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CBIC Offers Duty Relief to SEZ Units for Domestic Sales Amid Global Disruptions

The Central Board of Indirect Taxes and Customs has announced a one-time relief measure for manufacturing units in Special Economic Zones. This allows eligible units to sell goods in the Domestic Tariff Area at reduced customs duty rates from April 2026 to March 2027. The scheme aims to provide temporary support amid global trade disruptions while capping domestic sales to protect export commitments. Implementation will be automated through CBIC's faceless assessment system.

Key Points: CBIC Relief for SEZ Units: Concessional Duty on Domestic Sales

  • Relief for SEZ units from global trade disruptions
  • Concessional customs duty on DTA sales
  • Effective from April 2026 to March 2027
  • DTA sales capped at 30% of past export value
3 min read

CBIC introduces one-time relief for SEZ manufacturing units to sell at concessional duty amid disruptions

CBIC introduces one-time duty relief for SEZ manufacturers to sell goods domestically at concessional rates from 2026-27, with eligibility caps.

"CBIC today introduced a special one-time relief measure to facilitate sales by eligible manufacturing units in SEZs to the DTA at concessional rates of duty - Ministry of Finance"

New Delhi, April 1

The Central Board of Indirect Taxes and Customs has introduced a one-time relief measure allowing eligible manufacturing units in Special Economic Zones to sell goods in the Domestic Tariff Area 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".

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.

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.

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.

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.

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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Reader Comments

P
Priyanka N
The 30% cap on DTA sales based on past export performance is a smart safeguard. It ensures the 'export first' character of SEZs isn't diluted. However, I hope the faceless assessment works smoothly. Sometimes these automated systems create more delays if there are technical glitches.
A
Aman W
As someone with a small business in the DTA, I have mixed feelings. While I understand the need to help SEZ units, the government must be very careful about which 'sensitive sectors' are excluded. We domestic manufacturers already compete with cheap imports. A level playing field is crucial.
S
Sarah B
The slab-wise duty reduction is quite detailed. Reducing a 20% duty to 12.5% is a significant cut. This should make certain manufactured goods more affordable in the Indian market. Will be interesting to see if consumers feel any price benefit or if companies just improve their margins.
V
Vikram M
Finally some relief! My company operates in an SEZ and the past two years have been challenging with order cancellations from abroad. This one-year window gives us breathing room to diversify our customer base slightly towards India without losing our SEZ benefits. Jai Hind!
K
Karthik V
The condition of 20% minimum value addition is key. It prevents simple trading or minimal processing units from taking advantage. This relief is for genuine manufacturers who add value within India. Hope the implementation is hassle-free.

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