The Union Budget 2026-27 may introduce a customs amnesty scheme along with calibrated corrections in input duties to support exporters, particularly small and medium enterprises (SMEs), amid a challenging global trade environment, according to tax experts.
With global demand remaining weak and trade disruptions persisting, experts believe policy efficiency, not additional fiscal spending, will play a critical role in strengthening India’s export competitiveness.
“In a subdued global trade cycle, efficiency gains are India’s strongest export stimulus,” a tax expert said. “Calibrated input duty corrections, faster duty remissions, and logistics cost neutralisation can improve competitiveness without materially straining the fiscal balance.”
Push for Comprehensive Customs Reform
Finance Minister Nirmala Sitharaman has previously indicated that a comprehensive overhaul of the customs framework is among the government’s next major reform priorities. She has emphasised the need to simplify the customs structure, enhance transparency, and make compliance easier for businesses.
Currently, many export-oriented manufacturers face inverted duty structures that raise production costs and erode competitiveness. At a time when Indian exporters are already grappling with higher tariffs in key overseas markets, reducing costs and improving efficiency have become top demands—especially from SMEs.
Duty Rationalisation to Support Key Sectors
Experts suggest that Budget 2026-27 could further rationalise customs duties by lowering tariffs on raw materials and correcting distortions in sectors such as electronics, textiles, and chemicals. Some of these sectors have been impacted by tariffs of up to 50 percent in overseas markets, including the United States.
“End-use based exemptions may be introduced to ensure benefits reach targeted businesses,” another tax expert said. He added that further streamlining of the remaining eight tariff slabs, continuing reforms initiated in the previous Budget, could help simplify the customs tariff structure.
Customs Amnesty Scheme to Unlock Capital
Tax experts have also called for the introduction of a customs amnesty scheme to resolve disputes worth over ₹1.5 lakh crore that are currently pending at various adjudication levels. The amount locked in disputes has increased significantly over the past few years.
Such a scheme could help unlock working capital tied up in litigation, ease compliance burdens, and provide a timely boost to businesses navigating a volatile global trade environment.
Digitalisation and Faceless Assessments to Cut Delays
In line with the Finance Minister’s focus on simplifying customs processes, experts say expanding digitalisation and adopting faceless assessments could significantly reduce clearance delays and ensure uniform treatment across ports.
“The integration of ICEGATE, the Risk Management System, and the EDI platform into a single system, which is already under consideration, will streamline data flow and enable risk-based clearances,” a tax expert said.
Experts also suggested linking customs and GST portals to simplify compliance. This would allow seamless credit claims, easier amendments to bills of entry, and reduced duplication in reporting requirements.
What Exporters Expect from Budget 2026-27
As Budget 2026-27 approaches, exporters are not seeking sweeping incentives. Instead, they are looking for predictable duty structures, faster dispute resolution, and simplified customs processes that reduce costs and improve ease of doing business in an increasingly uncertain global trade landscape.
Source: NewIndianExpress