DPIIT extends conditional import exemptions for hermetic compressors till March 2027

New Delhi, May 8 The Department for Promotion of Industry and Internal Trade (DPIIT) has extended conditional exemptions for the import of specified hermetic compressors used in air conditioning and refrigeration manufacturing till March 31, 2027, according to a notification issued by the Ministry of Commerce and Industry on Friday.

The amendment, notified through the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2026, allows manufacturers to continue importing certain categories of compressors for captive manufacturing purposes under prescribed limits linked to their FY25 import volumes.

Under the revised framework for FY27, manufacturers will be permitted to import up to 40 per cent of reciprocating hermetic compressors below 2 Ton of Refrigeration (TR) capacity used in refrigerators and similar appliances.

The notification also allows up to 30 per cent imports of rotary hermetic compressors below 2 TR capacity meant for air-conditioners and heat pumps.

For higher-capacity applications, the Union government has permitted imports of up to 90 per cent for scroll and rotary hermetic compressors of 2 TR and above used in refrigeration, air conditioning and heat pump equipment.

In the case of Variable Refrigerant Flow (VRF) air-conditioning systems, manufacturers will be allowed to import up to 100 per cent of rotary hermetic compressors of 2 TR and above.

The DPIIT has directed manufacturers availing the exemption to maintain monthly import records and submit the details to the concerned authorities along with a phased indigenisation roadmap to the Central government.

The amendment has come into force with immediate effect following its publication in the Official Gazette.

The move is aimed at ensuring supply-chain continuity for domestic manufacturers while simultaneously encouraging localisation and strengthening domestic manufacturing capabilities under India's quality control framework.

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