The Government has notified the Baggage Rules, 2026, replacing the earlier 2016 framework to align customs procedures with present-day travel patterns, rising global mobility, and changing economic realities. The reforms, introduced through multiple notifications issued on February 1, 2026, aim to simplify baggage clearance, enhance duty-free allowances, and introduce a modern digital declaration system.
The new rules come into force from February 2, 2026, and are positioned as a “citizen-friendly customs reform” intended to reduce disputes, streamline processing at airports, and improve ease of travel.
Revised Duty-Free Allowances Reflect Modern Travel
Under the updated regime, all passengers, including infants, may continue to bring used personal effects duty-free. However, the General Free Allowance (GFA) limits have been rationalised:
- ₹75,000 for Residents, Tourists of Indian Origin, and Foreigners holding a valid non-tourist visa
- ₹25,000 for Foreign Tourists
- ₹2,500 for Crew Members
Notably, passengers arriving through land borders will not be eligible for the General Free Allowance, though used personal effects remain exempt.
Televisions, firearms, gold or silver in non-ornamental form, and goods exceeding specified limits of alcohol and tobacco remain excluded from duty-free benefits under Annexure-I.
Jewellery Allowance Shifted to Weight-Based Criteria
In a significant simplification, jewellery allowances are now structured purely on weight rather than value caps:
- Female passengers residing abroad for over one year: Up to 40 grams duty-free
- Other eligible passengers: Up to 20 grams duty-free
Gold bullion and silver (other than ornaments) remain subject to import policy restrictions.
Temporary import certificates are available for jewellery brought for weddings or events, provided such items are re-exported.
Major Boost to Transfer of Residence (TR) Benefits
The Transfer of Residence framework has been modernised with enhanced aggregate value caps:
For Residents / Tourists of Indian Origin (based on stay abroad):
- 3–12 months: ₹1,50,000
- 1–2 years: ₹3,00,000
- More than 2 years: ₹7,50,000
For Foreign Professionals (based on intended stay in India):
- 6–12 months: ₹1,50,000
- 1–2 years: ₹3,00,000
- More than 2 years: ₹7,50,000
The rules merge earlier annexures into a unified rationalised list of permissible household articles, including items such as air conditioners, laptops, televisions, gaming consoles, robotic vacuum cleaners, massage chairs, and projectors, subject to one unit per category and overall caps.
Safeguards have been built in to address shortfall in stay requirements and prevent repeated misuse.
Digital Baggage Declaration and Automated Processing
The reform introduces electronic baggage declarations via ICEGATE and the Atithi mobile/web application. Passengers carrying dutiable or prohibited goods must file Form CBD-I electronically up to three days before arrival.
Declarations can be updated until the actual time of arrival. Minors’ declarations must be filed by guardians or family members.
Green and Red Channels continue, with mandatory Red Channel reporting for items such as gold bullion, drones, pets, firearms, and high-value currency.
Temporary Import & Export Certificates Streamlined
Passengers carrying valuables abroad are advised to obtain an Export Certificate (Form CBD-III) to ensure hassle-free re-import. The certificate remains valid until the first return to India or six months, whichever is earlier.
Similarly, tourists temporarily importing personal effects may obtain a Temporary Baggage Import Certificate (Form CBD-IV), valid until departure or six months.
Courier Export Reforms: Removal of ₹10 Lakh Cap
In a major reform under e-commerce facilitation, the Government has removed the ₹10 lakh value cap for commercial exports via courier mode (CSB-V), effective April 1, 2026.
This move is expected to significantly benefit MSMEs, start-ups, D2C brands, and artisan exporters by allowing shipments of any value through courier channels, eliminating the need to shift high-value consignments to traditional air cargo routes.
Return to Origin (RTO) Framework Introduced
To address warehouse congestion and unclaimed parcels, a new Return to Origin mechanism will allow uncleared international courier shipments to be sent back to the original foreign sender instead of being auctioned or destroyed.
The reform will reduce administrative burden, improve terminal efficiency, and create a predictable framework for logistics operators.
Simplified Handling of E-Commerce Returns
Recognising high return rates (20–25%) in online cross-border trade, Customs will introduce a risk-based automated verification system for returned goods. Returned parcels will be digitally matched with original export data, and only high-risk cases will undergo examination.
This reform is designed to prevent returned goods from being treated as fresh imports and to ease reverse logistics for exporters.
Fisheries Sector Reform: Duty Relief for Deep-Sea Catch
The Finance Bill, 2026 also proposes amendments to the Customs Act, 1962 to extend jurisdiction beyond territorial waters for Indian-flagged fishing vessels.
Fish caught in the Exclusive Economic Zone (EEZ) and High Seas by Indian vessels will receive duty-free treatment when landed at Indian ports and export treatment when landed abroad. This is aimed at boosting deep-sea fishing, improving coastal livelihoods, and strengthening seafood exports.
Focus on Ease of Doing Business and Trade Facilitation
Collectively, the reforms aim to:
- Enhance passenger convenience at international airports
- Promote Make in India through e-commerce exports
- Reduce logistics bottlenecks
- Simplify compliance through digital governance
- Encourage sustainable use of marine resources
With digital systems, rationalised allowances, and structured facilitation for professionals, exporters, and fishermen alike, the Customs reform package under Budget 2026 signals a decisive shift toward modern, technology-driven border management while balancing compliance and trade facilitation.
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