Duty-Free Petrochemical Imports have received another extension, offering much-needed relief to manufacturers that rely on imported raw materials.
The Central Government has extended the customs duty exemption on around 40 critical petrochemical products till July 15, preventing the relief from ending on June 30. The move ensures that Duty-Free Petrochemical Imports remain in place for another 15 days as industries continue to face supply disruptions and higher input costs caused by geopolitical tensions in West Asia.
The latest decision comes weeks after the government began reviewing whether the temporary exemption should continue beyond June. Industry stakeholders had urged the Centre to extend the relief, warning that the return of import duties could increase production costs and affect the availability of key raw materials used across several sectors. The government has now confirmed the extension through an official notification.
The customs duty exemption was first introduced on April 2, 2026, as a temporary measure to help industries deal with supply chain disruptions triggered by the conflict in West Asia. The exemption covered nearly 40 critical petrochemical products, allowing them to be imported without paying customs duty.
The relief was originally scheduled to end on June 30. However, after reviewing market conditions and industry feedback, the government decided to continue the exemption until July 15.
The extension is expected to:
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The extension is likely to benefit several sectors that depend heavily on imported petrochemical raw materials. These include:
Industry representatives had earlier expressed concerns that restoring customs duties from July 1 could raise production costs and impact business operations. The latest extension provides companies with additional time while the government continues to monitor the supply situation.
The extension reflects the government's continued focus on maintaining stable supplies of essential industrial inputs. Global supply chains remain under pressure due to ongoing geopolitical tensions, making imported petrochemical products more expensive and less predictable.
By keeping customs duty exemption, petrochemical imports, and critical petrochemical products under the relief scheme for another 15 days, the government aims to reduce cost pressures on manufacturers and support domestic production.
Although the extension is temporary, it offers immediate certainty to businesses that depend on imported feedstock. Industry will now closely watch whether the government allows the exemption to expire after July 15 or announces another extension based on market conditions and supply availability.
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