The Central Board of Indirect Taxes and Customs has notified the Baggage Rules, 2026, raising duty-free limits for residents and tourists. The move supports ease of travel, consumption, and tourism, but raises enforcement challenges like valuation disputes and gold smuggling, requiring tech-enabled customs oversight.
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Picture Courtesy: THEHINDU
Context
The Central Board of Indirect Taxes and Customs (CBIC) notified the Baggage Rules 2026 effective from February 2, 2026.
Key Highlights of Baggage Rules 2026
Baggage, or luggage, consists of bags, cases, and containers which hold a traveler's personal articles while the traveler is in transit.
Duty-Free Allowance Increased:
Jewellery Allowance (for those abroad >1 year):
Rationale for Revision
The changes aim to adjust for inflation, enhance 'Ease of Travel' by reducing customs harassment, and boost tourism by aligning with global standards.
Socio-Economic Impact
The new rules benefit the growing number of international travelers from the Indian middle class and balance cultural gold import needs with strict anti-smuggling measures.
Challenges in Implementation
Valuation Disputes: Disputes frequently arise due to the subjective and inconsistent valuation of imported goods by customs officers.
The "Commercial Quantity" Loophole: The Customs Act bars importing "commercial quantity" goods as baggage, yet the undefined term risks litigation even if the value falls below the duty-free limit.
Way Forward
Technological Integration: Adopt Artificial Intelligence (AI) in baggage scanning, similar to South Korea’s Smart Customs initiative, to flag high-risk items without delaying genuine travelers.
Biometric Linkage: Integrate the DigiYatra platform with customs declarations to create profiles and identify frequent flyers who may be misusing the allowance for petty smuggling.
Clear Valuation Guidelines: CBIC should publish a real-time, app-based "Standard Price List" for commonly imported items to eliminate ambiguity and corruption in valuation.
Source: THEHINDU
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PRACTICE QUESTION Q. With reference to the Baggage Rules, 2026, consider the following statements: 1. The new rules prohibit foreign tourists from bringing any duty-free goods into India. 2. The rules were notified by the Central Board of Indirect Taxes and Customs (CBIC). Which of the statements given above is/are correct? a) 1 only b) 2 only c) Both 1 and 2 d) Neither 1 nor 2 Answer: b) Explanation: Statement 1 is incorrect: The new rules have increased the duty-free allowance for foreign tourists from ₹15,000 to ₹25,000. All passengers (including foreign tourists) continue to receive duty-free clearance for used personal effects and travel souvenirs. Statement 2 is correct: The Central Board of Indirect Taxes and Customs (CBIC) notified the Baggage Rules, 2026 on February 1, 2026, to modernize customs procedures and align duty-free allowances with current economic conditions and travel volumes. |
"Baggage" refers to the bags, trunks, and personal belongings a traveler carries while in transit.
The new duty-free allowance for residents or tourists of Indian origin arriving from countries (other than Nepal, Bhutan, or Myanmar) has been increased to ₹75,000.
If you have resided abroad for more than 1 year, female passengers can bring up to 40 grams, and male/other passengers can bring up to 20 grams of jewellery duty-free.
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