CBIC Updates Tariff Value Regime for Edible Oils, Precious Metals, and Brass Scrap Effective February 2026

The Central Board of Indirect Taxes and Customs (CBIC), operating under the Department of Revenue, Ministry of Finance, has promulgated a significant update concerning the valuation of specific imported commodities. Through the issuance of Notification No. 17/2026–Customs (N.T.) on February 3, 2026, the Board has substituted the primary valuation tables governing the import of edible oils, precious metals, brass scrap, and areca nuts.

This regulatory update exercises powers conferred by Section 14(2) of the Customs Act, 1962. The amendment specifically targets the principal Notification No. 36/2001–Customs (N.T.), replacing Tables 1, 2, and 3 entirely. The new tariff values and descriptions came into force on February 4, 2026.

While the notification indicates that the monetary tariff values for the listed goods remain numerically unchanged from the previous amendment, the substitution of the tables serves to reinforce the legal framework, clarify product descriptions, and ensure alignment with recent exemption notifications such as Notification No. 45/2025-Customs.

To understand the impact of this notification, it is essential for the assessee to comprehend the statutory basis of Tariff Values. Generally, customs duty is calculated on the "transaction value" of goods as per Section 14(1) of the Customs Act, 1962. However, to prevent undervaluation and ensure revenue stability for sensitive commodities that witness high price volatility in international markets, the government utilizes Section 14(2).

Section 14(2) empowers the CBIC to fix tariff values for any class of imported goods or exported goods. When a tariff value is fixed, the customs duty is calculated based on this notified value, irrespective of the actual invoice price (transaction value), provided the tariff value is higher or as mandated. This mechanism is crucial for commodities like Palm Oil, Gold, and Silver, where global indices fluctuate daily.

Detailed Analysis of Amended Tables

The Notification No. 17/2026–Customs (N.T.) substitutes the existing tables with new ones. The details of the commodities and their respective tariff values are analyzed below.

Table 1: Edible Oils and Brass Scrap

Table 1 covers major edible oils and brass scrap. These commodities are critical raw materials for the FMCG and manufacturing sectors. The values are denominated in US Dollars per Metric Tonne.