Summary of this article
Customs duty on dutiable goods imported for personal use reduced from 20 per cent to 10 per cent under Tariff Heading 9804.
The move is expected to lower costs and reduce disputes during customs clearance for individual importers.
Likely to encourage compliance and curb informal import channels, especially for overseas shopping and travel purchases.
It also balances consumer relief with revenue protection, without diluting domestic industry safeguards.
In her Budget 2026 speech on February 1, 2026, Union Minister of Finance Nirmala Sitharaman introduced significant relief for individual consumers by halving the customs duty on goods imported for personal use.
She said that to rationalise the customs duty structure for goods imported for personal use, she proposed “to reduce the tariff rate on all dutiable goods imported for personal use from 20 per cent to 10 per cent.”
Welcoming the announcement, Tanushree Roy, executive director, Nangia & Co. LLP, said that the reduction of customs duty from 20 per cent to 10 per cent on dutiable goods imported for personal use under Tariff Heading 9804 was a welcome relief for individual importers.
“It lowers the overall cost burden, simplifies compliance, and is likely to reduce disputes at the time of clearance. The move also reflects a balanced approach – easing the impact on consumers while maintaining a structured and transparent duty regime,” she added.
Rajarshi Dasgupta, executive director - Tax, AQUILAW, said: “The Budget’s proposal to reduce customs duty on goods imported for personal use represents a meaningful move towards easing the cost burden on ordinary consumers and travellers. By lowering the tariff rate on dutiable personal imports - a category that previously carried significantly higher levies - the government is recognising the evolving patterns of cross‑border shopping and digital purchases.”
This change will likely make personal imports more predictable and affordable, helping curb informal channels and encourage compliance with official customs procedures. At the same time, by calibrating duties carefully, it will also balance revenue needs with consumer relief, making travel and overseas purchases less punitive without undermining domestic industry protections.
Atul Menon, Partner, King Stubb & Kasiva, Advocates and Attorneys, said, “The Union Budget 2026 has taken a welcome step in easing the customs duty burden on goods imported for personal use, with the tariff rate proposed to be reduced from 20 per cent to 10 per cent. This rationalisation will make routine imports simpler and more affordable for individuals. However, it is important to note that this reduction does not extend to jewellery or precious metals, which continue to attract higher duties under existing customs rules.”
The measure is, therefore, aimed at general consumer goods, reflecting a balance between facilitating personal imports and safeguarding revenue on high-value items.
