Government Grants Zero Customs Duty on 40 Key Chemicals, Resins and Polymers

Ludhiana, April 2, 2026: In a significant relief to the printing, flexible packaging and foil conversion sector, the Ministry of Finance has notified nil basic customs duty on 40 essential raw materials used in manufacturing inks, adhesives, lamination films and coatings. The exemption, issued through Notification No. 12/2026-Customs dated April 1, 2026, comes into effect from today, April 2, 2026, and will remain in force until June 30, 2026. The move is expected to substantially reduce input costs for domestic converters, particularly units engaged in flexographic and gravure printing, lamination, blister packaging and rigid trays. Industry sources have welcomed the three-month window, stating that it will enhance competitiveness against imported finished packaging materials at a time of rising global prices.

Key items covered under the zero-duty list and widely used in the printing and packaging value chain include solvents such as toluene, methanol and isopropyl alcohol, which are critical components in flexo, gravure and offset inks as well as pressroom cleaning solutions. Monomers like styrene, vinyl acetate and toluene di-isocyanate are used in resin and adhesive production. A major benefit accrues to the polymer and resin categories. Polymers of ethylene (including EVA), polypropylene, polystyrene, polyvinyl chloride, polyethylene terephthalate chips, epoxy resins, alkyd resins, polyurethanes and polyvinyl alcohol have all been granted nil duty. These materials are directly used in the production of BOPP and PET lamination films, blister packaging sheets, hot-melt adhesives, overprint varnishes, primers and barrier coatings.

The full list of 40 items is published in The Gazette of India (Extraordinary), Part II, Section 3, Sub-section (i), No. 227 dated April 1, 2026. Importers are advised to quote Notification No. 12/2026-Customs while filing bills of entry to avail the benefit. There is no change in IGST or other levies.

Printing and packaging associations, including the All India Federation of Printers and Packagers (AIFPP), Offset Printers Association (OPA) and the Integrated Printing, Photography & Multimedia Technologists’ Association (IPPAMTA), are likely to highlight this timely relief in their forthcoming communications to members. Units planning imports of inks, lamination films, BOPP, PET, PE, PVC, polyurethane adhesives or related chemicals in the coming weeks are encouraged to review their shipments immediately and coordinate with their clearing agents to maximise the cost advantage before the exemption ends on June 30, 2026.

This is an official industry update based on the Government of India notifications published in the Gazette of India.