Budget 2026-27 halves duty on personal imports to 10%, exempts 17 cancer drugs from customs duty
The Union Budget 2026-27, presented on 1 February 2026, proposed cutting the tariff on all dutiable goods imported for personal use from 20% to 10% and exempting 17 drugs, mainly for cancer, from basic customs duty.
Summary
The Union Budget 2026-27, presented on 1 February 2026, proposed cutting the tariff on all dutiable goods imported for personal use from 20% to 10%. Basic customs duty is to be exempted on 17 drugs or medicines, particularly for cancer patients, and seven more rare diseases are added for duty-free personal imports of drugs and Food for Special Medical Purposes. The duty-deferral period for Tier 2 and Tier 3 Authorised Economic Operators rises from 15 to 30 days. The customs duty exemption for goods for nuclear power projects is extended to 2035 and widened to all plants regardless of capacity. Duty-free inputs for seafood exports rise from 1% to 3% of the previous year's FOB export turnover, and eligible SEZ manufacturing units can make one-time sales to the Domestic Tariff Area at concessional duty.
Key facts
- Personal imports
- Tariff 20% → 10%
- Medicines
- BCD exempted on 17 drugs, particularly for cancer
- Rare diseases
- 7 more added for duty-free personal imports
- AEO duty deferral
- 15 → 30 days (Tier 2 and 3)
- Nuclear power
- BCD exemption extended to 2035, all capacities
- Seafood export inputs
- 1% → 3% of FOB value
- SEZ units
- One-time concessional sales to DTA
Practice MCQs 4 questions
The Union Budget 2026-27 proposed reducing the tariff on all dutiable goods imported for personal use from 20% to:
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Correct answer: B — 10%
The tariff on dutiable goods imported for personal use is to fall from 20% to 10%.
How many drugs or medicines, particularly for cancer patients, did the Union Budget 2026-27 propose to exempt from basic customs duty?
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Correct answer: C — 17
BCD is to be exempted on 17 drugs or medicines; separately, 7 more rare diseases were added for personal-import exemptions.
Under the Union Budget 2026-27, until which year has the basic customs duty exemption on goods for nuclear power projects been extended?
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Correct answer: C — 2035
The exemption was extended till 2035 and expanded to all nuclear plants irrespective of capacity.
Consider the following customs proposals in the Union Budget 2026-27: 1. The duty-deferral period for Tier 2 and Tier 3 Authorised Economic Operators is raised from 15 to 30 days. 2. The limit for duty-free inputs for seafood exports is raised from 1% to 3% of the previous year's FOB export turnover. Which of the above is/are correct?
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Correct answer: C — Both 1 and 2
Both are correct.