CBIC Releases FAQs on Newly Introduced Customs Reforms Under Budget 2026

The Government has introduced a comprehensive set of Customs reforms under Budget 2026 covering passenger baggage, courier exports, e-commerce returns, fisheries, and import facilitation. Below are the key Frequently Asked Questions (FAQs) explaining the major changes.

Baggage Rules, 2026

Q1. When do the new Baggage Rules come into force?
The Baggage Rules, 2026 and related regulations came into force from 2 February 2026.

Q2. What are the revised duty-free allowances?

₹75,000 – Residents, Tourists of Indian Origin, and Foreigners with valid non-tourist visas
₹25,000 – Foreign tourists
₹2,500 – Crew members
Used personal effects remain duty-free.

Q3. Is General Free Allowance available for land border arrivals?
No. Only used personal effects are permitted duty-free through land borders.

Q4. What is the new jewellery allowance?
For passengers residing abroad for more than one year:

40 grams (female passenger)
20 grams (other passengers)
The allowance is now weight-based, removing earlier value caps.

Q5. Can valuable goods be brought temporarily?
Yes. Temporary Baggage Import Certificates and Export Certificates can be obtained for valuables to ensure hassle-free re-import or re-export.

Q6. Is baggage declaration now digital?
Yes. Declarations must be filed electronically through ICEGATE or the Atithi mobile/web app if carrying dutiable or prohibited goods.

Courier & E-Commerce Reforms

Q7. What major change has been made for courier exports?
The ₹10 lakh value cap for commercial courier exports has been removed with effect from 1 April 2026, allowing exports of any value via courier mode.

Q8. Who benefits from removal of the value cap?
MSMEs, start-ups, D2C brands, artisans, and e-commerce exporters benefit from simplified high-value shipments.

Q9. What is Return to Origin (RTO)?
RTO allows uncleared international courier shipments to be returned to the original sender instead of being auctioned or destroyed.

Q10. How will e-commerce returns be handled?
A risk-based automated system will digitally match returned goods with original export records, reducing delays and compliance burdens.

Q11. Will export incentives need to be reversed for returned goods?
Yes, export benefits will be neutralised as per applicable laws.

Fisheries Sector Reform

Q12. What change is proposed for fish caught beyond territorial waters?
Fish caught by Indian-flagged vessels in the Exclusive Economic Zone (EEZ) and High Seas will receive duty-free treatment when landed in India.

Q13. What happens if such fish is landed abroad?
It will receive export treatment under applicable export policy.

Q14. Does this apply to foreign vessels?
No. The benefit applies only to Indian-flagged fishing vessels.

Deferred Payment of Import Duty

Q15. What is the new deferred payment timeline?
The duty deferral period has been extended from 15 days to 30 days.

Q16. Who can avail deferred duty payment?

AEO Tier 2 and Tier 3 entities
Authorised Public Undertakings
Newly introduced “Eligible Manufacturer Importers” (up to 31 March 2028)

Q17. Is interest payable on deferred duty?
No interest applies if payment is made within the prescribed due date. Delayed payments attract interest.

Automated Import Processing

Q18. What is Auto Goods Registration?
System-driven automatic registration of imported goods upon arrival without manual requests.

Q19. What is Auto Out of Charge (Auto OOC)?
Automated grant of clearance without officer intervention where no compliance requirements exist.

Q20. Can Customs override Auto OOC?
Yes. Customs officers may place a system “HOLD” based on intelligence or compliance concerns.

Overall Impact of the Reforms

Faster passenger clearance at airports
Simplified and digital baggage declarations
Boost to MSME exports via courier mode
Reduced warehouse congestion through RTO
Support to deep-sea fishing and seafood exports
Improved working capital flexibility for manufacturers
Greater trust-based, risk-managed Customs facilitation

These reforms collectively aim to modernise Customs administration, promote ease of doing business, and strengthen India’s global trade competitiveness.

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