Govt Waives Customs Duty On Key Petrochemical Imports Till June 30, 2026

The government has announced a full exemption on customs duty for various important petrochemical products till June 30, 2026, as a temporary measure to address disruptions and input price pressures due to the ongoing conflict in West Asia. The intention is to ensure the availability of crucial raw materials for the country’s industries.

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Reason For Duty Exemption

The Finance Ministry has stated that the exemption has been introduced as part of relief measures to ensure the continued availability of key petrochemical supplies.

This decision has come in the wake of disruptions in global supply chains because of the West Asia conflict, which has increased the cost of inputs for Indian manufacturers.

Products Covered Under The Exemption

The exemption applies to a wide range of petrochemical feedstocks, intermediates, and base chemicals. These include anhydrous ammonia, toluene, styrene, methanol, isopropyl alcohol, acetic acid, phenol, and monoethylene glycol (MEG), as per official data.

It also covers monomers and intermediates such as vinyl chloride monomer, vinyl acetate monomer, purified terephthalic acid (PTA), ethylenediamine, toluene di-isocyanate, and linear alkylbenzenes.

Polymers And Specialty Materials Included

In addition to basic chemicals, the exemption extends to commonly used polymers and resins such as polyethylene, polypropylene, polystyrene, polyvinyl chloride (PVC), polyethylene terephthalate (PET) chips, polycarbonates, and epoxy resins.

Advanced materials, including acrylonitrile-butadiene-styrene (ABS), polyether ether ketone (PEEK), and polyphenylene sulfide (PPS), are also part of the list, according to the Finance Ministry.

Sectors Expected To Benefit

Industries dependent on petrochemicals such as plastics, packaging materials, textiles, pharmaceuticals, chemicals, and automotive parts are expected to benefit from reduced costs.

The government said the reduction in duties would be expected to help ease cost pressures across the supply chain and boost manufacturing in the run-up to the disruption.

Implementation Timeline

This exemption shall remain in force until June 30, 2026. This is a temporary measure aimed at dealing with the prevailing global uncertainties regarding the availability and pricing of petrochemical products.

This is part of the government’s measures aimed at ensuring the smooth operation of the domestic industry amidst the prevailing global conditions.