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Union Budget 2026-27 - Finance Bill, 2026
(a) The First Schedule to the Customs Tariff Act, 1975 is proposed to be amended to carry out changes as under-
A. | Modification in Tariff rate (to be effective from 02.02.2026) * [Clause 136(a) of the Finance Bill, 2026] *Will come into effect immediately through a declaration under the Provisional Collection of Taxes Act, 2023 | Rate of Basic Customs Duty | ||
S. No. | Heading, sub-heading, tariff item | Commodity | From (per cent) | To (per cent) |
MSME sector | ||||
1. | 6601 91 00, 6601 99 00 | Umbrellas (other than garden umbrellas) | 20% | 20% or Rs. 60 per piece, whichever is higher |
2. | 6603 20 00, 6603 90 10, 6603 90 90 | Parts, trimmings and accessories of articles of heading 6601 to 6602 | 10% | 10% or Rs. 25 per kg., whichever is higher |
B. | Decrease in Tariff rate (to be effective from 01.04.2026) [Clause 136(b) of the Finance Bill, 2026] | Rate of Basic Customs Duty | ||
1. | 9804 | All dutiable goods, imported for personal use | 20% | 10% |
C. | Tariff rate changes (without any change in effective rate of duty) [to be effective from 01.05.2026, unless otherwise specified] * [Clause 136(c) of the Finance Bill, 2026] *Note: 1. The current applied rate of Basic Customs Duty on these commodities operate through their respective exemption/concessional duty notification(s). Such corresponding entries would be omitted from the concerned notification(s) with effect from 01.05.2026, as the same would operate through the Customs Tariff Act, 1975, in the manner as detailed below. It is an exercise for simplification of the Customs tariff structure and applicable Basic Customs Duty rate on these items would remain unchanged. 2. Heading and sub-heading referred in column (2) shall include all tariff items under such heading or sub- heading. 3. The said changes are to be read with consequent amendments related to Social Welfare Surcharge (SWS) and Agriculture Infrastructure and Development Cess (AIDC). | Rate of Duty | ||
S. No. | Heading, sub-heading tariff item | Commodity | From | To |
(1) | (2) | (3) | (4) | (5) |
1. | 0207 25 00, 0207 27 00 | Meat and edible offal of turkeys, frozen | 30% | 5% |
2. | 0306 36 60 | Artemia | 5% | Nil |
3. | 0511 91 40 | Artemia cysts | 5% | Nil |
4. | 0802 11 00 | Almonds, in shell | Rs.42 per kg | Rs.35 per kg |
5. | 0802 12 00 | Almonds, shelled | Rs.120 per kg | Rs. 100 per kg |
6. | 0802 31 00 | Walnuts, in shell | 120% | 100% |
7. | 1209 (other than those falling under sub headings 1209 91 and 1209 99) | Seeds, fruit and spores, of a kind used for sowing | 30% | 15% |
8. | 1505 | Wool grease and fatty substances derived therefrom (including lanolin) | 30% | 15% |
9. | 2008 19 21, 2008 19 22, 2008 19 29, 2008 19 91 | Makhana, other roasted nuts and seeds | 150% | 30% |
10. | 2008 19 92 | Other nuts, otherwise prepared or preserved | 150% | 30% |
11. | 2309 90 31 | Prawn and shrimps feed | 15% | 5% |
12. | 2504 | Natural graphite | 5% | 2.5% |
13. | 2505 | Natural sands of all kinds, whether or not coloured, other than metal bearing sands of chapter 26 of the Customs Tariff Act, 1975 | 5% | Nil |
14. | 2506 | Quartz (other than natural sands); quartzite, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape | 5% | 2.5% |
15. | 2530 90 91 | Strontium sulphate (natural ore) | 5% | Nil |
16. | 2701, 2702, 2703 | Coal; briquettes, ovoids and similar solid fuels manufactured from coal; Lignite, whether or not agglomerated, excluding jet; Peat (including peat litter), whether or not agglomerated | 5% | 2.5% |
17. | 2709 00 10 | Petroleum crude | 5% | Re 1 per tonne |
18. | 2804 50 20 | Tellurium | 5% | Nil |
19. | 2804 61 00 | Silicon, containing by weight not less than 99.99% of silicon | 5% | Nil |
20. | 2804 69 00 | Silicon, other | 5% | Nil |
21. | 2804 90 00 | Selenium | 5% | Nil |
22. | 2805 30 00 | Rare-earth metals, scandium and yttrium, whether or not intermixed or inter alloyed | 5% | Nil |
23. | 2809 20 10 | Phosphoric Acid | 7.5% | 5% |
24. | 2811 22 00 | Silicon dioxide | 7.5% | 2.5% |
25. | 2816 40 00 | Oxides, hydroxides and peroxides, of strontium or barium | 7.5% | Nil |
26. | 2822 00 10 | Cobalt oxides | 7.5% | Nil |
27. | 2822 00 20 | Cobalt hydroxides | 7.5% | Nil |
28. | 2822 00 30 | Commercial cobalt oxides | 7.5% | Nil |
29. | 2825 20 00 | Lithium oxide and hydroxide | 7.5% | Nil |
30. | 2825 30 | Vanadium oxides and hydroxides | 7.5% | Nil |
31. | 2825 60 10 | Germanium oxides | 7.5% | Nil |
32. | 2825 70 | Molybdenum oxides and hydroxides | 7.5% | Nil |
33. | 2825 80 00 | Antimony Oxides | 7.5% | Nil |
34. | 2825 90 20 | Cadmium oxide | 7.5% | Nil |
35. | 2827 35 00 | Chlorides of Nickel | 7.5% | Nil |
36. | 2827 39 30 | Strontium chloride | 7.5% | Nil |
37. | 2833 24 00 | Sulphates of Nickel | 7.5% | Nil |
38. | 2834 21 00 | Nitrates of potassium | 7.5% | Nil |
39. | 2836 91 00 | Lithium carbonates | 7.5% | Nil |
40. | 2836 92 00 | Strontium carbonate | 7.5% | Nil |
41. | 2910 20 00 | Methyloxirane (propylene oxide) | 5% | 2.5% |
42. | 2918 15 30 | Bismuth citrate | 7.5% | Nil |
43. | 3102 30 00 | Ammonium nitrate, whether or not in aqueous solution | 10% | 5% |
44. | 3801 | Artificial Graphite; colloidal or semi-colloidal graphite; preparations based on graphite or other carbon in form of pastes, blocks, plates or other semi- manufactures | 7.5% | 2.5% |
45. | 3808 93 30 | Gibberellic acid | 10% | 5% |
46. | 3904 | Polymers of vinyl chloride or of other halogenated olefins, in primary forms | 10% | 7.5% |
47. | 4906 | Plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, being originals drawn by hand; hand-written texts; photographic reproductions on sensitised paper and carbon copies of the foregoing | 10% | Nil |
48. | 5201 00 25 | Other cotton of staple length exceeding 32.0 mm | 5% | Nil |
49. | 7202 60 00 | Ferro-nickel | 2.5% | Nil |
50. | 7402 00 10 | Blister copper | 5% | Nil |
51. | 7802 | Lead waste and scrap | 5% | Nil |
52. | 7902 | Zinc waste and scrap | 5% | Nil |
53. | 8105 20 30 | Cobalt powders | 5% | Nil |
54. | 8419 89 12, 8419 89 13, 8419 89 14, 8419 89 15, 8419 89 16, 8419 89 17, 8419 89 19 | Reactors, columns or towers or chemical storage tanks | 10% | 7.5% |
NEW TARIFF LINES HAVE BEEN CREATED | ||||
S. No. | Chapter/ heading/sub- heading/tariff item mentioned in notification | Commodity | New tariff item being created w.e.f. 01.05.2026 | Rate of duty |
(1) | (2) | (3) | (4) | (5) |
55. | 0306 19 00 | Krill, frozen | 0306 19 10 | 15% |
56. | 0802 99 00 | Pecan Nuts | 0802 99 10 | 30% |
57. | 0810 40 00 | Cranberries, fresh | 0810 40 10 | 10% |
58. | 0810 40 00 | Blueberries, fresh | 0810 40 20 | 10% |
59. | 0811 90 | Cranberries, frozen | 0811 90 11 0811 90 91 | 10% |
60. | 0811 90 | Blueberries, frozen | 0811 90 12 0811 90 92 | 10% |
61. | 0813 40 90 | Cranberries, dried | 0813 40 30 | 10% |
62. | 0813 40 90 | Blueberries, dried | 0813 40 40 | 10% |
63. | 1207 99 90 | Shea Nuts | 1207 99 50 | 15% |
64. | 2008 93 00 | Cranberries, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included | 2008 93 10 | 5% |
65. | 2008 99 | Blueberries, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included | 2008 99 15 | 10% |
66. | 2106 90 | Other than compound alcoholic preparations of a kind used for manufacture of beverages, of an alcoholic strength by volume exceeding 0.5% vol., determined at 20 degrees centigrade | 2106 90 (other than 2106 90 51) | 50% |
67. | 2202 99 | Cranberry products | 2202 99 21, 2202 99 31, 2202 99 91 | 10% |
68. | 2529 22 00 | Acid grade fluorspar containing by weight more than 97% of calcium fluoride | 2529 22 10 | 2.5% |
69. | 2615 90 | Hafnium ores and concentrates | 2615 10 10 | Nil |
70. | 2841 | Ammonium metavanadate | 2841 90 10 | 2.5% |
71. | 29 | Gibberellic acid | 2932 20 40 | 5% |
72. | 29 | Triethyl orthoformate | 2915 90 96 | 5% |
73. | 29 | Diethyl malonate | 2917 19 22 | 5% |
74. | 29 | DL-2 Aminobutanol | 2922 19 30 | 5% |
75. | 29 | Aceto butyrolactone | 2932 20 50 | 5% |
76. | 29 | Artemisinin | 2932 99 30 | 5% |
77. | 29 | Thymidine | 2934 99 50 | 5% |
78. | 3302 10 | Mixtures of odoriferous substances of a kind used in food or drink industries other than compound alcoholic preparations of a kind used for manufacture of beverages, of an alcoholic strength by volume exceeding 0.5% vol., determined at 20 degrees centigrade | 3302 10 19, 3302 10 99 | 10% |
79. | 4104 11 00, 4104 19 00, 4105 10 00, 4106 21 00, 4106 31 00, 4106 91 00 | Wet blue leather (hides and skin) | 4104 11 10, 4104 19 10, 4105 10 10, 4106 21 10, 4106 31 10, 4106 91 10 | Nil |
80. | 4702 | Rayon grade wood pulp | 4702 00 10 | 2.5% |
81. | 4823 90 90 | All goods other than kites | 4823 90 90 (kites fall under new tariff item 4823 90 40) | 10% |
82. | 8101 99 90 | Tungsten (wolfram) bars and rods, other than those obtained simply by sintering, profiles, plates, sheets, strip and foil | 8101 99 20 | 5% |
83. | 8415 90 00 | All goods other than indoor or outdoor units of split-system air conditioner | 8415 90 90 | 10% |
84. | 8421 99 00 | All goods other than Reverse Osmosis (RO) membrane element for household type filters | 8421 99 90 | 7.5% |
85. | 8507 90 | Battery separators | 8507 90 20 | 5% |
86. | 8529 10 99, 8529 90 90 | Parts suitable for use solely or principally with the apparatus of headings 8525, 8526 or 8527 | 8529 10 93, 8529 90 30 | 10% |
87. | 8609 00 00 | Refrigerated containers | 8609 00 10 | 5% |
(b) In addition to the above, the First Schedule to the Customs Tariff Act, 1975 has also been amended to create new tariff items which will, inter-alia, help in better product identification; getting actual transaction data of precursor chemicals and help in their effective monitoring; facilitating, tracking exports and deciding policy measures for plant-based extract products. These changes will be effective from 1.05.2026, unless otherwise specified.
Full Text:
Customs tariff amendments adjust basic customs duty rates, create new tariff lines, and reclassify import items effective Feb-May 2026. The First Schedule to the Customs Tariff Act, 1975 is amended to change Basic Customs Duty rates and to create new tariff items: immediate BCD increases effective 02.02.2026 (via provisional declaration), targeted BCD decreases effective 01.04.2026, and a comprehensive reclassification and rate migration from exemption notifications into the Tariff Act effective 01.05.2026, preserving applied duty levels while enabling better product identification and monitoring. of Press 'Enter' after typing page number.
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