Customs Duty Waived on 40 Key Petrochemicals Products till 30 June 2026

Ministry of Finance, Department of Revenue, issued Notification No. 12/2026-Customs dated 1 April 2026 under section 25(1) of the Customs Act, 1962, granting exemption from basic customs duty (BCD) on specified goods when imported into India. The exemption applies to goods listed in the Table annexed to the notification, covering various chemicals, petrochemicals, and polymer products classified under specified tariff headings of the Customs Tariff Act, 1975. The notification provides that such goods will attract a nil rate of duty, effectively exempting them from BCD to the extent specified. The listed items include substances such as anhydrous ammonia, toluene, styrene, methanol, isopropyl alcohol, monoethylene glycol, phenol, acetic acid, purified terephthalic acid, and ammonium nitrate, among others. It also includes a wide range of polymer products such as polyethylene, polypropylene, polystyrene, PVC, polycarbonates, epoxy resins, polyurethanes, PET chips, and synthetic rubbers like styrene butadiene. Additionally, certain chemical compounds including formaldehyde-based resins and linear alkylbenzenes are covered. The exemption is applicable only when the goods are imported and fall under the specified tariff classifications. As per the notification, the exemption comes into effect from 2 April 2026 and will remain in force up to and including 30 June 2026. The notification has been issued on the basis that such exemption is considered necessary in the public interest.

Ministry of Finance

In a targeted relief, Government grants full customs duty exemption on critical petrochemical products in view of ongoing conflict in West Asia

Exemption will benefit sectors dependent on petrochemical feedstock and intermediates such as plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, other manufacturing segments and provide relief to consumers of final products

Posted On: 02 APR 2026 9:03AM by PIB Delhi

In light of the ongoing conflict in West Asia and the consequent disruptions in global supply chains, the Government of India has decided to provide full Customs Duty exemption on critical petrochemical products till 30^th June, 2026.

This measure has been taken as a temporary and targeted relief in order to ensure continued availability of critical petrochemical inputs for domestic industry, reduce cost pressures on downstream sectors, and safeguard supply stability in the country.

The exemption is expected to benefit a wide range of sectors dependent on petrochemical feedstock and intermediates, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing segments. This will also provide relief to consumers of final products.

The detailed list of the products is placed at Annexure.

Annexure

MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 12/2026-Customs | Dated: 1st April, 2026

G.S.R. 246(E).— In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of the description specified in column (3) of the Table below and falling within the heading, sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as are specified in the corresponding entries in column (2) of the said Table, when imported into India, from so much of the duty of customs leviable thereon under the said First Schedule as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table, namely:-

TABLE

2. This notification shall come into force on 2^nd April, 2026 and shall remain in force up to and inclusive of the 30th June, 2026.

[F. No. 354/1/2026- TRU]
DHEERAJ SHARMA, Under Secy.