In a significant policy move aimed at facilitating ease of trade and addressing public interest considerations, the Government of India has issued Notification No. 13/2026-Customs dated April 01, 2026, granting exemption from the Agriculture Infrastructure and Development Cess (AIDC) on specified goods.
Key Highlights of the Notification
The Central Government, exercising its powers under the Customs Act, 1962 read with the Finance Act, 2021, has decided to exempt AIDC on certain goods falling under the Customs Tariff.
- Commodity Covered: Ammonium nitrate
- Tariff Item: 3102 30 00
- Rate of AIDC: Nil (Fully Exempted)
This exemption applies only to the portion of AIDC that exceeds the specified rate, effectively providing relief on imports of the said commodity.
Objective of the Measure
The exemption has been introduced in view of public interest considerations, particularly to:
- Ensure availability of essential inputs
- Support industrial and agricultural sectors
- Reduce the cost burden on stakeholders dependent on ammonium nitrate
Ammonium nitrate is widely used in fertilizers and industrial applications, and this move is expected to ease supply-side pressures.
Effective Date and Validity
The notification will:
- Come into force on: April 2, 2026
- Remain valid until: June 30, 2026 (inclusive)
Legal Framework
The exemption is notified under:
- Section 25(1) of the Customs Act, 1962
- Read with Section 124 of the Finance Act, 2021
It applies to goods classified under the First Schedule of the Customs Tariff Act, 1975.
Conclusion
This targeted exemption reflects the Government’s continued commitment to rationalizing duties, ensuring price stability, and supporting key sectors of the economy. The measure is expected to provide immediate relief to industries reliant on ammonium nitrate while aligning with broader economic objectives.
The Notification can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1010618/ENG/Notifications
