CBIC has announced a one-time relief for eligible SEZ manufacturing units, allowing DTA sales at concessional customs duties from April 2026 to March 2027. The move aims to mitigate global trade disruption impacts on these export-oriented units.
The Central Board of Indirect Taxes and Customs (CBIC) has 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, in line with the announcement made in the Union Budget 2026-27.
According to an official statement from the Ministry of Finance, the relief measure aims to address concerns faced by SEZ manufacturing units due to ongoing global trade disruptions. The move is expected to provide temporary relief to SEZ manufacturers by enabling them to access the domestic market at lower duty rates, while ensuring that export commitments and domestic industry protections remain intact.
Ministry stated, "Central Board of Indirect Taxes and Customs (CBIC) today introduced a special one-time relief measure to facilitate sales by eligible manufacturing units in SEZs to the Domestic Tariff Area (DTA) at concessional rates of duty".
Details of the Relief Scheme
The relief will be effective from April 1, 2026 to March 31, 2027, and has been implemented through an exemption notification issued under Section 25 of the Customs Act, 1962. The notification (dated 31.03.2026) allows concessional duty rates on goods manufactured by eligible SEZ units and cleared into the domestic market.
Eligibility and Conditions
Under the scheme, SEZ units that commenced production on or before March 31, 2025, will be eligible for the benefit. Additionally, goods must have a minimum value addition of 20 per cent over inputs to qualify under this relief window.
Concessional Duty Structure
The concessional duty structure has been defined across various slabs. For instance, goods currently attracting 7.5 per cent duty will now be taxed at 6.5 per cent, while those under 10 per cent duty will attract 9 per cent. Goods with duties of 12.5 per cent and 15 per cent will be taxed at 10 per cent, while 20 per cent duty items will see a reduced rate of 12.5 per cent, the statement said.
Products with duties between 20 per cent and 30 per cent will attract 15 per cent, and those between 30 per cent and 40 per cent will be taxed at 20 per cent under the relief measure.
Safeguards and Exclusions
To ensure that the export-oriented nature of SEZ units is maintained, Domestic Tariff Area (DTA) sales under this scheme will be capped at 30 per cent of the highest annual free-on-board (FOB) value of exports recorded in any of the three immediately preceding financial years, it said.
The government has also excluded certain sensitive sectors from this relief window to safeguard domestic industries and maintain a level playing field for units operating in the DTA.
Implementation Process
The implementation of the scheme will be carried out through CBIC's automated system, and the assessment of bills of entry for such clearances will be done through the faceless assessment mechanism. (ANI)
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