New Delhi, April 1 – The Central Board of Indirect Taxes and Customs (CBIC) introduced a special, one-time relief measure on Wednesday for eligible units in Special Economic Zones (SEZs) to facilitate the sale of manufactured goods to the Domestic Tariff Area (DTA) at concessional rates.
This move is in line with the Union Budget 2026-27 announcement, which addresses the concerns faced by manufacturing units in SEZs due to ongoing global trade disruptions, according to an official statement.
The Union Budget announcement is being implemented through an exemption notification issued under Section 25 of the Customs Act, 1962, for manufactured goods cleared by SEZ units to DTA, and will be in effect from April 1, 2026, until March 31, 2027.
While determining the concessional rates for eligible SEZ units under this relief window, the statement said, due care has been taken to ensure a level playing field for the units operating in the DTA.
Under this relief window, concessional rates of customs duty have been prescribed for notified goods. The customs duty of 20 per cent on goods has been reduced to 12.5 per cent, while that ranging from 20 to 30 per cent has been cut to 15 per cent. Similarly, customs duty on goods ranging from 30 to 40 per cent has been slashed to 20 per cent, the statement said.
The SEZ units claiming benefit under this relief window should have commenced production of goods on or before March 31, 2025. In addition, goods manufactured by such units, for which benefit is claimed under this relief window, should have undergone a minimum value addition of 20 per cent over the inputs.
The emphasis on exports by SEZ units will remain. Sales in the DTA at concessional rates by eligible SEZ units will not exceed 30 per cent of the highest annual FOB (free-on-board) value of exports in any of the three immediately preceding financial years, the statement said.
The relief window will be implemented through the CBIC's automated system, and the assessment of bills of entry for DTA clearances under this relief window will be done under the faceless assessment mechanism.
Furthermore, certain sectors have been excluded from this relief window due to certain sensitivities and to protect the domestic industry. Detailed FAQs are also being issued for further clarification, the statement added.
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