The Government of India has introduced a significant strategic intervention to bolster the domestic electronics and clean energy manufacturing ecosystem. By broadening the scope of customs duty exemptions, the Ministry of Finance aims to reduce capital expenditure for high-technology production facilities and accelerate India’s transition into a global hub for Advanced Chemistry Cell (ACC) manufacturing.
Executive Overview of CBIC Notification No. 27/2026-Customs
On July 8, 2026, the Ministry of Finance (Department of Revenue) issued Notification No. 27/2026-Customs, exercising powers conferred under Section 25(1) of the Customs Act, 1962. This notification, effective immediately upon its publication in the Official Gazette, provides a critical extension of fiscal relief for the industrial technology sector.
Key administrative parameters of the notification include:
- Validity Period: The concessional duty regime is set to remain in force until March 31, 2029.
- Legal Mechanism: The document functions as an amendment to the principal Notification No. 25/2002-Customs (dated March 1, 2002). It specifically substitutes Serial Nos. 69 and 69A in the principal table with a unified, expanded entry.
- Regulatory Context: This amendment follows the previous update issued via Notification No. 01/2026-Customs on February 1, 2026, reflecting a continuous evolution of trade policy to meet shifting industrial demands.
Scope of Equipment and Technical Classifications
The revised schedule expands the list of eligible capital goods to 85 distinct categories, covering approximately 85% of the essential machinery required for a modern lithium-ion cell production plant. Manufacturers must adhere to the exact technical descriptions and 8-digit tariff items to qualify for the exemption.
Comprehensive Table of Exempted Manufacturing Equipment
| Notification Item | Equipment Description | Tariff Item / Sub-heading |
| (i) | Powder Dryer | 8479 89 99 |
| (ii) | Automatic Feeding and Blending System | 8479 82 00 |
| (iii) | Slurry Transfer System | 8413 70 96 |
| (iv) | Cathode Extrusion Coating Machine | 8424 89 90 |
| (v) | Anode Extrusion Coating Machine | 8424 89 90 |
| (vi) | Cathode Compression (Cold Press) | 8420 10 00 |
| (vii) | Anode Compression (Cold Press) | 8420 10 00 |
| (viii) | High Vacuum Pump | 8414 10 |
| (ix) | Negative Electrode Automatic Production Machine | 8479 89 99 |
| (x) | Negative Electrode Automatic Plate Machine | 8479 89 99 |
| (xi) | Fully Automatic Winding Machine | 8479 81 00 |
| (xii) | Semi-Automatic Winding Machine | 8479 81 00 |
| (xiii) | Auto EL Filling Machine | 8479 89 99 |
| (xiv) | Heating and Pressing Machine for Lithium | 8419 39 00 |
| (xv) | Auto Degassing Sealing Machine | 8479 89 99 |
| (xvi) | Electric Coin Cell Crimper with Die Mould | 8422 40 00 |
| (xvii) | Hand Held Electrode Cutter | 8477 80 90 |
| (xviii) | Vacuum Oven without Vacuum Pump | 8514 39 00 |
| (xix) | Electrode Slitting Machine | 8464 90 00 |
| (xx) | Evaporator Re-circulating Chiller | 8418 69 90 |
| (xxi) | OCV Testing Machine | 8479 89 99 |
| (xxii) | NMP Trapping System | 8543 70 99 |
| (xxiii) | Auto-taping machine | 8465 99 90 / 8479 89 99 |
| (xxiv) | Auto-packing machine | 8422 40 00 |
| (xxv) | Mylar sticking machine | 8479 89 99 |
| (xxvi) | Auto magazine load machine | 8479 89 99 |
| (xxvii) | Constant temperature capacity machine | 8479 89 99 |
| (xxviii) | Separator coating machine | 8479 89 99 |
| (xxix) | Roller cleaning machine | 8479 89 99 |
| (xxx) | Formation machine | 8479 89 99 |
| (xxxi) | Automatic tapping machine | 8479 89 99 |
| (xxxii) | Stacking machine | 8479 89 99 |
| (xxxiii) | Separator trimming machine | 8479 89 99 |
| (xxxiv) | Tab transfer welding & winding machine | 8515 80 90 / 8515 21 90 |
| (xxxv) | Ultrasonic Tray cleaning machine | 8479 89 99 |
| (xxxvi) | Gasket automatic cleaning machine | 8479 89 99 |
| (xxxvii) | Film / Myler tearing machine | 8479 89 99 |
| (xxxviii) | Auto unloading Machine | 8428 90 90 |
| (xxxix) | Mylar slitting machine | 8479 89 99 |
| (xl) | Foil slitting machine | 8462 39 00 / 8464 90 00 |
| (xli) | Dust collector | 8421 39 90 |
| (xlii) | Electrode packing machine | 8422 40 00 |
| (xliii) | Electrode rewinding machine | 8479 89 99 / 8479 81 00 |
| (xliii-b) | Calender printing machine | 8420 10 00 |
| (xliv) | Electrolyte tapping machine | 8479 89 99 |
| (xlv) | Strip Tape machine | 8465 99 90 / 8465 96 00 |
| (xlvi) | Mixing or agitating substances machine | 8479 89 99 |
| (xlvii) | Aluminium foil bag edge cutting machine | 8462 39 00 |
| (xlviii) | Ultrasonic cleaning machine | 8479 89 99 |
| (xlix) | Cell slicing machine | 8465 96 00 |
| (l) | Solvent Recovery System | 8479 89 99 |
| (li) | Heat Recovery System | 8414 59 90 |
| (lii) | Effluent Treatment System | 8421 21 90 |
| (liii) | Electrolyte injection machine | 8479 89 99 |
| (liv) | Helium Injection Machine | 8479 89 / 9031 80 |
| (lv) | Nail Inserting Machine | 8479 89 99 |
| (lvi) | Nail Pulling Machine | 8479 89 99 |
| (lvii) | Injection hole cleaning machine | 8479 89 99 |
| (lviii) | Cell Baking & Cooling Machine | 8419 89 90 |
| (lix) | Jelly Roll Pairing Machine | 8479 89 99 |
| (lx) | Mylar Wrapping Machine | 8422 40 00 |
| (lxi) | Cell Sorting Line | 8479 89 99 / 8479 90 90 |
| (lxii) | Laser Pin Welding | 8468 20 10 |
| (lxiii) | Laser Notching & Winding | 8479 89 99 |
| (lxiv) | Ultrasonic welding | 8515 80 90 |
| (lxv) | Load in Can | 8479 89 99 |
| (lxvi) | Top cover laser welding | 8515 80 90 |
| (lxvii) | 1st Helium test | 9031 80 00 |
| (lxviii) | 2nd Helium test | 9031 80 00 |
| (lxix) | Wire feeding and rework | 8515 80 90 |
| (lxx) | Cell ageing Machine | 8428 33 00 |
| (lxxi) | Negative Pressure Formation | 8543 70 99 |
| (lxxii) | Cell Formation – Cell capacity and SOC | 9030 39 / 8543 90 |
| (lxxiii) | Cell Formation – DCIR | 9030 39 00 |
| (lxxiv) | Cell Formation – Cell Tray plastic | 3923 10 90 |
| (lxxv) | Cell Formation – Cell Tray Metallic | 7616 99 10 |
| (lxxvi) | Cell Formation – Formation Machine | 7304 41 |
| (lxxvii) | Cell Formation – Other Trays | 3923 90 / 7326 90 |
| (lxxviii) | Film wrapping and final inspection | 9031 80 / 9022 19 |
| (lxxix) | Tap to top cap welding | 8468 20 10 |
| (lxxx) | Fibre temperature Detection System | 7308 90 |
| (lxxxone) | Water sprinkler system | 8424 89 |
| (lxxxtwo) | Rack | 7308 90 |
| (lxxxthree) | Tape Coding | 8479 89 99 |
| (lxxxfour) | Wire filling and welding machine | 8479 89 99 |
Chronological Manufacturing Process Coverage
The Ministry has ensured that the entire lithium-ion cell manufacturing chain is supported by mapping exemptions to every major stage of production.
Raw Material Preparation & Slurry Mixing
- Includes (i) Powder Dryer, (ii) Automatic Feeding and Blending System, (iii) Slurry Transfer System, and (xlvi) Mixing or agitating substances machine to handle raw chemical inputs.
Electrode Coating & Compression
- Features (iv) Cathode and (v) Anode Extrusion Coating machines, (vi) Cathode and (vii) Anode Compression (Cold Press) units, (xxviii) Separator coating machine, and (xliii-b) Calender printing machine.
Cell Assembly & Winding
- Covers (ix) Negative Electrode Automatic Production, (x) Negative Electrode Automatic Plate Machine, (xi) Fully and (xii) Semi-Automatic Winding, (xix) Electrode Slitting, (xxiii) Auto-taping, (xxv) Mylar sticking, (xxvi) Auto magazine load, (xxxi) Automatic tapping, (xxxii) Stacking, (xxxiii) Separator trimming, (xxxvii) Film/Mylar tearing, (xxxviii) Auto unloading, (xxxix) Mylar slitting, (xl) Foil slitting, (xlii) Electrode packing, (xliii) Electrode rewinding, (xlv) Strip Tape, (xlvii) Aluminium foil bag edge cutting, (xlix) Cell slicing, (lv) Nail Inserting, (lvi) Nail Pulling, (lix) Jelly Roll Pairing, (lx) Mylar Wrapping, (lxv) Load in Can, and (lxxxthree) Tape Coding.
Electrolyte Management
- Supports chemical integration through (xiii) Auto EL Filling, (xliv) Electrolyte tapping, and (liii) Electrolyte injection machines.
Sealing & Welding
- Utilizes (xv) Auto Degassing Sealing, (xvi) Electric Coin Cell Crimper, (xxxiv) Tab transfer welding & winding, (lvii) Injection hole cleaning, (lxii) Laser Pin Welding, (lxiv) Ultrasonic welding, (lxvi) Top cover laser welding, (lxix) Wire feeding and rework, (lxxix) Tap to top cap welding, and (lxxxfour) Wire filling and welding.
Formation, Ageing, & Testing
- Detailed stage including (viii) High Vacuum Pump, (xviii) Vacuum Oven, (xxi) OCV Testing, (xxvii) Constant temperature capacity machine, (xxx) Formation machine, (liv) Helium Injection, (lviii) Cell Baking & Cooling, (lxi) Cell Sorting Line, (lxiii) Laser Notching & Winding, (lxvii) 1st and (lxviii) 2nd Helium tests, (lxx) Cell ageing, (lxxi) Negative Pressure Formation, (lxxii-lxxvii) Cell Formation specific items (Capacity, DCIR, Trays, etc.), and (lxxviii) Film wrapping and final inspection.
Support & Auxiliary Systems
- Essential infrastructure including (xx) Evaporator Re-circulating Chiller, (xxii) NMP Trapping, (xxix) Roller cleaning, (xxxv) Ultrasonic Tray cleaning, (xxxvi) Gasket cleaning, (xli) Dust collector, (xlviii) Ultrasonic cleaning, (l) Solvent Recovery, (li) Heat Recovery, (lii) Effluent Treatment, (lxxx) Fibre temperature detection, (lxxxone) Water sprinkler, and (lxxxtwo) Rack.
Targeted Beneficiary Sectors: EV and BESS Ecosystems
The expansion of Notification No. 27/2026-Customs serves as a critical catalyst for the Electric Vehicle (EV) and Battery Energy Storage Systems (BESS) sectors.
- Universal Downstream Application: A fundamental policy shift is the removal of previous restrictions that linked duty exemptions to specific end-uses (e.g., mobile phones). The current framework supports lithium-ion cells used universally across electronics, mobility, and grid-scale storage.
- Cost Competitiveness: By exempting 85% of capital goods, the government significantly lowers the “landed cost” of manufacturing, enabling domestic gigafactories to compete with established hubs in China and Vietnam.
- Domestic Value Addition: The policy incentivizes the localization of high-value manufacturing rather than mere assembly of imported kits.
Additional Customs Provisions for Electronics Components
In separate administrative actions alongside the primary lithium-ion notification, the Centre has granted relief to other high-growth electronics segments to deepen domestic value addition.
Display Assembly Inputs
Concessional duty is granted to five critical components used in display assemblies for automotive, medical, and industrial electronics:
- Display cells
- Flexible Printed Circuit Assemblies (FPCAs)
- Backlight units
- Frames
- Anisotropic Conductive Film (ACF)
Regulatory Boundary: This relief specifically excludes display assemblies intended for mobile phones, smartwatches, televisions, smart meters, or interactive flat-panel displays.
Wireless Charging Modules
Strategic relief was provided for six components required for manufacturing smartphone wireless charging inductor coil modules:
- Neodymium magnets
- Nano-crystalline assemblies
- E-shields
- PET liners
- PC shims
- Coils
Implementation and Regulatory Compliance
To avail of the concessional duty benefits, importers and manufacturers must ensure strict compliance with the 8-digit tariff classifications and technical descriptions assigned by the CBIC. The exemptions are effective immediately and provide a stable, long-term regulatory horizon through the 2028-2029 fiscal year. These measures represent a cohesive effort by the Ministry of Finance to facilitate the scaling of India’s high-tech industrial base and reduce long-term dependence on imported finished cells and electronic modules.
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