The Union Budget 2016-17 has lowered down the Basic Customs Duty for some of the chemicals and petrochemicals. According to the Budget, Basic Customs duty on denatured ethyl alcohol (ethanol) is being reduced from 5% to 2.5% for manufacture of excisable goods, subject to actual user condition.

Basic Customs duty on all acyclic hydrocarbons and all cyclic hydrocarbons falling under 2901 and 2902 [except para-xylene which attracts Nil BCD (S.No.174) and styrene (2902 50 00) which attracts 2% BCD (S.No.175)] is being rationalized at 2.5%. Moreover, Special Additional Duty (SAD) on orthoxylene [2902 41 00] for use in manufacture of phthalic anhydride is being reduced from 4% to 2%, subject to actual user condition. Also, Basic Customs duty on Polypropylene granules / resins [3902] for the manufacture of capacitor grade plastic films is being reduced from 7.5% to Nil, subject to actual user condition.

And, Basic Customs duty on Super Absorbent Polymer (SAP) [3906 90 90] for manufacture of goods falling under heading 9619 [sanitary towels, tampons, napkins, diapers etc.] is being reduced from 7.5% to 5%, subject to actual user condition. In addition to this, BCD on electrolysers, membranes and 2.5% Nil their parts required by caustic soda/potash unit using membrane cell technology being exempted.