The Central Government, through the Ministry of Finance (Department of Revenue), has issued Notification No. 03/2026-Central Excise (N.T.) dated 30th June, 2026, amending the Central Excise Rules, 2017 in exercise of the powers conferred under section 37 of the Central Excise Act, 1944.
The amended rules are called the Central Excise (Second Amendment) Rules, 2026 and have come into force with immediate effect.
The notification amends Rule 18 and Rule 19 of the Central Excise Rules, 2017 by expanding the list of countries mentioned in the provisos to both rules. Wherever the provisos earlier referred to “Nepal, Bhutan, Bangladesh and Sri Lanka,” these words have now been substituted with “Nepal, Bhutan, Bangladesh, Sri Lanka, Maldives and Mauritius.”
Accordingly, both Maldives and Mauritius have been added to the list of countries covered under the provisos to Rule 18 and Rule 19.
Rule 18 deals with the rebate of duty on exported goods. It provides that where goods are exported, the Central Government may grant rebate of duty paid on excisable goods or on materials used in their manufacture or processing, subject to such conditions, limitations and procedures as may be specified by notification. The Explanation to Rule 18 defines “export” as taking goods out of India to a place outside India and also includes shipment of goods as provisions or stores for use on board a ship proceeding to a foreign port or supplied to a foreign-going aircraft.
Rule 19 governs the export of excisable goods without payment of duty. It permits excisable goods to be exported without payment of duty from a factory, warehouse or other approved premises. It also allows materials to be removed without payment of duty for use in the manufacture or processing of goods meant for export, subject to approval by the Principal Commissioner or Commissioner. Exports under Rule 19 remain subject to the conditions, safeguards and procedures specified by the Board through notification.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 03/2026-Central Excise (N.T.) | Dated: 30th June, 2026
G.S.R. 532(E).— In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby makes the following rules to amend the Central Excise Rules, 2017, namely:-
1. Short title and commencement.-
i. These rules may be called the Central Excise (Second Amendment) Rules, 2026.
ii. They shall come into force with immediate effect.
2. In the Central Excise Rules, 2017,
i. in rule 18, in the proviso, for the words “Nepal, Bhutan, Bangladesh and Sri Lanka”, the words “Nepal, Bhutan, Bangladesh, Sri Lanka, Maldives and Mauritius” shall be substituted;
ii. in rule 19, in the proviso, for the words “Nepal, Bhutan, Bangladesh and Sri Lanka”, the words “Nepal, Bhutan, Bangladesh, Sri Lanka, Maldives and Mauritius” shall be substituted.
[F. No. 190349/13/2026-TRU]
DHEERAJ SHARMA, Under Secy.
Note:- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 733(E), dated the 30th June, 2017 and last amended by notification No. 02/2026-Central Excise (N.T.) dated 26th March, 2026 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R. 203 (E), dated 26th March, 2026.
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Extract of Rule 18 and 19 of Central Excise Rules, 2017
18. Rebate of duty.-
Where any goods are exported, the Central Government may, by notification, grant rebate of duty paid on such excisable goods or duty paid on materials used in the manufacture or processing of such goods and the rebate shall be subject to such conditions or limitations, if any, and fulfilment of such procedure, as may be specified in the notification.
Explanation.- For the purposes of this rule, “export”, with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India and includes shipment of goods as provision or stores for use on board a ship proceeding to a foreign port or supplied to a foreign going aircraft.
19. Export without payment of duty.-
(1) Any excisable goods may be exported without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, as may be approved by the Principal Commissioner or Commissioner, as the case may be.
(2) Any material may be removed without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, for use in the manufacture or processing of goods which are exported, as may be approved by the Principal Commissioner or Commissioner, as the case may be.
(3) The export under sub-rule (1) or sub-rule (2) shall be subject to such conditions, safeguards and procedure as may be specified by notification by the Board.
