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Duty-Free Imports Remain Subject to Domestic Regulation

The Bombay High Court has held that goods brought into an airport duty-free zone for warehousing and re-export remain subject to Indian public-health regulation.

In Mumbai Travel Retail v Union of India, 2026:BHC-OS:20816-DB, the importer argued that nicotine pouches kept within the customs barrier were not imported into the domestic market. The court rejected the broader proposition that such goods sit outside Indian territory or regulatory control merely because customs duty may not yet be payable.

The judges did not finally decide whether the pouches are “drugs” under the Drugs and Cosmetics Act because the importer had not supplied adequate product specifications. Instead, the company may file a detailed representation within four weeks. The competent authority must then issue a reasoned decision, after a hearing if necessary, within 30 days. The ruling separates customs status from regulatory jurisdiction.

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