1.1 Introduction: When the Tide Turns at Customs

Every international traveller returning to India carries more than baggage that is, they carry choices made abroad. With increasing international travel, rising global prices, and the reality that everyday consumer goods have become costlier, the Government has now widened this gate. In a significant reform aimed at easing customs hassles and providing relief to the millions of Indians and foreign travellers who land on Indian shores each year, the Government of India has revamped its baggage regulations. Under the Baggage Rules, 2026, the duty-free allowance for residents and tourists of Indian origin has been raised significantly, while foreign tourists too receive a higher threshold than before.

The implementation of these rules is overseen by the Ministry of Finance (Department of Revenue), Central Board of Indirect Taxes and Customs (CBIC), which functions as the apex administrative authority. CBIC is responsible for issuing Notifications No. 15/2026-Customs (N.T.) dated 01.02.2026 and Master Circular No. 04/2026-Customs dated 01.02.2026, standardising procedures, and ensuring uniform application of the rules across customs formations.

This change is not merely numerical but it reflects a broader policy shift aimed at modernising customs administration, reducing passenger disputes, and aligning baggage limits with present economic realities.

1.2 Legal Background: What were the Baggage Rules, 2016?

For nearly ten years, the Baggage Rules, 2016 governed how much value of goods a returning traveller could bring into India without paying customs duty. Under that framework, an Indian resident or tourist of Indian origin arriving by air or sea could bring goods worth up to ₹50,000 duty-free; a foreign tourist could bring up to ₹15,000.

Though the rules worked in principle, over time they started showing friction points:

1. rising inflation and increased consumer prices made the old limits outdated,
2. customs valuation disputes became frequent, and
3. travellers often faced uncertainty regarding what was “allowed”.

1.3 The New Regime: Baggage Rules, 2026

Effective midnight on February 2, 2026, the Baggage Rules, 2026 replace the earlier regulations with a more comprehensive and traveller-friendly regime announced by the Ministry of Finance and implemented through the Central Board of Indirect Taxes and Customs (CBIC).

Under the updated rules:

1. A resident of India or tourist of Indian origin arriving by air or sea may bring in goods worth up to ₹75,000 without paying customs duty. Materials included are those used for Personal Effects such as (clothes, shoes, accessories, toiletries, etc) and good purchased abroad and are bringing back such as Consumer electronics (phones, cameras, headphones), Fashion items (bags, sunglasses, shoes, clothes), Perfumes and cosmetics, watches, gifts and souvenirs.
2. A tourist of foreign origin (not being an infant) may do so for goods worth up to ₹25,000.
3. One new laptop/notepad duty-free in their baggage, in addition to their free allowance.

Certain items are generally not part of duty-free allowances and have separate conditions or limits, such as:

1. Maps and literature where Indian external boundaries have been shown incorrectly;

2. Narcotic Drugs and Psychotropic Substances;

3. Goods violating any of the legally enforceable intellectual property rights;

4. Wild life products;

5. Indian counterfeit currency notes or coin; and

6. Specified live birds and animals.

1.4 Declaration Norms for Personal Baggage

Under the Baggage Rules, 2026, goods carried for personal use are governed by a clear declaration framework. Used personal effects such as worn clothing, used electronics, and daily-use items may be carried without declaration and without any value limit, provided they are not in commercial quantity or prohibited by law. New or unused personal goods, however, are exempt from declaration only up to an aggregate value of ₹75,000; any excess value must be declared through the Red Channel and assessed by customs authorities. The rules thus balance traveller convenience with regulatory oversight by distinguishing between genuine personal use and dutiable imports.

1.5 Transfer of Residence (TR) Benefits

Travellers who are permanently moving their residence to India can avail of enhanced duty-free entitlements under a simplified Transfer of Residence regime. The longer the stay abroad, the higher the benefit cap:

1. Stayed abroad up to 12 months: Rs 1,50,000 cap
2. Stayed 1-2 years: Rs 3,00,000 cap
3. Stayed more than 2 years: Rs 7,50,000 cap

1.6 The Gender-Sensitive Jewellery Paradigm

A noteworthy and widely welcomed change concerns jewellery allowances. Rather than valuing ornaments which could fluctuate wildly based on global metal prices. For this purpose, “jewellery” refers strictly to personal ornaments such as rings, bangles, necklaces, chains, earrings, bracelets, pendants, mangalsutras, and similar wearable articles, whether made of gold, silver, platinum, or studded with precious stones, when carried as part of personal baggage for personal use:

1. Female passengers: Up to 40 grams of jewellery duty-free.
2. Male passengers (and others): Up to 20 grams duty-free.

However, the term does not include gold or silver bars, coins, biscuits, ingots, medallions, or any form of bullion, nor loose precious stones or items carried in commercial quantity. Such articles fall outside the jewellery allowance and attract separate customs treatment, including mandatory declaration and duty. This move eliminates ambiguity over rupee value caps and reflects a practical approach to personal adornments, acknowledging that jewellery is often not a commercial import but part of personal effects. The gender differentiation granting a higher allowance for female passengers as recognizes traditional usage patterns, particularly in the Indian context where women tend to carry more jewellery as personal wear.

1.7The hike in duty-free limits reflects multiple realities:

1. Rising global travel and purchase patterns: Over the last decade, international travel and shopping abroad have grown significantly. The older ₹50,000 limit had not kept pace with inflation and higher consumer prices, leaving many travellers liable for duty on items that previously wouldn’t have triggered charges.
2. Easing customs friction: By increasing the threshold and clarifying jewellery rules, the government intends to reduce disputes and lengthy checks at arrival counters, which have historically been a pain point for travellers.
3. Stimulating travel convenience: These rules align with broader efforts to make India’s customs regime more transparent and traveller-centric, with digital and advanced baggage declaration options further simplifying the process.

1.8 Key Changes in the New Rules (2026)

1. Higher duty-free limit: Increase from ₹50,000 → ₹75,000 for Indian residents and tourists of Indian origin.
2. Higher foreign tourist limit: Increase from ₹15,000 → ₹25,000.
3. Clearer jewellery rules: Switched from unclear value caps (under 2016) to specific weight limits- 40 g for females and 20 g for males/others.
4. Crew allowance specified: ₹2,500 for crew.

1.9 The Impact

This overhaul delivers practical value across demographics:

1. Indian residents returning with gadgets, gifts, or personal purchases now get a higher duty-free cushion.
2. Foreign tourists enjoy increased limits, supporting India’s tourism appeal.
3. Frequent travellers and NRIs benefit from streamlined procedures and clearer jewellery rules.
4. Customs operations become more predictable and uniform, leading to faster clearances and fewer disputes at airports and seaports.

1.10 Possible concerns

1. Misuse of higher limit: Some individuals may try to split purchases among family members to avoid duty.
2. Gold and high-value goods risk: Even with jewellery limits, gold remains a major smuggling channel, and enforcement will still be critical.
3. Revenue impact: A higher duty-free threshold may reduce small duty collections, but the Government appears to prefer: simplified administration, and compliance-based enforcement, over minor revenue recovery.

Conclusion

The Baggage Rules, 2026 signify more than just a numerical hike in limits; they embody a policy shift toward clarity, convenience, and fairness. By aligning duty-free thresholds with contemporary travel patterns and introducing sensible, weight-based jewellery rules, the government has struck a balance between protecting revenue and facilitating the modern traveller. As global mobility continues to expand, these rules pave the way for smoother journeys and fewer surprises at customs counters, truly letting passengers return home with more joy and less duty.