India-Oman CEPA: Customs Duty Concessions Take Effect from 1 June 2026
The Ministry of Finance (Department of Revenue) has formally notified the first set of tariff concessions under the India-Oman Comprehensive Economic Partnership Agreement (CEPA) through Notification No. 20/2026-Customs dated 31st May, 2026. These concessions, which became operative from 1 June 2026, have been issued in exercise of the powers vested under sub-section (1) of section 25 of the Customs Act, 1962 and extend reduced customs duty benefits to specified goods originating from the Sultanate of Oman and imported into the Republic of India.
Legal Basis and Operative Framework
The Central Government, upon being satisfied that it is necessary in the public interest to do so, invoked its authority under section 25(1) of the Customs Act, 1962 (52 of 1962) to grant partial exemptions from customs duties otherwise leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). The notification simultaneously addresses the applicability of the Agriculture Infrastructure and Development Cess (AIDC) levied under section 124 of the Finance Act, 2021 (13 of 2021) for certain categories of goods.
The concessions are structured across three distinct tables, each serving a specific purpose in the tariff relief architecture of the India-Oman CEPA framework.
Structure of Tariff Concessions: Three-Table Framework
Table I – Reduced Basic Customs Duty (BCD) on Specified Goods
Table I covers goods identified by specific tariff items listed in the First Schedule to the Customs Tariff Act, 1975. For these goods, the notification prescribes concessional Basic Customs Duty (BCD) rates that are lower than the standard applicable rates. The exemption operates to the extent that duty in excess of the rate specified in column (4) of Table I is waived. Eligible importers claiming concessions under this table are required to ensure that the goods qualify as products of Omani origin under the applicable rules.
Table II – Dual Concession on BCD and AIDC
Table II extends the benefit further by providing concessional treatment on two distinct levies simultaneously — the Basic Customs Duty as well as the Agriculture Infrastructure and Development Cess (AIDC). For specified goods listed under this table, the exemption operates such that:
- Customs duty in excess of the rate specified in column (4) of Table II is exempted; and
- AIDC in excess of the rate specified in column (5) of Table II is similarly exempted.
This dual-relief mechanism reflects the government's intent to make Omani imports of certain goods more price-competitive within India, consistent with the broader CEPA commitments.