CBIC Releases FAQs on Newly Introduced Customs Reforms under Finance Bill, 2026 [Read FAQs]

The Central Board ofIndirect Taxes and Customs (CBIC) has released an extensive set of Frequently Asked Questions (FAQs) explaining the newly introduced Customs reforms proposed under the Finance Bill, 2026.

Below are the key reforms explained in a simplified Question & Answer format.

1. Passenger-Centric Reforms – Baggage Rules, 2026

Q1. Why were the Baggage Rules revised?

The earlier Baggage Rules, 2016 had become outdated due to changes in travel patterns, global mobility, and market prices. The new Baggage Rules, 2026 aim to provide higher duty-free allowances, clarity in definitions, and smoother airport clearance.

Q2. What are the revised duty-free allowances?

• ₹75,000: Residents, tourists of Indian origin, and foreigners with non-tourist visas
• ₹25,000: Tourists of foreign origin
• Used personal effects remain fully duty-free
• No general free allowance for arrivals through land borders

Q3. What is the major change relating to jewellery?

The jewellery allowance has been simplified and made weight-based, removing outdated value caps:

• Female passenger: up to 40 grams duty-free
• Other passengers: up to 20 grams duty-free

Q4. What changes have been made in Transfer of Residence (TR)?

Higher duty-free value limits based on duration of stay abroad

• Simplified list of household items
• TR benefits extended and structured for foreign professionals coming to India
• Safeguards introduced to prevent misuse

2. Game-Changing Reforms for E-Commerce and Courier Trade

Q5. What is the most important reform for courier exports?

The ₹10 lakh value cap on commercial courier exports is proposed to be removed from 1 April 2026, allowing exports of any value through courier mode.

This reform will significantly benefit:

• MSMEs
• Start-ups and D2C brands
• Artisans and small exporters

Q6. What is “Return to Origin (RTO)” for courier shipments?

RTO allows unclaimed or uncleared international courier consignments to be sent back to the foreign sender instead of being auctioned or destroyed.

This will:

• Reduce congestion at courier terminals
• Lower logistics and administrative costs

Q7. How are e-commerce export returns being simplified?

A technology-driven, risk-based system will be introduced from 1 April 2026:

• Returned goods will be automatically linked with original export records
• Only high-risk cases will be examined
• Returned goods will not be treated as fresh imports for duty

3. Trust-Based Import Facilitation

Q8. What change has been made to Deferred Payment of Import Duty?

• Deferred payment period extended from 15 days to 30 days
• A new category of Eligible Manufacturer Importers introduced
• Improves cash-flow and working capital for manufacturers

Q9. What is Auto Goods Registration and Auto Out-of-Charge (Auto OOC)?

• Auto Goods Registration: Automatic registration of imported goods on arrival
• Auto OOC: System-driven release of goods without officer intervention, based on risk
• These measures reduce delays and physical interface.

4. Digital and System-Driven Governance

Q10. What is SWIFT 2.0?

SWIFT 2.0 is an upgraded Single Government EXIM Interface, integrating Customs and all Partner Government Agencies (PGAs) on a single digital platform for licences, permits, and approvals.

Q11. What is the Customs Integrated System (CIS)?

CIS is a proposed next-generation unified Customs IT platform offering:

• Single interface and single sign-on
• End-to-end digital processing
• Real-time dashboards and AI-assisted validation

5. Compliance-Friendly Legal Reforms

Q12. What is the change in voluntary compliance under Section 28?

In voluntary payment cases, the amount earlier termed as “penalty” will now be treated as a charge for non-payment of duty, removing stigma and encouraging early dispute resolution.

Q13. What relief has been provided in Advance Rulings?

• Validity of Advance Rulings extended from 3 years to 5 years
• Existing rulings can be extended without filing fresh applications
• Enhances certainty and reduces litigation
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