CUSTOM DUTY EXEMPTION ON PETROCHEMICALS
The Government of India has granted full customs duty exemption (0% rate) on ~40 critical petrochemical products and polymers from April 2, 2026, to June 30, 2026.
This temporary, time-bound relief aims to combat supply chain disruptions and stabilize costs for downstream industries like plastics, textiles, and pharma during the West Asia conflict.
WHAT ARE PETROCHEMICALS?
Petrochemicals are chemical compounds derived from petroleum (crude oil) and natural gas.
They serve as essential building blocks for countless modern products, including plastics, fertilizers, synthetic fibers, detergents, and rubber.
WHERE & HOW ARE THEY PRODUCED?
Produced in refineries through processes like cracking and distillation, they are fundamental to both industrial manufacturing and consumer goods.
MORE DETAILS
- Sources: Primarily made from hydrocarbons found in crude oil and natural gas.
- Main Types: The two most common classes are olefins (ethylene, propylene) and aromatics (benzene, toluene, xylene)
- Common Uses: They are used to create plastics, packaging, clothing, digital devices, medical equipment, tires, solar panels, and detergents.
- Process: Raw materials are processed in refineries via fractional distillation and cracking to produce useful chemical compounds.
EXAMPLES & PRODUCTS
- Plastics: Polyethylene (PE) and Polypropylene (PP) are used for packaging, containers, and pipes.
- Synthetic Fibers: Polyester and nylon for textiles.
- Rubber: Synthetic rubber for tires.
- Chemicals: Ammonia for fertilizers, and various solvents.
- Bitumen: Used for asphalt in road construction.
KEY DETAILS OF THE EXEMPTIONS
- Targeted Products: Covers feedstocks, intermediate chemicals, and polymers such as methanol, toluene, styrene, acetic acid, PVC, polypropylene, polyols, and polyethylene terephthalate (PET) chips.
- Goal: To ensure consistent supply of raw materials and mitigate rising import costs.
- Affected Sectors: Plastics, packaging, textiles, pharmaceuticals, automotive components, and chemical manufacturing.
SPECIFIC ITEMS COVERED
- Upstream & Intermediates: Anhydrous ammonia, Methanol, Toluene, Styrene, Vinyl Chloride Monomer (VCM), Monoethylene Glycol (MEG), Phenol, Vinyl Acetate Monomer (VAM), Purified Terephthalic Acid (PTA).
- Polymers & Resins: Polypropylene (PP), Polyvinyl Chloride (PVC), Polystyrene (PS), Polycarbonates (PC), Epoxy Resins, Polyurethanes, PET chips.
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