India has zeroed import duty on 40 petrochemicals. CBIC Notification 12/2026-Customs, effective 2 April 2026, grants NIL Basic Customs Duty (BCD) on 40 specific petrochemical products until 30 June 2026. It is a 90-day relief window triggered by supply chain disruptions from the West Asia conflict.
What is CBIC Notification 12/2026-Customs?
CBIC Notification No. 12/2026-Customs (G.S.R. 246(E)), dated 1 April 2026, exempts 40 listed petrochemical products from Basic Customs Duty when imported into India. The notification is issued under Section 25(1) of the Customs Act, 1962, in public interest.
A companion notification, No. 13/2026-Customs, simultaneously reduces Agriculture Infrastructure and Development Cess (AIDC) to NIL specifically for ammonium nitrate (HSN 3102 30 00).
The exemptions took effect from 2 April 2026 and expire on 30 June 2026. Roughly 90 days.
Why now? The West Asia conflict disrupted global petrochemical supply chains through late 2025 and early 2026, tightening supply and raising input costs for Indian manufacturers across plastics, adhesives, coatings, textiles, and agrochemicals. This duty relief is meant to ease raw material costs during the disruption.
Revenue impact: CBIC estimates the combined BCD and AIDC foregone at approximately ₹1,800 crore for the exemption window.
Who qualifies for the NIL BCD exemption?
Any importer bringing these 40 products into India qualifies. There is no restricted end-user condition, no registration requirement, and no bond or post-importation follow-up specified in the notification.
The qualification criteria are straightforward:
- The product must match a listed HSN code exactly
- The import must be into India
- The exemption applies only until 30 June 2026
This is an unconditional, universal exemption. Unlike end-use provisions or EPCG-style obligations, there are no post-import duties, no verification certificates, and no compliance trail required after clearance. File correctly, claim the NIL BCD at the time of Bill of Entry, and the goods clear without customs duty.
The 40 petrochemical products: full HSN list
The complete list as notified under G.S.R. 246(E), dated 1 April 2026.
Petrochemical intermediates
| Product | HSN Code |
|---|---|
| Anhydrous ammonia | 2814 10 00 |
| Toluene | 2902 30 00 |
| Styrene | 2902 50 00 |
| Dichloromethane (methylene chloride) | 2903 12 00 |
| Vinyl chloride monomer | 2903 21 00 |
| Methanol (methyl alcohol) | 2905 11 00 |
| Isopropyl alcohol | 2905 12 20 |
| Monoethylene Glycol (MEG) | 2905 31 00 |
| Phenol | 2907 11 10 |
| Acetic acid | 2915 21 00 |
| Vinyl acetate monomer | 2915 32 00 |
| Purified Terephthalic Acid (PTA) | 2917 36 00 |
| Ethylenediamine | 2921 21 00 |
| Diethanolamine | 2922 11 10 |
| Monoethanolamine | 2922 11 90 |
| Toluene di-isocyanate (TDI) | 2929 10 20 |
| Formaldehyde | 2912 11 00 |
Fertilisers and industrial chemicals
| Product | HSN Code |
|---|---|
| Ammonium nitrate | 3102 30 00 |
| Linear alkylbenzenes (LABS) | 3817 00 11 |
Polymers
| Product | HSN Code |
|---|---|
| Polymers of ethylene (including EVA) | 3901 |
| Polypropylene (PP) | 3902 10 00 / 3902 30 00 / 3902 90 00 |
| Polystyrene (PS) | 3903 11 00 / 3903 19 10 / 3903 19 90 |
| Styrene-acrylonitrile (SAN) | 3903 20 00 |
| Acrylonitrile-butadiene-styrene (ABS) | 3903 30 00 |
| Polyvinyl Chloride (PVC) | 3904 10 10 / 3904 10 20 / 3904 10 90 |
| Polytetrafluoroethylene (PTFE) | 3904 61 00 |
| Poly(vinyl acetate) | 3905 12 / 3905 19 |
| Poly(vinyl alcohol) (PVA) | 3905 30 00 |
| Poly(methyl methacrylate) (PMMA) | 3906 10 10 / 3906 10 90 |
| Polyoxymethylene (POM / acetal) | 3907 10 00 |
| Polyols | 3907 29 |
| Polyether Ether Ketone (PEEK) | 3907 29 90 |
| Epoxy resins | 3907 30 10 |
| Polycarbonates (PC) | 3907 40 00 |
| Alkyd resins | 3907 50 00 |
| Poly(ethylene terephthalate) (PET) chips | 3907 61 / 3907 69 |
| Unsaturated polyester resins | 3907 91 20 |
| Poly(butylene terephthalate) (PBT) | 3907 91 50 |
| Urea formaldehyde resin | 3909 10 10 |
| Melamine formaldehyde resin | 3909 20 10 |
| Phenol formaldehyde resin | 3909 40 20 |
| Polyurethanes (PU) | 3909 50 00 |
| Polyphenylene sulphide (PPS) | 3911 90 90 |
| Polybutadiene | 4002 |
| Styrene-butadiene rubber (SBR) | 4002 |
How to claim the NIL BCD at the time of filing
No special procedure exists for this exemption. The standard Bill of Entry filing process applies, with one critical detail handled correctly.
Step 1: Confirm the HSN code matches exactly
The exemption is tied to specific HSN codes listed in the notification. Before filing, verify the 8-digit HSN code against the table above. A misclassification, even by one digit, will reject the NIL rate and the full BCD will apply.
This is where freight forwarders and customs brokers carry the most risk. If your client's product sits at the margin between two HSN codes, get a ruling or a pre-filing classification check before the cargo arrives.
Step 2: Enter the correct BCD rate in the Bill of Entry
In ICES/ICEGATE, enter the applicable notification number 12/2026-Customs and ensure the BCD is entered as NIL for the correctly classified item. IGST, SWS, and other applicable cesses still apply. NIL BCD does not mean zero duty overall.
Step 3: Standard document pack
No additional bonds, certificates, or end-use declarations are required. Your Bill of Entry should carry:
- Commercial invoice
- Bill of Lading / Airway Bill
- Packing list
- Certificate of Origin (to establish preferential eligibility if separately claimed)
- The applicable notification reference (12/2026-Customs) in the duty calculation field
Step 4: Pay applicable duties (non-BCD components)
Even with NIL BCD, the import will attract:
- IGST at the standard rate on the assessable value
- Social Welfare Surcharge (SWS), calculated on BCD (which is NIL here, so SWS = 0)
- AIDC: NIL under companion Notification 13/2026 for ammonium nitrate; standard rate applies for all other items unless separately exempted
What about AIDC on ammonium nitrate?
Notification 13/2026-Customs sets AIDC to NIL for ammonium nitrate (HSN 3102 30 00) for the same window. Ammonium nitrate imports attract zero customs duty (both BCD and AIDC) during the exemption period. No other product gets AIDC relief under this notification.
What happens after 30 June 2026?
This is the most critical compliance planning question for importers and CHAs.
The exemption expires at end of day, 30 June 2026.
From 1 July 2026, the standard BCD rate for each product reverts to whatever the regular tariff schedule specifies. Most of these petrochemical intermediates and polymers attract BCD in the 5–10% range, though specific product-wise rates vary.
Planning steps before June 30:
-
Front-load critical imports if supply chains allow. Any cargo that arrives before 30 June 2026 and clears before the expiry qualifies. Arrival at the Indian port is the operative date, not the Bill of Entry filing date, though the filing must be completed within 30 days of arrival under the Customs Act.
-
Review open contracts. If you have long-term supply contracts with price agreed on a delivered duty paid basis, your supplier may absorb the re-imposed duty from July 1. Revisit those contracts now.
-
Watch for renewal. CBIC has issued this as a time-bound, public interest exemption. There is no guarantee of extension, but industry bodies (including CHEMEXCIL and PCPIR associations) have publicly lobbied for one given ongoing West Asia supply constraints. Monitor CBIC's website and gazette notifications for any renewal or phase-out notice.
-
Classify correctly before the window closes. Post-June 30, wrong classification that was masked by NIL BCD will immediately create duty recovery notices. Use the remaining window to verify classifications for all 40 product categories.
-
No grace period. There is no announcement of a phase-out or transitional rate. The NIL rate applies up to and including 30 June 2026; from 1 July 2026, the full BCD applies without announcement.
Why this exemption matters for India's petrochemical sector
India's petrochemical industry, worth over $45 billion and growing at roughly 10% annually, imports a significant share of its feedstock. Disruptions in West Asia directly affect the paraxylene, ethylene, and methanol supply chains that Indian polymer and chemical manufacturers depend on.
The duty relief does two things:
- It reduces input costs for domestic manufacturers of plastics, adhesives, synthetic fibres, coatings, and agrochemical formulations during a supply shock
- It signals that CBIC can move fast on tariff interventions when industry needs it
For freight forwarders and CHAs, this creates a short-term spike in import volume for these 40 product categories. The operational risk is misclassification, particularly for products where the 8-digit HSN code is borderline (e.g., PET chips vs. bottle-grade PET, or polyurethane resins vs. adhesives with similar chemical profiles).
Frequently asked questions
Which petrochemical products have zero import duty in India in 2026?
Forty petrochemical products, including methanol, MEG, PTA, phenol, acetic acid, vinyl chloride monomer, TDI, and a wide range of polymers including PVC, PET, ABS, and polypropylene, carry NIL Basic Customs Duty from 2 April to 30 June 2026 under CBIC Notification 12/2026-Customs.
Which HSN codes are covered by the NIL duty exemption?
The exemption covers HSN codes including 2814 10 00 (ammonia), 2902 30 00 (toluene), 2902 50 00 (styrene), 2905 11 00 (methanol), 2905 31 00 (MEG), 2917 36 00 (PTA), 3901-4002 (all polymer families), and others across intermediates, polymers, and specialty chemicals. The complete list is in the table above.
What is the exact duty rate for these petrochemicals?
Basic Customs Duty is NIL for all 40 listed products from 2 April to 30 June 2026. IGST and applicable cesses (other than AIDC on ammonium nitrate, which is also NIL) continue to apply. The nil BCD is unconditional: no end-use bond, no post-import compliance required.
How do I file for this exemption when clearing customs?
File a standard Bill of Entry (BoE) for Home Consumption through ICEGATE. Enter HSN code, reference CBIC Notification 12/2026-Customs, and enter BCD as NIL. No additional documents, bonds, or certificates are required. IGST is paid on the assessable value as usual. For ammonium nitrate, also reference Notification 13/2026-Customs for NIL AIDC.
What happens to petrochemical imports after the exemption expires on 30 June 2026?
From 1 July 2026, the NIL BCD ends and standard BCD rates apply, typically 5–10% depending on the product. There is no transition period or announced phase-out. Importers with cargo arriving before 30 June 2026 qualify for the exemption regardless of when the Bill of Entry is filed, provided arrival is within the 30-day window. Industry lobbying for an extension is ongoing; check CBIC gazette for updates.
Don't let misclassification cost you the exemption
Getting the HSN code right is the most important step in claiming this exemption. An incorrect code, even by one digit, means the NIL rate is rejected and full BCD applies from day one of filing. At scale, a single misclassified shipment can mean lakhs in unintended duty.
Eximoz automates HS code classification with multi-model AI trained on Indian customs tariff data. Pull up a product description, get the correct 8-digit HSN, verify the applicable duty rate, and file with confidence.
