Daijiworld Media Network - New Delhi

New Delhi, Apr 1: The Central Board of Indirect Taxes and Customs (CBIC) has rolled out a one-time relief measure for eligible units in Special Economic Zones (SEZs), allowing them to sell manufactured goods in the Domestic Tariff Area (DTA) at reduced customs duty rates.

The initiative follows the announcement made in the Union Budget 2026-27 and is aimed at supporting SEZ manufacturers facing difficulties due to ongoing global trade disruptions, according to an official statement.

The scheme has been implemented through an exemption notification under the Customs Act, 1962 and will remain in effect from April 1, 2026, to March 31, 2027.

As part of the relief, customs duties on specified goods have been significantly reduced. Items previously attracting a 20% duty will now be taxed at 12.5%, while those in the 20–30% range will face a 15% duty. Similarly, goods that earlier fell under the 30–40% bracket will now be subject to a reduced rate of 20%. Authorities have stated that these adjustments have been designed carefully to maintain fair competition with units operating in the DTA.

To qualify for the scheme, SEZ units must have started production on or before March 31, 2025. Additionally, the goods must have undergone at least 20% value addition over input materials.

The policy maintains a clear focus on exports, placing a cap on concessional DTA sales. Eligible SEZ units can sell up to 30% of their highest annual Free-on-Board (FOB) export value recorded in any of the previous three financial years.

Implementation of the scheme will be handled through CBIC’s automated systems, with assessments conducted under the faceless mechanism for greater efficiency and transparency.

However, certain sensitive sectors have been excluded from the relief window to safeguard domestic industries. The CBIC has also indicated that detailed FAQs will be issued to help stakeholders better understand the provisions of the scheme.