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Centre Extends Zero Customs Duty on 40 Petrochemicals to July 15

The 15-day extension is intended to keep imported feedstocks available for manufacturers as authorities review shipping conditions in West Asia and customs revenue effects.

Overview

  • The Finance Ministry issued a notification on Tuesday, June 30, 2026, extending the full customs duty exemption on about 40 critical petrochemical products until July 15 to allow a smooth, non-disruptive transition.
  • The waiver covers roughly 40 items, including anhydrous ammonia, methanol, toluene, styrene, vinyl chloride monomer, dichloromethane, polybutadiene and unsaturated polyester resins.
  • The duty relief was first introduced on April 2 as a temporary measure after conflict-related shipping disruptions and a domestic order to refiners to prioritise LPG reduced local feedstock availability.
  • The government says the extension will help plastics, packaging, textiles, pharmaceuticals, chemicals and auto-parts makers avoid sudden input shortages and cost pressure while supply routes stabilise.
  • Officials framed the 15-day move as temporary and said they will review developments after July 15 because the waiver reduces customs receipts and must be balanced against the FY27 revenue target of about ₹2.71 lakh crore.