The Government of India has issued a new customs notification (12/2026) on March 31, 2026 introducing a significant duty waiver on select petrochemical products, marking a notable development for importers and downstream manufacturers. The measure is part of a broader effort to support domestic industry competitiveness, stabilize input costs, and ensure adequate supply of key feedstocks amid current Middle East crisis.
Under the notification, basic customs duty has been reduced or fully exempted on specified petrochemical intermediates and raw materials used in the production of plastics, synthetic fibers, and other industrial chemicals. The scope of the waiver is expected to cover critical inputs such as ethylene derivatives, propylene derivatives, and other key building blocks widely used across packaging, automotive, and consumer goods sectors.
The notification also outlines specific eligibility conditions, including end use requirements, documentation standards, and, in certain cases, time bound applicability. Importers may be required to furnish declarations or certificates confirming intended industrial use to qualify for the concessional rates. Companies should closely review product classifications under the Indian Customs Tariff to ensure accurate application of the revised duty structure.
From a compliance perspective, this development introduces both opportunities and risks. While the duty relief can significantly reduce landed costs, it also increases scrutiny on classification accuracy, valuation, and fulfilment of exemption conditions. Businesses should assess supply chain strategies, update internal controls, and ensure alignment between procurement, logistics, and customs compliance teams.
Overall, the measure signals India’s continued focus on strengthening its manufacturing ecosystem while managing inflationary pressures on key industrial inputs.
Please refer to the official customs notice (12/2026):
https://static.pib.gov.in/WriteReadData/specificdocs/documents/2026/apr/doc202642838401.pdf