- Custom duty exemptions proposed for civil and defence aircraft manufacturing components
- Exemptions include raw materials for aircraft parts used in maintenance and defence
- Duty exemption on select microwave oven parts and solar glass raw material sodium antimonate
The Union government announced proposals to implement custom duty exemptions for civil and defence aircraft manufacturing materials and components, as well as microwave parts, solar glass raw materials and nuclear power projects under the Union Budget 2026-27 presented by Finance Minister Nirmala Sitharaman on Sunday.
The announcement contained a proposal to exempt basic customs duty on the components needed for the manufacturing process of aircraft, including civilian, training and other aircraft. There will be basic custom duty exemptions on raw materials for aircraft parts manufacturing imported for use in maintenance repair operations and defence sector needs.
It also proposed an exemption on select parts used to make microwave ovens. The government also announced a special one time measure to enable sales by eligible manufacturing units in special economic zones to the domestic tariff at constructional rates of duty.
The Budget has also proposed to increase the limit for duty-free imports of specified inputs for processing seafood for export to 3% from 1% of Free On Board value for the same.
It has also proposed to allow duty free imports of specified inputs available for exports of leather. It may further extend basic customs duty exemption for capital goods used to manufacture Battery Energy Storage Systems. It also proposed an exemption for customs duty on sodium antimonate, which is used in the manufacture of solar glass.
The Centre is also proposing to exempt customs duty on imports of goods for nuclear power projects till 2035.
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