New Delhi, April 2: The central government has announced a complete waiver of custom duties on essential petrochemical products until June 30, 2026. This decision comes in light of ongoing tensions in West Asia and disruptions in the global supply chain, as stated by the Finance Ministry on Thursday.
The ministry indicated that this measure is a temporary and targeted relief aimed at ensuring the availability of crucial petrochemical raw materials in the country, reducing cost pressures on downstream industries, and stabilizing supply.
According to the government, several sectors that rely on petrochemical products, including plastics, packaging, textiles, pharmaceuticals, chemicals, auto components, and other manufacturing sectors, are expected to benefit from this exemption. It is also anticipated that consumers of final products will experience relief as a result.
Key petrochemical products included in this waiver are anhydrous ammonia, toluene, styrene, dichloromethane (methylene chloride), vinyl chloride monomer, methanol (methyl alcohol), isopropyl alcohol, monoethylene glycol (MEG), and phenol, among others.
Additionally, products such as acetic acid, vinyl acetate monomer, purified terephthalic acid (PTA), ammonium nitrate, ethylene polymers (including ethylene-vinyl acetate), epoxy resins, formaldehyde, urea-formaldehyde, melamine formaldehyde, and phenol-formaldehyde are also covered under this list.
In response to the impact of the Iran conflict and its effect on maritime trade, the central government had previously decided to restore rates and value caps for all eligible export products under the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme, effective March 23. This initiative aims to provide timely assistance to Indian exporters facing rising freight costs and trade risks associated with the war, particularly due to disruptions in maritime routes in the Gulf and West Asia.
Furthermore, the government has assured that India has sufficient stocks of crude oil, petrol, diesel, ATF, LPG, and LNG to manage short-term challenges. The country continues to maintain energy supplies from various global suppliers.