To safeguard the domestic industry from supply chain disruptions, the government in a “temporary and targeted relief” had exempted import of critical petrochemical products from customs duty effective April 2.
Customs duty was cut to ‘nil’ across 40 different products, including Anhydrous Ammonia, Toluene, Styrene, Vinyl chloride monomer, and others.
Read More: India to allow import of 3.78 lakh UK cars at concessional duty in first 15 years of trade pact
The duty exemption, which is valid till June 30, was intended to benefit sectors dependent on petrochemical feedstock and intermediates such as plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, other manufacturing segments.
Officials said associated revenue consideration will have to be considered while deciding on whether the import duty exemption would be extended.
“A decision would be taken after analysing the evolving situation around West Asia and cargo movement via Strait of Hormuz,” the official told PTI.The goods on which the customs duty have been exempted include Methanol, Anhydrous ammonia, Toluene, Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Poly butadiene, Styrene butadiene and Unsaturated polyester resins.
The government has set a customs revenue target of Rs 2.71 trillion in the current fiscal, compared to Rs 2.64 trillion in FY26.
Read More: From Oman to Tanzania: How the Iran war is redrawing India’s trade map
The war in West Asia and the effective blockade of the Strait of Hormuz has raised prices of crude oil and food, fertiliser imports. Also, supplies of raw materials have been impacted as movement of cargoes via the Strait has fallen significantly.