The Central Board of Indirect Taxes and Customs (CBIC) has announced a special relief measure for eligible units in Special Economic Zones (SEZs). This measure aims to facilitate the sale of manufactured goods to the Domestic Tariff Area (DTA) at concessional duty rates. The initiative is a response to the challenges faced by SEZ manufacturing units due to global trade disruptions, as highlighted in the Union Budget 2026-27.
To implement this relief measure, a notification has been issued under Section 25 of the Customs Act, 1962. It will be effective from April 1, 2026, until March 31, 2027. The concessional rates of customs duty for SEZ units have been carefully determined to ensure fair competition with units operating in the DTA.
Under this initiative, specific goods will benefit from reduced customs duties. For instance, goods previously taxed at 20% will now face a duty of 12.5%, while those taxed between 20% to 30% will see a reduced duty of 15%. Similarly, goods falling in the 30% to 40% duty range will now be taxed at 20%.
SEZ units seeking relief under this measure must have commenced goods production by March 31, 2025. Additionally, the manufactured goods claiming benefits should have a minimum value addition of 20% over the inputs. The emphasis on exports by SEZ units will be maintained, with DTA sales capped at 30% of the highest annual export value in the past three years.
The implementation of this relief measure will be automated by the CBIC. The assessment of bills of entry for DTA clearances under this scheme will be conducted through a faceless assessment mechanism. Certain sectors have been excluded from this relief to address sensitivities and protect domestic industries. Detailed FAQs will be issued for further clarification.
