The Central Board of Indirect Taxes and Customs (CBIC) on Wednesday introduced a one-time relief measure allowing eligible manufacturing units in Special Economic Zones (SEZs) to sell goods in the Domestic Tariff Area (DTA) at concessional customs duty rates.
The move, announced in the Union Budget 2026-27, aims to address challenges faced by SEZ units due to ongoing global trade disruptions. The relief will be effective from April 1, 2026, to March 31, 2027, and is being implemented through a notification issued under the Customs Act, 1962.
Under the scheme, concessional customs duty rates have been prescribed for specified goods, with reductions across multiple slabs to ease the cost burden on SEZ units. Officials said the rates have been calibrated to ensure a level playing field for domestic manufacturers operating in the DTA.
To be eligible, SEZ units must have commenced production on or before March 31, 2025, and the goods cleared under the scheme must have a minimum value addition of 20% over inputs.
The government has also capped DTA sales under this window at 30% of the highest annual free-on-board (FOB) value of exports achieved by the unit in any of the preceding three financial years, ensuring that the export-oriented nature of SEZs remains intact.
Additionally, certain sensitive sectors have been excluded from the scheme to safeguard domestic industry interests.
The facility will be implemented through CBIC’s automated systems, with clearances handled under the faceless assessment mechanism to streamline processes and improve efficiency.
The Finance Ministry said detailed guidelines and FAQs will be issued to provide further clarity to stakeholders.
