On April 1, 2026, the Government of India, under the Customs Act of 1962, issued Notification No. 12/2026-Customs (G.S.R. 246[E]) in the Official Gazette of India, announcing a full exemption from customs duties on a wide range of chemicals when imported into India. The measure aims to stabilize domestic supply and alleviate cost pressures in the petrochemical industry chain. The policy takes effect from April 2, 2026, and remains valid until and including June 30, 2026.
The duty exemption covers a broad range of product categories, including petrochemicals, intermediates, and polymers, which are used in many important sectors such as coatings, pesticides, solvents, packaging, automobiles, construction chemicals, and textiles. A total of 40 substances are exempted, as listed below:
- Anhydrous ammonia
- Toluene
- Styrene
- Dichloromethane
- Vinyl chloride monomer
- Methanol
- Isopropyl alcohol
- Monoethylene glycol (MEG)
- Phenol
- Acetic acid
- Vinyl acetate monomer
- Purified terephthalic acid (PTA)
- Ethylenediamine
- Diethanolamine and monoethanolamine
- Toluene diisocyanate (TDI)
- Ammonium nitrate
- Linear alkylbenzene
- Polymers of ethylene (including ethylene-vinyl acetate copolymers)
- Polypropylene
- Polystyrene
- Styrene-acrylonitrile copolymer (SAN)
- Acrylonitrile-butadiene-styrene copolymer (ABS)
- Polyvinyl chloride (PVC)
- Polytetrafluoroethylene (PTFE)
- Polyvinyl acetate
- Polyvinyl alcohol
- Polymethyl methacrylate (PMMA)
- Polyoxymethylene (POM, acetal resin)
- Polyol
- Polyether ether ketone (PEEK)
- Epoxy resin
- Polycarbonate (PC)
- Alkyd resin
- Polyethylene terephthalate (PET) chips
- Unsaturated polyester resin
- Polybutylene terephthalate (PBT)
- Formaldehyde, urea formaldehyde resin, melamine formaldehyde resin, phenolic resin
- Polyurethane
- Polyphenylene sulfide (PPS)
- Polybutadiene rubber, styrene-butadiene rubber
Additionally, under Notification No. 13/2026-Customs (G.S.R. 247(E)) issued on the same day, the Government of India reduced the Agriculture Infrastructure and Development Cess (AIDC) on ammonium nitrate to zero. This measure also takes effect from April 2, 2026, and remains valid until and including June 30, 2026.
The Indian government aims to alleviate cost pressures on the manufacturing sector against the backdrop of global supply chain disruptions. Although the policy is only in effect until June 30, 2026, it is expected to significantly enhance the feasibility of imports in the short term, alleviate local supply shortages, and bring tangible cost reductions to related industries.
