Budget 2026: Comprehensive Guide to New Customs Baggage Rules, E-Commerce Reforms, and Trade Facilitation Measures
The Ministry of Finance has unveiled a transformative reform package in February 2026, significantly altering the landscape of Indian Customs. These changes, primarily driven by the introduction of the Baggage Rules, 2026, aim to modernize the regulatory framework to align with contemporary global travel dynamics, economic shifts, and the evolving needs of international trade.
This comprehensive guide analyzes the overhaul of passenger facilitation, the liberalization of courier exports, and critical amendments affecting the fisheries sector.
Part I: The Baggage Rules, 2026 – A Paradigm Shift for Travelers
Replacing the decade-old 2016 regulations, the Baggage Rules, 2026 were notified via Notification No. 14/2026-Customs (N.T.) dated 01.02.2026. These rules introduce rationalized definitions, enhanced allowances, and a structured approach to Transfer of Residence (TR).
1. Key Definitions and Applicability
To eliminate ambiguity, the new rules have refined specific categories of travelers:
- Resident: Defined as an individual holding a valid passport issued under the Passport Act, 1967, who maintains their primary residence within India.
- Tourist: An individual not normally resident in India, entering for a duration of no more than six months within a twelve-month cycle for legitimate non-immigrant purposes.
- Tourist of Indian Origin: This category specifically encompasses Overseas Citizen of India (OCI) cardholders and Non-Resident Indians (NRIs).
- Foreigner (Non-Tourist): An individual possessing a valid visa (excluding tourist visas) intended for a stay exceeding six months.
2. Duty-Free Allowances and General Exemptions
The reforms have adjusted the monetary limits for duty-free imports to reflect inflation and economic reality.
A. Personal Effects
All passengers are entitled to clear "used personal effects" without payment of duty. These are defined as articles required for satisfying daily necessities during the journey. However, this definition explicitly excludes items imported for commercial purposes.
B. General Free Allowance (GFA)
Excluding infants, passengers are eligible for the following duty-free allowances for articles not listed in Annexure-I:
| Category of Passenger | Mode of Travel | Duty-Free Allowance (INR) |
|---|---|---|
| Resident | Air/Sea (Non-Land) | ₹ 75,000 |
| Tourist of Indian Origin | Air/Sea (Non-Land) | ₹ 75,000 |
| Foreigner (Valid Visa) | Air/Sea (Non-Land) | ₹ 75,000 |
| Tourist of Foreign Origin | Air/Sea (Non-Land) | ₹ 25,000 |
| Crew Members | Any | ₹ 2,500 |
Important Note: Passengers arriving via land borders do not qualify for the General Free Allowance; they are restricted solely to used personal effects.
C. The Jewellery Allowance
The 2026 rules have shifted towards a weight-based system, discarding the obsolete value caps that failed to keep pace with gold price fluctuations. For residents or tourists of Indian origin residing abroad for over one year:
- Female Passengers: Up to 40 grams duty-free.
- Male/Other Passengers: Up to 20 grams duty-free.