Govt Adds Air Canada to Customs Duty Exemption List Effective July 1, 2025
Air Canada will now get customs duty exemptions on aircraft imports into India from 1 July 2025, reducing its operational costs and easing logistics
The Ministry of Finance issued Notification No. 32/2025-Customs dated 30 June 2025, granting customs duty exemptions to Air Canada under India’s existing import frameworks effective from 1 July 2025.
The notification, released by the Department of Revenue under Section 25(1) of the Customs Act, 1962, amends Notification No. 130/2010-Customs dated 23 December 2010, which outlines airlines eligible for customs duty exemptions on the import of spares, consumables, and aircraft-related equipment required for operations and maintenance.
Under this amendment, Air Canada has been added to the list of approved airlines, allowing it to import eligible goods into India without payment of applicable customs duties, aligning with India’s policy to facilitate international air connectivity and operational ease for foreign carriers operating in the country.
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The addition, recorded as Serial No. 48 in the exemption list, explicitly names “Canada – Air Canada” as an eligible entity. This move is expected to reduce operational costs for Air Canada in India while streamlining maintenance and turnaround operations.
The notification comes into force on 1 July 2025, ensuring customs authorities and importers have clarity for application of exemptions on Air Canada consignments arriving in India from that date.
According to the note, Notification No. 130/2010-Customs has undergone several amendments to accommodate evolving aviation operational requirements, with the last amendment made via Notification No. 45/2022-Customs dated 31 August 2022 before this update.
Impact: The inclusion of Air Canada in India’s customs duty exemption list means the airline can now import aircraft parts, tools, and other operational supplies into India without paying customs duties from 1 July 2025. This will lower Air Canada’s operational and maintenance costs for flights to and from India, helping it improve efficiency and service reliability while managing expenses better.
It also reflects India’s commitment to supporting international airlines operating in the country by reducing regulatory and financial burdens. For customs brokers, logistics service providers, and compliance teams, this change will require updates to import documentation and clearance processes to ensure the exemption is correctly applied, enabling smoother clearance and reducing delays at Indian airports.
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