Important Customs Updates for Passengers Travelling to India under Finance Bill, 2026

All passengers arriving in India on or after 2 February 2026 must follow the new Customs framework. These rules apply at all international airports, seaports, and land borders, subject to specific conditions. Passengers must understand these updates before travel to avoid delays, duty demands, or penalties.

New Baggage Rules, 2026: What Has Changed

The government has replaced multiple old baggage regulations with a single modern framework. The Customs Baggage (Declaration and Processing) Regulations, 2026 now govern passenger baggage.

These rules apply to:

• Passengers arriving in India
• Passengers departing from India
• Accompanied baggage
• Unaccompanied baggage

Higher Duty-Free Allowance for Passengers

One of the most important changes under the Finance Bill, 2026 relates to duty-free allowances for general goods.

Duty-Free Allowance for Air and Sea

Passengers arriving by air or sea are entitled to the following duty-free limits:

• Rs. 75,000 for Indian residents, Tourists of Indian origin, Foreign nationals holding non-tourist visas
• Rs. 25,000 for: Tourists of foreign origin

This allowance applies to goods other than used personal effects.

No General Allowance for Land Border Arrivals

Passengers arriving through land borders do not get any general duty-free allowance. Customs duty applies on all dutiable goods brought through land routes.

Clear and Weight-Based Gold Jewellery Rules

Gold jewellery rules have been revised to remove disputes and valuation issues.

The new rules introduce a clear weight-based system.

Duty-Free Gold Jewellery Limits

Eligible passengers can carry gold jewellery duty-free as follows:

• Female passengers: Up to 40 grams
• Passengers other than female: Up to 20 grams

These limits apply only to gold jewellery.

Items Not Covered Under Jewellery Allowance

The jewellery allowance does not apply to:

• Gold bars
• Gold coins
• Gold biscuits
• Gold bullion

These items attract Customs duty without exemption.

Conditions for Jewellery Exemption

The jewellery:

• Must form part of personal baggage
• Must be for personal use or gifts
• Must remain within the prescribed weight limit

Customs duty applies on excess jewellery beyond the permitted limit.

Used Personal Effects Remain Fully Exempt

These include:

• Clothes
• Footwear
• Watches
• Personal accessories

Customs officers assess whether the items qualify as personal effects. Commercial quantity or unused items do not qualify for exemption.

Mandatory Electronic Baggage Declaration

The new regulations place strong emphasis on electronic declaration.

Who Must Declare Baggage

Passengers must declare baggage if they carry:

• Dutiable goods
• Restricted goods
• Prohibited goods
• Jewellery beyond the free allowance

The declaration must occur before entering the Green Channel.

Mode of Declaration

Passengers must file baggage declaration:

• Through the ICEGATE portal
• Through the ATITHI mobile application

Manual declaration is allowed only in specific cases with officer approval.

Green Channel and Red Channel Rules

The distinction between Green and Red Channels remains important.

Green Channel

Passengers must use the Green Channel only if:

• They carry no dutiable goods
• They carry no prohibited items
• They remain within duty-free limits

Incorrect use of the Green Channel attracts penalties.

Red Channel

Passengers must use the Red Channel if:

• They carry goods beyond free allowance
• They carry jewellery beyond limits
• They carry restricted items

Red Channel declaration protects passengers from penalties.

Unaccompanied Baggage Rules

Passengers can send baggage separately from travel.

Unaccompanied baggage:

• Requires electronic declaration
• Requires supporting documents
• Gets assessed based on declared value

Customs clearance occurs at the chosen Customs station.

Transfer of Residence Benefits

Passengers shifting residence to India can claim Transfer of Residence benefits.

These benefits apply to:

• Indian residents returning after long stay abroad
• Persons of Indian origin returning to India
• Eligible foreign nationals shifting residence

The new rules simplify item lists and documentation. Customs duty applies on items not covered under Transfer of Residence allowances.

Currency Declaration Requirements

Passengers must declare foreign currency if:

• Total foreign exchange exceeds USD 10,000
• Foreign currency notes exceed USD 5,000

Indian currency beyond Rs. 25,000 requires declaration. False declaration leads to seizure and penalties.

Penalty for Violation of Baggage Rules

Any passenger who violates the baggage declaration requirements is liable to penalty under Section 158(2)(ii) of the Customs Act, 1962

Customs Baggage Regulations 2026

.

What Section 158(2)(ii) Provides

• A general penalty up to Rs. 50,000
• Applicable where no specific penalty is provided elsewhere under the Customs Act
• Applies to non-declaration of dutiable goods, false declaration, incorrect use of Green Channel, failure to comply with baggage regulations

The penalty amount:

• Is not automatic
• Is decided by the Customs officer based on facts of the case
• Can be imposed in addition to Customs duty

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