The Explanatory Memoranda issued on 1 February 2026 outline a set of customs and central excise changes aimed at extending existing benefits, rationalising duties, and implementing new procedural frameworks. On the customs side, Notifications 01/2026 to 03/2026 extend the validity of select exemption notifications up to 31 March 2028, introduce further Basic Customs Duty changes, and revise the applicable Social Welfare Surcharge and Agricultural Infrastructure Development Cess on specified goods. Notifications 04/2026 and 05/2026 align the customs framework with the newly notified Baggage Rules, 2026, including rescission of earlier baggage-related notifications. Parallelly, Notifications 12/2026 to 15/2026 (N.T.) expand the duty deferral regime by adding a new category of eligible manufacturer importers, extending the deferral period to 30 days for trusted entities, and notifying the Baggage Rules, 2026 along with the Customs Baggage (Declaration & Processing) Regulations, 2026. On the central excise front, Notifications 01/2026 to 03/2026 prescribe effective NCCD rates on specified tobacco products, exclude biogas value from blended CNG for excise purposes while deferring additional diesel duty till 31 March 2028, and rescind an earlier excise notification.
Explanatory Memoranda to Notification Nos. 01/2026-Customs to 03/2026-Customs, dated 1st February, 2026: –
| S.
No. |
Notification No. | Description |
| 1. | 01/2026-Customs, dated 1st February 2026 | Seeks to amend five notifications, in order to extend their validity for a further period of two years till 31st March 2028 and make amendments in notification No. 25/2002-Customs, dated the 1st March, 2002 and notification No. 36/2024-Customs, dated the 23rd July, 2024. |
| 2. | 02/2026-Customs, dated 1st February 2026 | Seeks to further amend notification No. 45/2025-Customs dated the 24th October, 2025 to notify Basic Customs Duty related changes. |
| 3. | 03/2026-Customs, dated 1st February 2026 | Seeks to further amend notification No. 11/2018-Customs, dated the 2nd February, 2018 and notification No.11/2021-Customs, dated the 1st February, 2021 to revise Social Welfare Surcharge (SWS) and Agricultural Infrastructure Development Cess (AIDC) applicable on certain items. |
| 4. | 04/2026-Customs dated 01.02.2026 | Seeks to amend Notification No. 26/2016-Customs dated 31.03.2016 in view of new Baggage Rules, 2026. |
| 5. | 05/2026-Customs dated 01.02.2026 | Seeks to rescind Notification No. 11/2004-Customs dated 08.01.2004 and Notification No. 27/2016-Customs dated 31.03.2016 in view of new Baggage Rules, 2026. |
Explanatory Memorandum to Notification Nos. 12 to 15/2026-Customs (N.T.) dated 01.02.2026:-
| Sl. No. | Notification No. & Date | Description |
| 1. | 12/2026-Customs (N.T.) dated 01.02.2026 | Seeks to add a new class of eligible importers as ‘Eligible Manufacturer Importers’ under Section 47 of the Customs Act, 1962 for duty deferral facility. |
| 2. | 13/2026-Customs (N.T.) dated 01.02.2026 | Seeks to amend the Deferred Payment of Import Duty Regulations, 2016 to extend duty deferral facilities for trusted entities from 15 to 30 days. |
| 3. | 14/2026-Customs (N.T.) dated 01.02.2026 | Seeks to notify the Baggage Rules, 2026. |
| 4. | 15/2026-Customs (N.T.) dated 01.02.2026 | Seeks to notify the Customs Baggage (Declaration & Processing) Regulations, 2026. |
Explanatory Memoranda to Notification No. 01/2025-Central Excise to Notification No. 03/2025-Central Excise, dated 1st February, 2025
| S.
No. |
Notification No. | Description |
| 1. | 01/2026-Central Excise, dated 1st February 2026 | Seeks to prescribe effective rates of NCCD on chewing tobacco, jarda scented tobacco and other tobacco products. |
| 2. | 02/2026-Central Excise, dated 1st February 2026 | Seeks to (i) exempt value of Biogas/ Compressed Biogas contained in blended CNG along with appropriate GST paid on it, from the value of such blended CNG for the purpose of calculation of Central Excise duty on such blended CNG and (ii) to defer implementation of levy of additional duty of Rs 2 per litre on unblended diesel till 31st March 2028 |
| 3. | 03/2026-Central Excise, dated 1st February 2026 | Seeks to rescind notification No. 5/2023-Central Excise dated 1.2.2023 |
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