Customs Update: Government Grants Retrospective Duty Relief on Nuclear Power Generation Equipment Imports
The Central Government has issued an important customs notification providing retrospective relief from customs duty on specified goods used for the generation of nuclear power.
What is the Update?
The Government has recognized that a long-standing practice existed whereby imports of certain nuclear power generation equipment falling under Customs Tariff Item 8401 30 00 were being allowed duty-free.
To align legal provisions with this prevailing practice, the Government has exercised its powers under Section 28A of the Customs Act, 1962 and directed that customs duty shall not be required to be paid on such imports made during the specified period.
Goods Covered
The relief applies to:
- Goods used for generation of nuclear power
- Classified under Tariff Item 8401 30 00
- Covered under Serial No. 227A of Notification No. 45/2025-Customs
Period Covered
The benefit applies to imports made between:
1 April 2019 and 31 January 2026
Practical Impact for Importers
This notification provides significant certainty to importers and project operators involved in the nuclear power sector.
Key implications include:
✅ No customs duty demand for eligible imports during the covered period
✅ Protection against retrospective recovery proceedings relating to such imports
✅ Reduction in potential tax disputes and litigation
✅ Greater clarity for ongoing assessments and audits
Preface Consulting Insights
This notification is essentially a duty regularization measure rather than a new exemption. It acknowledges the prevailing industry practice and ensures that eligible importers are not burdened with retrospective customs duty liabilities for imports made between April 2019 and January 2026.
Businesses involved in nuclear energy projects should review past import transactions falling under Tariff Item 8401 30 00 and maintain supporting documentation to establish eligibility under the notification.
For organizations facing assessments or customs queries relating to these imports, the notification may provide substantial relief and support for closure of pending matters.