligible passenger	31.03.2027

B. REVIEW OF CUSTOMS DUTY EXEMPTIONS IN OTHER NOTIFICATION

(a) The following entries of notification No. 36/2024-Customs dated 23.07.2024, being redundant, are being omitted with effect from 2^nd February, 2026. The current applied rate of Basic Customs Duty on these commodities would operate through the First Schedule.

TABLE 6

Sl. No.	S. No. of notification No. 36/2024-Customs	Description
1.	5	Copper ores and concentrates
2.	6	Cobalt ores and concentrates
3.	7	Tin ores and concentrates
4.	8	Tungsten ores and concentrates
5.	9	Molybdenum ores and concentrates
6.	10	Zirconium ores and concentrates
7.	12	Vanadium ores and concentrates
8.	13	Niobium or tantalum ores and concentrates
9.	14	Antimony ores and concentrates
10.	42	Unwrought Tin
11.	43	Unwrought tungsten, including bars and Rods obtained simply by sintering
12.	44	Unwrought molybdenum, including bars and rods obtained simply by sintering
13.	45	Unwrought tantalum, including bars and rods obtained by sintering, powders
14.	46	Cobalt, unwrought
15.	47	Bismuth, unwrought
16.	48	Unwrought zirconium, powders, containing less than 1 part hafnium to 500 parts zirconium by weight
17.	49	Unwrought antimony, powders
18.	50	Beryllium unwrought, powders
19.	51	Hafnium unwrought, waste and scrap, powders
20.	52	Rhenium unwrought
21.	53	Cadmium unwrought, Powders
22.	54	Cadmium, wrought

(b) Custom duty exemption prescribed by following standalone notifications are being extended, as detailed under:

TABLE 7

Sl. No.	Notification No.	Brief Description	End date
1.	248-Customs dated 2nd August 1976	Exemption to precious stones imported by posts on approval or return’ basis	31.03.2028
2.	32/1997-Customs dated 1st April 1997	Exemption to goods imported for execution of an export order for jobbing	31.03.2028
3.	24/2001-Customs dated 1st March 2001	Exemption to copper cathodes, wire bars and wire rods produced out of copper reverts	31.03.2028
4.	25/2001-Customs dated 1st March 2001	Exemption on gold and silver produced out of copper anode slime which were exported out of India for toll smelting and processing	31.03.2028

(c) Custom duty exemption prescribed by following standalone notification is being lapsed, as detailed under:

TABLE 8

Sl. No.	Notification No.	Brief Description	End date
1.	113/2003-Customs dated 22nd July 2003	Exemption to castor oil cake and castor de-oiled cake manufactured from indigenous castor oil seeds on indigenous plant and machinery by unit in SEZ and brought to DTA	31.03.2026

(d) Sunset clause is being prescribed for the following standalone notification:

TABLE 9

Sl. No.	Notification No.	Brief Description	End date prescribed
1.	29/2025-Customs dated 9th May, 2025	Exemption to works of art and antiques intended for public exhibition	31.03.2028

Annexure III

SIMPLIFICATION OF TARIFF STRUCTURE (TARRIFISATION)

The current applied rate of Basic Customs Duty on these commodities would operate through the First Schedule and the corresponding entries would be omitted from the concerned notifications (s). The changes will come into effect from the 1^st day of May, 2026. Please refer to Fifth Schedule of the Finance Bill, 2026, for more details.

Table 1

S. No.	Heading, sub-heading, tariff item	Commodity	New Tariff Rate w.e.f 1st May 2026
1.	0207 25 00, 0207 27 00	Meat and edible offal of turkeys, frozen (S. No. 4 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	5%
2.	0306 36 60	Artemia (S. No. 10 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	Nil
3.	0511 91 40	Artemia cysts (S. No. 13 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	Nil
4.	0802 11 00	Almonds, in shell (S. No. 24 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	Rs.35 per kg
5.	0802 12 00	Almonds, shelled (S. No. 25 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	Rs. 100 per kg
6.	0802 31 00	Walnuts, in shell (S. No. 26 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	100%
7.	1209 (other than those falling under sub headings 1209 91 and 1209 99)	Seeds, fruit and spores, of a kind used for sowing (S. No. 34 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	15%
8.	1505	Wool grease and fatty substances derived therefrom (including lanolin) (S. No. 40 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	15%
S. No.	Heading, sub-heading, tariff item	Commodity	New Tariff Rate w.e.f 1st May 2026
9.	2008 19 21, 2008 19 22, 2008 19 29, 2008 19 91	Makhana, other roasted nuts and seeds (S. No. 62 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	30%
5.	2008 19 92	Other nuts, otherwise prepared or preserved (S. No. 63 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	30%
6.	2309 90 31	Prawn and shrimps feed (S. No. 76 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	5%
7.	2504	Natural graphite (S. No. 1 of notification No. 36/2024-Customs dated 23.07.2024]	2.5%
8.	2505	Natural sands of all kinds, whether or not coloured, other than metal bearing sands (S. No. 2 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
9.	2506	Quartz (other than natural sands); quartzite, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape (S. No. 3 of notification No. 36/2024-Customs dated 23.07.2024]	2.5%
10.	2530 90 91	Strontium sulphate (natural ore) (S. No. 4 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
11.	2701, 2702, 2703	Coal; briquettes, ovoids and similar solid fuels manufactured from coal; Lignite, whether or not agglomerated, excluding jet; Peat (including peat litter), whether or not agglomerated(S. No. 86 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	2.5%
12.	2709 00 10	Petroleum crude	Re 1 per tonne
		[S. No. 87 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]
18.	2804 50 20	Tellurium [S. No. 15 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
19.	2804 61 00	Silicon, containing by weight not less than 99.99% of silicon [S. No. 16 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
20.	2804 69 00	Silicon, other [S. No. 17 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
21.	2804 90 00	Selenium [S. No. 18 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
22.	2805 30 00	Rare-earth metals, scandium and yttrium, whether or not intermixed or inter alloyed [S. No. 19 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
23.	2809 20 10	Phosphoric Acid [S. No. 109 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	5%
24.	2811 22 00	Silicon dioxide [S. No. 20 of notification No. 36/2024-Customs dated 23.07.2024]	2.5%
25.	2816 40 00	Oxides, hydroxides and peroxides, of strontium or barium [S. No. 22 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
26.	2822 00 10	Cobalt oxides [S. No. 23 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
27.	2822 00 20	Cobalt hydroxides [S. No. 24 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
28.	2822 00 30	Commercial cobalt oxides [S. No. 25 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
29.	2825 20 00	Lithium oxide and hydroxide [S. No. 26 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
30.	2825 30	Vanadium oxides and hydroxides [S. No. 27 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
31.	2825 60 10	Germanium oxides [S. No. 28 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
32.	2825 70	Molybdenum oxides and hydroxides [S. No. 29 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
33.	2825 80 00	Antimony Oxides [S. No. 30 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
34.	2825 90 20	Cadmium oxide [S. No. 31 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
35.	2827 35 00	Chlorides of Nickel [S. No. 32 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
36.	2827 39 30	Strontium chloride [S. No. 33 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
37.	2833 24 00	Sulphates of Nickel [S. No. 34 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
38.	2834 21 00	Nitrates of potassium [S. No. 35 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
39.	2836 91 00	Lithium carbonates [S. No. 36 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
40.	2836 92 00	Strontium carbonate [S. No. 37 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
41.	2910 20 00	Methyloxirane (propylene oxide) [S. No. 118 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	2.5%
42.	2918 15 30	Bismuth citrate [S. No. 40 of notification No. 36/2024-Customs dated 23.07.2024]	Nil
43.	3102 30 00	Ammonium nitrate, whether or not in aqueous solution [S. No. 126 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	5%
44.	3801	Artificial Graphite; colloidal or semi- colloidal graphite; preparations based on graphite or other carbon in form of pastes, blocks, plates or other semi-manufactures [S. No. 41 of notification No. 36/2024-Customs dated 23.07.2024]	2.5%
45.	3808 93 30	Gibberellic acid [S. No. 115 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	5%
46.	3904	Polymers of vinyl chloride or of other halogenated olefins, in primary forms [S. No. 147 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	7.5%
47.	4906	Plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, being originals drawn by hand; hand- written texts; photographic reproductions on sensitised paper and carbon copies of the foregoing[S. No. 169 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	Nil
48.	5201 00 25	Other cotton of staple length exceeding 32.0 mm (S. No. 171 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	Nil
49.	7202 60 00	Ferro-nickel (S. No. 204 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025] Blister copper	Nil
50.	7402 00 10	(S. No. 221 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	Nil
51.	7802	Lead waste and scrap (S. No. 223 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	Nil
52.	7902	Zinc waste and scrap (S. No. 224 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	Nil
53.	8105 20 30	Cobalt powders (S. No. 226 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	Nil
54.	8419 89 12, 8419 89 13, 8419 89 14, 8419 89 15, 8419 89 16, 8419 89 17, 8419 89 19	Reactors, columns or towers or chemical storage tanks (S. No. 257 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	7.5%

For the following entries, new tariff lines have been created in the First Schedule for the purposes of tarrifisation of effective rates. The changes will come into effect from the 1^st day of May, 2026. Please refer to Fourth Schedule of the Finance Bill, 2026, for more details

Table 2

NEW TARIFF LINES HAVE BEEN CREATED
S. No.	Chapter/ heading/sub- heading/tariff item mentioned in notification	Commodity	New tariff item being created w.e.f. 01.05.2026	Rate of duty
1.	0306 19 00	Krill, frozen (S. No. 7 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	0306 19 10	15%
2.	0802 99 00	Pecan Nuts (S. No. 27 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	0802 99 10	30%
3.	0810 40 00	Cranberries, fresh (S. No. 30 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	0810 40 10	10%
4.	0810 40 00	Blueberries, fresh (S. No. 30 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	0810 40 20	10%
5.	0811 90	Cranberries, frozen (S. No. 31 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	0811 90 11 0811 90 91	10%
6.	0811 90	Blueberries, frozen (S. No. 31 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	0811 90 12 0811 90 92	10%
7.	0813 40 90	Cranberries, dried (S. No. 32 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	0813 40 30	10%
8.	0813 40 90	Blueberries, dried (S. No. 32 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	0813 40 40	10%
9.	1207 99 90	Shea Nuts (S. No. 33 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	1207 99 50	15%
10.	2008 93 00	Cranberries, otherwise prepared or preserved, whether or not	2008 93 10	5%
S. No.	Chapter/ heading/sub- heading/tariff item mentioned in notification	Commodity	New tariff item being created w.e.f. 01.05.2026	Rate of duty
		containing added sugar or other sweetening matter or spirit, not elsewhere specified or included [S. No. 64 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]
11.	2008 99	Blueberries, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included [S. No. 65 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	2008 99 15	10%
12.	2106 90	Other than compound alcoholic preparations of a kind used for manufacture of beverages, of analcoholic strength by volume exceeding 0.5% vol., determined at 20 degrees centigrade[S. No. 67 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	2106 90 (other than2106 90 51)	50%
13.	2202 99	Cranberry products [S. No. 68 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	2202 99 21, 2202 99 31, 2202 99 91	10%
14.	2529 22 00	Acid grade fluorspar containing by weight more than 97% of calcium fluoride [S. No. 83 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	2529 22 10	2.5%
15.	2615 90	Hafnium ores and concentrates [S. No. 11 of notification No. 36/2024-Customs dated 23.07.2024]	2615 10 10	Nil
16.	2841	Ammonium metavanadate [S. No. 110 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	2841 90 10	2.5%
S. No.	Chapter/ heading/sub- heading/tariff item mentioned in notification	Commodity	New tariff item being created w.e.f. 01.05.2026	Rate of duty
17.	29	Gibberellic acid (S. No. 115 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	2932 20 40	5%
18.	29	Triethyl orthoformate (S. No. 116 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	2915 90 96	5%
19.	29	Diethyl malonate (S. No. 116 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	2917 19 22	5%
20.	29	DL-2 Aminobutanol (S. No. 116 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	2922 19 30	5%
21.	29	Aceto butyrolactone (S. No. 116 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	2932 20 50	5%
22.	29	Artemisinin (S. No. 116 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	2932 99 30	5%
23.	29	Thymidine (S. No. 116 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	2934 99 50	5%
24.	3302 10	Mixtures of odoriferous substances of a kind used in food or drink industries other than compound alcoholic preparations of a kind used for manufacture of beverages, of an alcoholic strength by volume exceeding 0.5% vol., determined at 20 degrees centigrade (S. No. 135 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	3302 10 19, 3302 10 99	10%
25.	4104 11 00, 4104 19 00, 4105 10 00,	Wet blue leather (hides and skin) (S. No. 159 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	4104 11 10, 4104 19 10, 4105 10 10,	Nil
26.	4106 21 00, 4106 31 00, 4106 91 00 4702	Rayon grade wood pulp [S. No. 161 of TABLE ! of notification No.n 45/2025-Customs dated 24.10.2025]	4106 21 10, 4106 31 10, 4106 91 10 4702 00 10	2.5%
27.	4823 90 90	All goods other than kites [S. No. 165 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	4823 90 90 (kites fall under new tariff item 4823 90 40)	10%
28.	8101 99 90	Tungsten (wolfram) bars and rods, other than those obtained simplyby sintering, profiles, plates, sheets, strip and foil[S. No. 225 of TABLE ! of notification No.45/2025-Customs dated 24.10.2025]	8101 99 20	5%
29.	8415 90 00	All goods other than indoor or outdoor units of split-system air conditioner [S. No. 255 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	8415 90 90	10%
30.	8421 99 00	All goods other than Reverse Osmosis (RO) membrane element for household type filters [S. No. 259 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	8421 99 90	7.5%
31.	8507 90	Battery separators [S. No. 284 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	8507 90 20	5%
32.	8529 10 99, 8529 90 90	Parts suitable for use solely or principally with the apparatus of headings 8525, 8526 or 8527 [S. No. 303 of TABLE ! of notification No. 45/2025-Customs dated 24.10.2025]	8529 10 93, 8529 90 30	10%
33.	8609 00 00	Refrigerated containers [S. No. 312 of TABLE I of notification No. 45/2025-Customs dated 24.10.2025]	8609 00 10	5%

Annexure IV

AMENDMENTS TO CUSTOMS ACT, 1962

(1) Sub-section (2) of section 1 of the Customs Act, 1962 is being amended to extend the jurisdiction of the said Act beyond the territorial waters of India, for the purpose of fishing and fishing related activities.

(2) In section 2, a new clause is being inserted to define the expression ‘Indian-flagged fishing vessel’.

(3) Sub-section (6) of section 28 is being amended so as to provide that the penalty paid under sub-section (5) of section 28, on determination under sub-section (6) thereof, shall be deemed to be a charge for non-payment of duty.

(4) Sub-section (2) of section 28J is being amended so as to provide that advance ruling under sub-section (1) of that section shall remain valid for a period of five years or till there is a change in law or facts on the basis of which the advance ruling has been pronounced, whichever is earlier.

(5) The proviso to the said sub-section is also being substituted so as to provide that in respect of any advance ruling in force on the date on which the Finance Bill, 2026 receives the assent of the President, the Authority shall, upon a request by the applicant, extend the validity of the ruling for five years from the date of the ruling.

(6) A new section 56A is being inserted to provide special provisions for fishing and fishing related activities by an Indian-flagged fishing vessel beyond territorial waters of India. It also provides that fish harvested beyond the territorial waters of India may be brought into India free of duty and to treat fish that has landed at foreign port as export of goods in such manner as may be provided by rules. It also provides to make regulations to provide for the form and manner of making an entry in respect of fish harvested by an Indian-flagged fishing vessel including its declaration, custody, examination, assessment of duty, clearance, transit or transhipment.

(7) In the Customs Act, for section 67, the following section shall be substituted, namely:-

“67. The owner of any warehoused goods may remove them from one warehouse to another, subject to such conditions as may be prescribed.”.

The proposed section seeks to do away with the requirement of prior permission of the proper officer under the said section for removal of warehoused goods from one custom bonded warehouse to another.

(8) In section 84 of the Customs Act, in clause (b), for the words “the examination”, the words “the custody, examination” shall be substituted. The amendment seeks to enable the Board to make provisions for the custody of goods imported or to be exported under the regulations framed under this section.

These changes will come into effect from the date of enactment of the Finance Bill, 2026

CHANGES IN CUSTOMS RULES AND REGULATIONS

(1) Deferred duty payment is being made monthly from the existing 15 days and a new class of ‘eligible importers’ is being created. This is being done by amending the existing Deferred Payment of Import Duty Rules, 2016.

(2) Baggage Rules, 2016 is being superseded by the Baggage Rules, 2026 to rationalize the baggage provisions and addressing passenger related concerns at airports and resolution of interpretational issues; provide clarity in temporarily carriage of goods brought in or taken out to avoid unnecessary detention of goods, and restructure Transfer of Residence benefits for Indian residents and foreign professionals based on duration of stay. These changes shall come into effect from midnight of 02.02.2026.

(3) The Customs Baggage Declaration Regulations, 2013, the Baggage (Transit to Customs Stations) Regulations, 1967 and the Passenger’s Baggage (Levy of Fees) Regulations, 1966 are being superseded by the Customs Baggage (Declaration and Processing) Regulations, 2026 to consolidate all baggage-related procedural provisions into a single, comprehensive and facilitative framework.

(4) A Master Circular consolidating the statutory provisions along with applicable instructions from existing circulars/ instructions and to provide operational clarity on key aspects of baggage rules and regulations is being issued.

CENTRAL EXCISE

The following rate related changes are being made in the National Calamity Contingent Duty (NCCD) and Central Excise

(1) The Seventh Schedule to the Finance Act, 2001 is being amended to revise the National Calamity Contingent Duty (NCCD) Schedule rates on chewing tobacco, jarda scented tobacco and other tobacco products under HS 2403 99 10, 2403 99 30 and 2403 99 90 respectively, w.e.f. 1^st May, 2026, as detailed below. The effective rate will remain the same (i.e. at 25%) vide notification No. 01/2026-Central Excise dated 1^st February, 2026.

(2) For the purpose of computation of central excise duty on CNG compressed with biogas/Compressed Biogas (CBG), the value of such blended CNG shall exclude the value of Biogas/Compressed Bio Gas (CBG) contained in it and the appropriate Central Tax, State Tax, Union Territory Tax or Integrated Tax, as the case may be, paid on such biogas/CBG. To this effect, notification No. 11/2017-Central Excise dated 30.06.2017 is being suitably amended vide notification No. 02/2026-Central Excise dated 01.02.2026 w.e.f. 2^nd February, 2026. Notification No. 05/2023-Central Excise dated 01.02.2023 is being rescinded w.e.f. 2^nd February, 2026.

(3) The additional excise duty of Rs 2 per litre notified to be levied on unblended Diesel vide notification No. 11/2017-Central Excise dated 30.06.2017, as amended, is being deferred till 31st March, 2028 [notification No. 02/2026-Central Excise dated 1st February, 2026 refers].

Annexure V

GOODS AND SERVICE TAX

Note: (a) (i) CGST Act means Central Goods and Services Tax Act, 2017 (ii) IGST Act means Integrated Goods and Services Tax Act, 2017

(b) Unless otherwise specified, amendments carried out through the Finance Bill, 2026 will come into effect from the date when the same will be notified concurrently, as far as possible, with the corresponding amendments to the similar Acts passed by the States & Union territories with legislature

AMENDMENTS IN CGST AND IGST, 2017

(1) Sub-section (3) of section 15 of the Central Goods and Services Tax Act, 2017 is being amended to do away with the requirement of linking the post-sale discount with an agreement and to refer to issuance of credit note under section 34 where the input tax credit is reversed by the recipient.

(2) Section 34 of the Central Goods and Services Tax Act, 2017 is being amended so as to include the reference of section 15 in the said section.

(3) Sub-section (6) of Section 54 of the Central Goods and Services Tax Act, 2017 is being amended to extend the provisions of provisional refund to refunds arising out of inverted duty structure.

(4) Sub-section (14) of Section 54 of the Central Goods and Services Tax Act, 2017 is being amended to remove the threshold limit for sanction of refund claims in case of goods exported out of India with payment of tax.

(5) The Government may, by notification, empower an existing Authority (which also includes a Tribunal) as the National Appellate Authority for Advance Rulings to hear appeals under section 101B of the CGST Act. This would further make the mechanism for dispute resolution robust, ensuring consistency in advance rulings, and offering greater certainty to taxpayers. This will come into effect from 1^st day of April, 2026.

(6) Clause (b) of sub-section (8) of section 13 of the Integrated Goods and Services Tax Act, 2017 is being omitted so as to provide that the place of supply for “intermediary services” will be determined as per the default provision under section 13(2) of the IGST Act.

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