The Central Board of Indirect Taxes and Customs (CBIC), under the Ministry of Finance in India, has a for eligible units in special economic zones (SEZs) to sell their manufactured goods in domestic tariff areas (DTA) at concessional duty rates.
This move aims to address recent global trade disruptions and act on policies announced in the union budget for the 2026-2027 financial year.
The exemption will be valid from 1 April 2026 to 31 March 2027 for eligible units that commenced production of their goods on or before 31 March 2025. Only goods that have undergone value addition of at least 20% above the inputs are eligible for the exemption.
Units set up in a free-trade and warehouse zone, and imported goods to the SEZ that are removed or used and then moved to DTAs are ineligible.
The upper limit for sales at concessional rates has been set at 30% of the highest annual free-on-board (FOB) value of exports in the preceding three financial years of an eligible SEZ unit. This relief measure will be implemented via faceless assessments through CBIC automated systems and assessment of bills of entry for DTA clearance.
A unit’s eligibility to claim this concessional rate will be determined under rule 79 of SEZ Rules, 2006.
