New Delhi: The Central Board of Indirect Taxes and Customs (CBIC) on Wednesday introduced a special one-time relief measure for eligible units in Special Economic Zones (SEZs) to facilitate the sale of manufactured goods to the Domestic Tariff Area (DTA) at concessional rates of duty.
The move comes in pursuance of the Union Budget 2026-27 announcement to address the concerns faced by the manufacturing units in the Special Economic Zones (SEZ) 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 force with effect from April 1, 2026, till March 31, 2027.
While determining the concessional rates for eligible SEZ units under this relief window, due care has been taken to ensure a level playing field for the units working in the DTA, the statement said.
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. Besides, goods manufactured by such units, for which benefit is claimed under this relief window, should have undergone value addition of a minimum of 20 per cent over the inputs.
The emphasis on exports by SEZ units shall remain. DTA sales at concessional rates by the eligible SEZ units shall not be more than 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.
Further, certain sectors have been excluded from this relief window on account of certain sensitivities and to protect the domestic industry. Detailed FAQs are also being issued for further clarification, the statement added.
(IANS)
