In a significant trade facilitation measure, the Central Board of Indirect Taxes and Customs (CBIC), vide Instruction No. 23/2026-Customs dated November 10, 2026, has announced an interim relaxation for a period of 90 days in respect of imports of substances covered under the Insecticides Act, 1968, intended exclusively for non-insecticidal use. The measure allows eligible import consignments to be released on the basis of an end-use bond and an undertaking, providing much-needed relief to importers facing clearance difficulties due to the requirement of an import permit.
Background: Import Permit Requirement for Non-Insecticidal Use
Earlier, CBIC, vide Instruction No. 18/2026-Customs dated October 1, 2026, had brought to the attention of Customs authorities the requirement of an import permit for substances included in the Schedule to the Insecticides Act, 1968, even when imported for non-insecticidal purposes, including acrylonitrile.
The said requirement arises from the Insecticides (Third Amendment) Rules, 2026, notified by the Department of Agriculture & Farmers Welfare vide Notification No. G.S.R. 597(E) dated July 8, 2026, which came into force on the same date.
Trade Representations Highlight Practical Difficulties
CBIC received representations from various trade and industry stakeholders highlighting difficulties faced by importers who are not manufacturers of the imported substances, including traders importing bulk liquid chemicals on behalf of multiple actual users.
Such importers were reportedly facing difficulties in applying for the prescribed import permits, resulting in consignments already contracted and shipped being held at ports.
Considering the time required to obtain the necessary import permits, trade representatives sought transitional relief to avoid disruption of legitimate imports and industrial supply chains.
The matter was examined by CBIC in consultation with the Central Insecticides Board & Registration Committee (CIB&RC) and the Directorate General of Foreign Trade (DGFT).
CBIC Grants 90-Day Interim Facilitation
Taking into consideration the concerns raised by the trade and the ongoing litigation on the issue, CBIC has decided that, for a period of 90 days from November 10, 2026, consignments of substances included in the Schedule to the Insecticides Act, 1968, declared for non-insecticidal use shall be permitted to be released on the basis of an end-use bond.
The relaxation is intended to facilitate legitimate imports during the transitional period, while ensuring that imported substances are not diverted for insecticidal purposes.
Mandatory Undertaking by Importers
To avail themselves of this interim facilitation, importers shall be required to furnish an undertaking confirming that the imported goods are intended exclusively for non-insecticidal purposes.
The undertaking must further confirm that the goods shall not be used, sold or supplied for insecticidal use.
Importers shall also furnish the name and address of the actual user(s) of the imported goods to enable verification of their intended end use.
Relief Extended to Consignments Already Held at Ports
Importantly, the benefit of the interim relaxation shall also extend to consignments already declared for non-insecticidal use but presently held at Customs ports solely due to non-availability of the prescribed import permit.
This provision is expected to facilitate the clearance of pending consignments and reduce disruptions in the supply of chemicals intended for legitimate industrial applications.
However, the relaxation shall not apply where any other violation is noticed or where specific intelligence indicates possible diversion of the imported substances for insecticidal use.
Risk Management System to Be Suitably Modified
CBIC has further directed the National Customs Targeting Centre (NCTC) to undertake suitable modifications in the Customs Risk Management System to give effect to the interim facilitation measure.
These modifications are intended to support the implementation of the revised clearance procedure while maintaining appropriate regulatory safeguards.
Interim Measure Subject to Review
CBIC has clarified that the relaxation is an interim facilitation measure and shall be reviewed in consultation with the CIB&RC, Department of Agriculture & Farmers Welfare and DGFT.
Accordingly, Instruction No. 18/2026-Customs dated October 1, 2026 stands modified to the extent provided in Instruction No. 23/2026-Customs dated November 10, 2026.
Customs Authorities Directed to Ensure Uniform Implementation
In order to ensure uniform implementation across Customs formations, CBIC has directed all Custom Houses to immediately align their local procedures with the revised instructions.
Customs authorities may also issue suitable public notices to inform trade and industry stakeholders about the applicable facilitation measures.
Any difficulties arising in implementation may be brought to the notice of the Board.
Significance for Trade and Industry
The decision represents an important step towards ease of doing business and trade facilitation, particularly for traders, chemical importers and industrial users relying on substances covered under the Insecticides Act, 1968 for non-insecticidal purposes.
By allowing release of eligible consignments against an end-use bond and undertaking, CBIC has sought to balance regulatory compliance with the practical requirements of legitimate commercial and industrial activities.
The relaxation is especially relevant for consignments already held at ports and for traders importing chemicals on behalf of multiple actual users.
The key takeaway is that eligible imports intended for non-insecticidal use can receive conditional Customs clearance during the 90-day interim period without awaiting the prescribed import permit, subject to fulfilment of the safeguards specified by CBIC.
The Instructions can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1000594/ENG/Instructions
