CBIC Slashes Import Duty on 40+ Chemicals, Plastics Raw Materials
CBIC has reduced import duty to nil on over 40 chemicals and plastic raw materials till June 30, 2026 to ease industry input costs.
The Central Board of Indirect Taxes and Customs (CBIC), under the Ministry of Finance, has granted a temporary reduction in import duties on several industrial goods. The notifications aim to reduce input costs for domestic industries by bringing down customs duty on key raw materials. Under Notification No. 12/2026-Customs, the government has reduced the basic customs duty to...
The Central Board of Indirect Taxes and Customs (CBIC), under the Ministry of Finance, has granted a temporary reduction in import duties on several industrial goods. The notifications aim to reduce input costs for domestic industries by bringing down customs duty on key raw materials.
Under Notification No. 12/2026-Customs, the government has reduced the basic customs duty to Nil on over 40 imported items. These include a wide range of chemicals, petrochemicals, and plastic raw materials used across industries.
The full list of goods covered includes:
- Anhydrous ammonia
- Toluene
- Styrene
- Dichloromethane (methylene chloride)
- Vinyl chloride monomer
- Methanol (methyl alcohol)
- Isopropyl alcohol
- Monoethylene glycol (MEG)
- Phenol
- Acetic acid
- Vinyl acetate monomer
- Purified terephthalic acid (PTA)
- Ethylenediamine
- Diethanolamine and monoethanolamine
- Toluene di-isocyanate
- Ammonium nitrate
- Linear alkylbenzenes
- Polymers of ethylene (including EVA)
- Polypropylene
- Polystyrene
- Styrene-acrylonitrile (SAN)
- Acrylonitrile-butadiene-styrene (ABS)
- Polyvinyl chloride (PVC)
- Polytetrafluoroethylene (PTFE)
- Poly (vinyl acetate)
- Poly (vinyl alcohol)
- Poly (methyl methacrylate)
- Polyoxymethylene (POM-acetal)
- Polyols
- Polyether ether ketone (PEEK)
- Epoxy resins
- Polycarbonates
- Alkyd resins
- Poly (ethylene terephthalate) (PET) chips
- Unsaturated polyester resins
- Poly (butylene terephthalate)
- Formaldehyde, urea formaldehyde, melamine formaldehyde, phenol formaldehyde
- Polyurethanes
- Polyphenylene sulphide (PPS)
- Polybutadiene and styrene-butadiene
In addition, Notification No. 13/2026-Customs grants Nil rate of Agriculture Infrastructure and Development Cess (AIDC) on ammonium nitrate, further reducing the cost burden on industries using this input.
Both notifications will:
- Come into force from April 2, 2026
- Remain valid till June 30, 2026
The government has issued these exemptions in public interest under the Customs Act, 1962. The move is expected to reduce production costs, improve supply of raw materials, and support industries such as plastics, chemicals, fertilizers, and manufacturing.
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