The Ministry of Finance (Department of Revenue) has issued Notification No. 21/2026-Customs dated 9 June 2026, amending the existing customs exemption framework under Notification No. 62/2022-Customs. The amendment introduces a new serial number, 825A, in Table I of the principal notification, extending a nil rate of Basic Customs Duty (BCD) to goods falling under tariff item 26020010.
The notification has been issued under the powers conferred by Section 25(1) of the Customs Act, 1962, which allows the Central Government to exempt specified goods from customs duties in the public interest.
What Has Changed?
The amendment inserts the following entry after Serial No. 825 in Table I of Notification No. 62/2022-Customs:
| S. No. | Tariff Item | Description | Customs Duty Rate |
|---|---|---|---|
| 825A | 26020010 | All goods | 0.0% |
This means that imports classified under tariff heading 26020010 will now attract zero customs duty, providing a direct benefit to importers dealing in such goods.
Impact on Importers
The introduction of Entry 825A is expected to:
- Reduce import costs for goods covered under tariff item 26020010.
- Improve competitiveness for industries dependent on these imports.
- Align customs duty structures with the government's trade and industrial policy objectives.
- Facilitate smoother sourcing of raw materials or commodities falling within the specified tariff classification.
Importers should verify product classification carefully to ensure eligibility for the exemption and maintain appropriate documentation during customs clearance.
Background
Notification No. 62/2022-Customs serves as the principal customs exemption notification governing concessional and nil-rate duty benefits across various tariff items. The latest amendment adds another category of goods eligible for exemption and follows the last amendment made through Notification No. 14/2026-Customs dated 30 April 2026.
Conclusion
With the issuance of Notification No. 21/2026-Customs, the government has expanded the list of goods eligible for customs duty exemption by inserting Serial No. 825A for tariff item 26020010, prescribing a 0% customs duty rate. Businesses engaged in importing goods under this classification should review the notification and evaluate the potential cost benefits arising from the exemption.
Official copy of the notification is as follows
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